Western Australian drilling company DDH1 has received investment from US based Oaktree Capital Management, enabling the company to expand its capacity and capabilities.
DDH1 provides deep directional mineral drilling services used to identify and extend resources, reserves and mining plans for Australia’s mining industry. It designs complex drilling programs, with its drill rig fleet the largest in Australia for deep directional mineral coring.
The company’s co-founders Murray Pollock and Matt Thurston will continue as chief executive officer and chief operating officer, respectively.
“DDH1 will continue to be managed by its founding directors and long-term staff, and we remain committed to our strategy of being the drilling contractor and employer of choice in the mining and exploration industry,” Pollock said.
“With the support of Oaktree’s capital and expertise, we intend to focus on growing our business organically, and we will also carefully consider consolidating similar niche operators to gain expanded capacity and provide our customers with enhanced drilling services as industry demand recovers.”
Oaktree specialises in alternative investments, with $US100 billion in assets under management as of March 31, 2017. The company has researched Australia’s drilling landscape and identified DDH1 as a leading operator in the sector.
“Throughout the recent mining downturn, there has been significant underinvestment in the capacity of the Australian drilling services industry due to low demand, competitive pricing and numerous insolvencies,” Oaktree managing director Byron Beath said.
“During this period, DDH1 has continued to invest in its capacity and has consolidated its market-leading position in its targeted service. Oaktree’s investment will further enable DDH1 to grow to meet the demand from its customers.”