Pentium contract pipeline exceeds rig capacity

Pentium contract

Image: Pentium Hydro.

Pentium Hydro has won a goods and services contract with Iluka Resources for the drilling of dewatering wells at the Cataby mine site in Western Australia.

The Vysarn subsidiary will receive $1.74 million for the contract, following a $1.8 million contract in 2020 for similar services between the parties announced in January last year.

Pentium currently contracts across major iron ore mine sites in the Pilbara region owned by the likes of Roy Hill and Fortescue Metals Group (FMG).

In April, Pentium also secured a $13 million bore field drilling contract with Australian Potash at its Lake Wells sulphate of potash project near Laverton in Western Australia.

Due to a growing list of clients, Vysarn managing director James Clement said Pentium will need to secure further equipment to cater to a promising future.

“This work now provides a contract pipeline exceeding the capacity of Pentium’s current fleet of 12 rigs in the first half of the 2022 financial year,” Clement said.

“Management intend to lease or enter into hire purchase arrangements to execute the work in hand with additional drill rigs.”

Clement said the new contract displayed the quality of Pentium’s work.

“Pentium is delighted to be chosen again as the successful tenderer to provide Iluka hydrogeological drilling services,” he said.

“Iluka continues to be an important client for our company and the award of the contract provides a further endorsement of the quality of Pentium’s service offering.”

Pentium will look to mobilise to Cataby in July 2021, with the contract to be complete in the second half of 2021.

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