Mining driller Ausdrill has expanded its reach into coal seam gas exploration drilling with the announcement of several contract wins collectively worth $84 million.
Ausdrill subsidiary Energy Drilling Australia won a contract with Santos for coal seam gas drilling in the Fairview area in Central Western Queensland.
The contract has an initial six month term, with options to extend for an additional nine months in three month increments.
It is EDA's first significant coal seam gas drilling since entering the market in 2009.
Ausdrill currently holds a 50 per cent stake in EDA, and has entered an agreement to acquire the remaining interest.
Meanwhile, Ausdrill's Australian drill and blast division was awarded letters of intent for two major contracts; a $36 million, 36-month contract at Mineral Resource's Carina iron ore project; and a $25 million, 42-month deal with First Quantum Minerals' Ravensthorpe nickel operation.
In addition, Ausdrill's explosive supplies division Synegex secured a two-year, $8 million contract with Redline Drill and Blast to supply explosives at Sandfire Resources' DeGrussa copper-gold project.
"These contracts demonstrate the success of our strategy of building a diversified business, with each of our divisions contributing significantly to Ausdrill's overall growth," managing director Ron Sayers said.
At 10:43AM Ausdrill shares had gained 2.8 per cent, to trade at $3.31.
