Brandrill announces coal drilling acquisition plans

Henderson-based drill and blast company Brandrill Ltd has announced plans to acquire the coal drilling management services business of Queensland-based US company P&H MinePro Services, after posting an 8 million net profit for 2005-06.

The full text of a company announcement is pasted below

Brandrill Ltd has entered into a Heads of Agreement with P&H MinePro to acquire their coal drilling management services business.

The P&H MinePro drilling management services business is comprised of a fleet of 11 large drill rigs and 38 staff providing drilling services to three projects in the Bowen Basin in Queensland and two projects in the Hunter Valley in New South Wales.

The Heads of Agreement is subject to completion of final due diligence and documentation over the next two weeks. The intention is to complete the transaction as quickly as possible with minimum disruption to staff and clients.

Brandrill currently has a fleet of 62 drill rigs operating across Australia and in 2005-06 had revenues of $102 million from drill and blast activities. Of the current fleet, Brandrill has 13 drill rigs operating in five projects in the Bowen Basin, with a further two new rigs being delivered over the next three months. The 11 P&H MinePro rigs are compatible with Brandrill's existing coal drilling fleet. The acquisition of the P&H MinePro drilling management services business will provide a significant increase in activities in the Bowen Basin and establish a firm foundation for further expansion in the Hunter Valley.

The acquisition will be funded from a combination of working capital and equipment finance. Further details will be provided on completion of due diligence by the end of October 2006.