New Contract Awards

RNS Number : 8491T

Capital Drilling Limited

13 December 2011

 



For Immediate Release                                                                                                                          13 December 2011

Capital Drilling Limited

("Capital Drilling" or "the Group")

New Contract Awards

Capital Drilling Limited (CAPD: LN), the emerging and developing markets drilling company, is pleased to today announce two further contract wins and extensions.

The new contracts are as follows:

Contract 1 - Kinross Gold, Mauritania

Capital Drilling Mauritania has recently been awarded a new development drilling contract with Kinross Gold in Mauritania, which represents a further expansion of activity at the Tasiat Gold Mine, where Capital Drilling has been drilling since 2010. The new contract is for two reverse circulation rigs, one of which has been sourced internally with the second newly purchased. Both rigs are expected to commence drilling in the first half of 2012.

Contract 2 - BHP Billiton, Chile

Capital Drilling Chile has been awarded a contract extension in the form of additional rigs for development drilling at the Cerro Colorado Mine in Chile. Capital Drilling commenced drilling for BHP Billiton in 2011.  The extension calls for an additional 2 diamond rigs, which have been acquired and mobilised to site, with drilling expected to commence in January 2012.

These new rig additions have increased the Company's year-end rig fleet to 85 rigs, noting the Company has recently sold one rig & decommissioned a second rig, as part of the ongoing program of fleet management.

Commenting on the new contracts, Jamie Boyton, Executive Chairman, said:

"We are pleased to announce these new contracts today which demonstrate the continuing development of relationships with our existing customers. The current expansion of the fleet displays our strategy of organic growth working on long life assets with blue chip and major mining companies."

For further information please access Capital Drilling's website www.capdrill.com or contact:

Capital Drilling                                                            

Jamie Boyton, Executive Chairman                         [phone]

Brian Rudd, CEO                                                        

Liberum Capital Limited                                           

Clayton Bush

Richard Bootle                                                             [phone]

Canaccord Genuity                                                    

Andrew Chubb

Bhavesh Patel                                                              [phone]

Buchanan                                                                    

Bobby Morse  

Gabriella Clinkard                                                       [phone]

About Capital Drilling

Capital Drilling, which has a Premium Listing on the Main Market of the London Stock Exchange, provides specialised drilling services to mineral exploration and mining companies in emerging and developing markets, for exploration, development and production stage projects. The Company currently owns and operates a fleet of 85 drilling rigs with established operations in Tanzania, Zambia, Egypt, Mauritania, Mozambique, PNG, Ethiopia, Ghana and Chile. The Group's corporate headquarters is in Singapore and it has its administrative offices for South America in Santiago.

 

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