New Contract Awards

RNS Number : 0395I

Capital Drilling Limited

08 June 2011

 



For Immediate Release

8 June 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 announce it has recently been awarded a further three new contracts.

The new contracts are as follows:

Contract 1 - BHP Billiton/Ethiopia

Capital Drilling Energy has been awarded a contract with BHP Billiton (LSE: BLT / ASX: BHP), the second contract with the mining major this year, which will initially involve the deployment of one rig to carry out exploration drilling for potash in the Danakil Depression of the Afar National Regional State in North East Ethiopia. The contract is expected to run until late 2011 and represents the Group's second energy contract, having recently concluded the first contract with Oil Search in Papua New Guinea. The rig required for the contract is currently in mobilisation and represents an addition to the Group's fleet.

Contract 2 - Kinross Gold/Ghana

Capital Drilling Africa has been awarded a contract with Kinross Gold (TSX: K) in Ghana. Kinross Gold recently acquired the Chirano Gold Mine through the takeover of Redback Mining. Capital Drilling Africa has been contracted to supply two diamond rigs for development drilling, with the contract expected to commence in early Q3 2011 for a minimum 12 month contract. The rigs required will be sourced from the Group's existing fleet.

Contract 3 - Kinross Gold/Mauritania

Capital Drilling Africa has been awarded a further contract with Kinross Gold in Mauritania which represents an expansion of activity at the Tasiat Gold Mine, where the Group currently has five diamond rigs operating. The new contract is for an additional air core rig to be utilised in exploration drilling, which has been sourced from within the Group's existing fleet.

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

"I am very pleased to announce today's contract wins, which follow closely on the heels of contracts recently awarded in Chile with BHP and the Solomon Islands with Allied Gold. The contracts represent the expansion of existing relationships with blue chip and major mining companies and further strengthens the long term visibility of our revenue profile. Having concluded successfully our first energy contract with Oil Search in Papua New Guinea we are looking forward to working in Ethiopia and continuing to grow the energy division. The contract with Kinross continues our drive in the significant market of West Africa."

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

Capital Drilling
Jamie Boyton, Executive Chairman		[phone]
Brian Rudd, CEO
David Payne CFO
Liberum Capital Limited
Clayton Bush Richard Bootle		[phone]
Canaccord Genuity
Andrew Chubb Bhavesh Patel		[phone]
Buchanan Communications
Bobby Morse		[phone]
Katharine Sutton Gabriella Clinkard

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 78 drilling rigs with established operations in Tanzania, Zambia, Egypt, Mauritania, Mozambique, PNG, Eritrea 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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