New Contract Awards

RNS Number : 6680Q

Capital Drilling Limited

24 October 2011

 



24 October 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 further contract wins and extensions.

The new contracts are as follows:

Contract 1 - Centamin Egypt

Capital Drilling Egypt has recently been awarded a new four year production drilling contract with Centamin Egypt (LSE: CEY / TSX: CEE) which renews the existing contract for the provision of Blast Hole and Grade Control drilling services at the Sukari Gold Mine in Egypt. 

Capital Drilling has been active with Centamin Egypt since 2005, commencing with exploration and development drilling before expanding into production drilling in 2008.  The new production contract runs to 2015 and we expect to deploy further production rigs to site in 2012 , consistent with Centamin's expansion plans.

Contract 2 - African Barrick, Tanzania

Capital Drilling Tanzania has been awarded a contract for an additional two new diamond drill rigs for development drilling at the North Mara Gold Mine in Tanzania.  The rigs have already been mobilised to site and recently commenced drilling. Capital Drilling has been active in Tanzania since 2005 and working with African Barrick at North Mara since 2008, with operations in exploration, development and production drilling.

Contract 3 - Thani Dubai Mining, Egypt

Capital Drilling Egypt has been awarded a contract extension in the form of additional metres for exploration drilling at the Shalateen Southern Egypt project. Capital Drilling commenced drilling for Thani Dubai in 2010.  The contract amendment calls for an additional rig, which has been sourced from the existing fleet.

These new contracts have increased the Company's rig fleet from 77 rigs at the half-year end to 83 rigs currently.

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

"The new contracts with Centamin Egypt and African Barrick Gold, both of whom are long standing customers, demonstrate Capital Drilling's robust model of operating on long life assets which are undergoing significant expansions, underpinning our ability to grow our business organically. We are also pleased to announce an extension to our existing contract with Thani Dubai at their prospective Shalateen project in Southern Egypt."

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 83 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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