Titan Energy Services Ltd.’s drilling services subsidiary Atlas Drilling announced Wednesday it has secured a contract for an initial three well program located in the Canning Basin, drilling exploration wells with Buru Energy Limited. Rig 2 is expected to mobilize in May with drilling to commence in June and the initial wells to be completed by September. The contract includes an option for a further well and should the optional well be exercised the contract will extend until approximately the middle of October.
Atlas Rig 3 recently drilled and completed two exploration wells in the Arckaringa Basin, South Australia. This contract commenced in late October 2014 and while it was expected to be completed in February the contract extended to the end of March.
Titan’s Acting CEO Christine Hayward commented, “We are pleased to secure this contract in Western Australia and forge a strong relationship with a new client.
We expect the deployment of Rig 2 to this region for the first time will create opportunities for Titan to secure other potential clients in the region who can take advantage of Rig 2’s versatile capability to progress their oil and gas drilling programs once it has completed its current drilling program”.
Tender activity for Atlas drilling rigs has increased during the quarter, with Rigs 1, 3 and 4 being actively marketed for new drilling programs likely to commence during the latter part of 2015 and early 2016.
Hofco Oilfield Services continues to perform well despite difficult industry wide trading conditions. It’s diverse customer base, ongoing maintenance services and rental equipment supply for new clients in Papua New Guinea has provided the business with a consistent, stable revenue stream.
The majority of existing Resources Camp Hire (RCH) temporary accommodation camp contracts recently completed with one 10-man camp on hire at present. The RCH room capacity of 557 rooms has not achieved any meaningful revenue since December 2014. That combined with the high fixed lease costs associated with the accommodation units is a challenge for RCH cashflows.
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