Transfield Services progresses on forecast growth plan for Easternwell
Transfield Services’ well services and well construction business, Easternwell, announced today that it has acquired the Queensland coal drilling operations of Silver City Drilling for A$20 million. This is part of the capital investment plan that was disclosed at the time of the Easternwell acquisition.
As part of the transaction, Easternwell has acquired the rights to continue Silver City Drilling’s operations in Central Queensland, including five drilling rigs and their associated equipment.
In addition, Easternwell will assume responsibility for Silver City Drilling’s recently agreed contracts with major blue-chip mining companies for drilling services at their mines in the Bowen Basin. The contracts range from three to five years and will utilise up to 15 drilling rigs.
Easternwell will be acquiring an additional four new rigs over the next six months to complete this expansion.
Transfield Services Managing Director and CEO, Peter Goode, said: “This is a strategically significant opportunity which strengthens Easternwell’s position in Queensland’s expanding coal market. Together with other opportunities that are well advanced, we are confident of delivering an additional A$30 million annualised equivalent EBITDA from FY12 in growth opportunities to Transfield Services.
“These developments will underpin Easternwell’s growth for FY12 and beyond, which we identified at the time we bought the business.”
Transfield Services acquired Easternwell in December 2010 and has a robust pipeline of work developing in oil and gas, power, defence, transport and social infrastructure, providing continuing diversification for the business.
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