TITAN Energy Services Limited (TTN) said it has expanded its Atlas Drilling division, with an agreement to operate and supply a fourth rig.
Atlas signed a Letter of Commitment (LOC) with Australia Pacific LNG (APLNG) for a one‐year drilling contract for the new rig, with two 1 year options (1 +1 +1).
The LOC with APNLG will allow Atlas to purchase and deliver a Surface Casing Rig Package (Atlas Rig 4).
Atlas estimates that the total rig package capital expenditure and mobilisation costs will be approximately $4.0m and will be funded via a combination of debt and operating cashflows.
The next phase under the LOC is to finalise the contract.
Titan expects Atlas Rig 4 to be fully operational for APLNG in late February, early March 2013, taking into account potential weather, and shipping delays.
The rig is being commissioned as a surface casing rig and will drill ahead of APLNG’s main production drilling rig fleet in order to accelerate the delivery of production wells.
“The addition of a fourth rig, underpinned by a long‐term contract with a blue chip client such as APLNG is a rewarding achievement for Atlas Drilling and enhances the business’s reputation as a credible and competent driller,” Titan’s managing director Jim Sturgess said.
“With the addition of this contract, Atlas Drilling will have long‐term contracts with three of the four major coal seam gas (CSG) developers in Queensland, namely APLNG, QGC and Arrow Energy.”
APLNG is Australia’s largest CSG producer and is developing gas fields in Queensland’s Surat and Bowen basins for an LNG facility off the coast of Gladstone. APLNG is a CSG‐to‐LNG joint venture partnership between Origin, ConocoPhillips and Sinopec.
[mappress]
LNG World News Staff, November 6, 2012; Image: APLNG