|November 16, 2011|
Energold Announces New Record Number of Meters Drilled and Operational Update
|Energold Drilling Corp. ("Energold" or the "Company") continues to experience significant growth in its Mineral Drilling Services business with another company record of 170,300 meters drilled in the third quarter of 2011, up from the previous record of 155,300 meters in the second quarter of 2011. This also represents a 66% increase over the comparable period in 2010 of 102,500 meters.|
Energold's Manufacturing Division increased its order book for water well units and mineral rig orders showing increased demand from clients, primarily for projects located in West Africa. The level of activity in the Energy Division was very active with 229,730 meters of shot hole seismic and geothermal drilling projects completed in August and September, with preparations for a very busy winter oilsands coring season underway. Energold has a total inventory of 244 rigs and has seen its workforce increase 45% from last year to over 2,000 employees in 22 countries worldwide, including North America, Africa, Central America, South America and Asia.
Summary of Quarterly (Q) Meters Drilled
Year to date, Energold drilled a record 451,400 meters, an 85% increase from the same comparable period in 2010. An increasing portion of the drilling mix during the start of the second half of the year included 'frontier-drilling-oriented' programs primarily in West Africa and South America; however, a majority of the drilling projects worldwide continue to be the more competitively bid 'brownfields' mine site programs. The Company has developed long term client relationships on brownfields projects which restricts mobilization of current utilized rigs into more 'frontier' projects earlier in the year. With the recent new rig additions deployed into remote locations, the Company anticipates this should impact on the average rate-per-meter during the balance of the year and into 2012.
All regions performed strongly, with Africa outperforming all markets. Mexico experienced a significant increase in demand and productivity contributing to approximately 40% of the total meters drilled for the nine months ended September 30th, with numerous rigs concentrated on a few major brownfields projects. Brazil, Central America, Peru continue to remain active, with significant improvement in Madagascar. Africa's growth continues to be very strong with approximately one-third of the fleet now located there with most programs devoted to frontier-oriented projects and new projects to introduce larger multipurpose rigs.
At September 30, 2011, the Company had 125 mineral drilling rigs with four more under construction in response to continued demand for highly mobile drilling rigs and increased exploration expenditures in frontier drilling. The fleet includes 90 EGD Highly Mobile Surface Rigs, seven Underground Rigs as well as a number of conventional rigs. Operational efficiencies and capabilities derived from the Company's continuous investment in research and development have been implemented through the retrofit of a number of the rigs to enhance their performance. In addition, promising field testing of new prototypes such as the EGD Type 4 Mobile Rig ("Series 4") designed to expand the capabilities of our highly mobile fleet should add significant value by enabling the extension of services offered to our clients. The total rig fleet count now stands at 244 rigs, including 119 rigs from the recent acquisition of Bertram International Corp. ("Bertram") which comprises a mix of oil sands coring, shot hole seismic and geothermal drilling rigs.
The Company's Manufacturing Division, Dando Drilling International Ltd. (U.K.) ("Dando"), has experienced continued positive growth for the start of the second half of the fiscal year. Dando is experiencing increased demand for its large multipurpose mineral drilling rigs primarily in West Africa which are currently on order. During the quarter, Dando shipped nine drilling rig units and year to date, 20 rigs in total were built and shipped to organizations in the mining and water well sectors. A total of eight rigs are on order and procurement of which three rigs will be completed and delivered by year end.
Based on recent market intelligence and the strong demand for water well drilling rigs recently recorded by Dando, especially in the African markets, there is an indication of a growing market for providing rigs and experienced crews able to efficiently and effectively carry out the increasing number of programs. Dando's core business of providing water well rigs remains strong and provides potential for Energold to expand into the water well drilling services business through the establishment of a new division.
As reported on July 25, 2011, the Company completed the acquisition of 100% of the outstanding shares of Bertram (Carbon, AB) on July 25, 2011. Bertram was very active during the traditionally slower summer/fall season, completing over 19,000 holes and a total of 229,730 meters from the date of acquisition to September 30, 2011. The majority of drilling programs completed by Bertram were shot-hole seismic projects spread across five states in the U.S.A. The summer and fall drilling levels experienced by Bertram were back to levels not experienced since 2006. Preparations are well underway to undertake contracted coring services with a number of international oil and gas clients scheduled for the traditional winter season.
The financial results for the third quarter ended September 30, 2011 will be released in the last week of November.
Energold Drilling Corp. is an environmentally and socially sensitive diamond drilling company, taking the lead on what is rapidly becoming the new standard for the mining industry. Energold holds 7 million shares of IMPACT Silver Corp., a profitable silver producer in Mexico.
On behalf of the Directors of Energold Drilling Corp.,
"Frederick W. Davidson"
For further information, please contact:
Sunny Pannu -- Investor Relations
(604) 681 9501 or via email at email@example.com
Forward-Looking Statements. Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to proposed activities, work programs and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the effects of general economic conditions, a reduction in the demand for the Company's drilling services, the price of commodities, changing foreign exchange rates, actions by government authorities, the failure to find economically viable acquisition targets, title matters, environmental matters, reliance on key personnel, the ability for operational and other reasons to complete proposed activities and work programs, the need for additional financing and the timing and amount of expenditures. Energold Drilling Corp. does not assume the obligation to update any forward-looking statement.
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