- Australian-based drilling company DDH1 (DDH) is expanding its drill rig fleet due to customer demand
- DDH has previously committed to adding 11 drill rigs to its fleet in FY21 as part of its IPO Prospectus
- Now, due to customer feedback, DDH has taken the opportunity to purchase four more rigs
- Of the additional rigs, two will be functional this financial year while the other two will be functional in FY22
- Shares are 3.9 per cent higher at 93.5 cents apiece
Australian-based drilling company DDH1 (DDH) is expanding its drill rig fleet amid growing demand from its customer demand.
Four new surface mineral drilling rigs will be added to the fleet in addition to 11 rigs already secured at the start of this financial year.
The 11 rigs are part of the organic fleet growth that was included in DDH’s IPO Prospectus, released in February.
Now, due to feedback from customers and in response to outstanding exploration successes, DDH has the opportunity to purchase the extra rigs.
Of the additional rigs, two are expected to be operational this financial year with the other two operational in FY22.
By the first half of next financial year, DDH1 expects its fleet will consist of 103 modern and highly specified drilling rigs.
DDH1’s Managing Director and CEO, Sy Van Dyk, said the rig purchases demonstrate the company’s confidence in Australia’s mineral drilling sector.
“As we highlighted in our Prospectus, DDH1 is experiencing strong industry growth with rising demand for our services because of increased exploration, development and production spending by minerals exploration and mining companies,” he commented.
Shares are 3.9 per cent higher at 93.5 cents apiece at 4:10pm AEDT.