AJ LUCAS expects its drilling division to expand by 50% over the next 18 months as the market for coal and coal seam gas continues to sky rocket.
Lucas is the largest drilling service provider to Australia's coal and coal seam gas (CSG) sectors, and a leader in innovation and advanced drilling services.
The estimates follow strong results for the 2007-8 period, which have more than doubled since the previous period.
AJ Lucas CEO, Allan Campbell, says the results reflect the company’s “strategic positioning in the energy, resources, water and infrastructure sectors”.
Lucas now boasts 88 rigs and is positioned to benefit from drilling required for the Gladstone Liquefied Natural Gas (LNG) project, a $7.7bn operation expected to produce 3-4Mt of LNG each year.
“The project will require over 4,400 development wells and 1,500 core wells before 2015,” Campbell said.
He says the company has been able to benefit from selecting CSG prospects with an appropriate risk/reward profile based on its understanding of engineering, technology and gas extraction methodologies.
“Given the favourable outlook for energy and water infrastructure expenditure, our forecasts suggest another year of strong growth,” he said.
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