Major Drilling gains assets Down Under

Moncton, N.B.-based Major Drilling is acquiring Ausdrill’s exploration drilling operations in Queensland, Australia, and New Zealand.

The purchase includes drilling equipment, as well as contracts worth more than $11.5 million.

“Given the work remaining under the contracts, this acquisition will immediately generate revenue, cash flow, and incremental earnings,” says Major Drilling’s president, Francis McGuire.

The total consideration for the acquisition (excluding contracts) is $4.4 million.

All shares in Ausdrill owned by Major Drilling will be surrendered by way of an Ausdrill share re-purchase at a carrying cost of $1.6 million. Major will also assume existing leases and loans worth $1.2 million. In addition, Major will pay Ausdrill 48 monthly payments totalling $1.6 million.