Energold Drilling Announces Multi-Year Energy Drilling Contracts
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/21/12 -- Energold Drilling Corp. (TSX VENTURE: EGD) ("Energold" or "the Company" or "Energold Group"), a leading worldwide operator and manufacturer of mineral exploration, water and energy drilling rigs, is pleased to announce that it has recently been awarded several long term service contracts (up to five years) for the Company's energy drilling division, Bertram Drilling Corp. These contracts are with major oil and gas corporations pursuing long term unconventional and conventional hydrocarbon exploration in Western Canada, including oil sands coring as well as seismic drilling activities.
Management estimates the combined value of these contracts alone to be worth at least $45 million annually, starting in 2013 and anticipates substantial growth as the Company is actively pursuing work with potential and existing customers heading into the upcoming winter drilling season. Management further expects the energy drilling division to reach $45-55 million in 2012, a significant portion of Energold's consolidated revenue for the year. Management's energy division growth target for 2013 is 25-50% over 2012.
Energold's energy drilling business has provided the Company with growing diversification of revenue, while also helping to offset some seasonal factors associated with mineral drilling activity that tends to occur mostly during the second and third quarters. While these energy drilling contracts are for year-round activity, the majority of the drilling services will be conducted during the winter drilling season (January to April).
At this time, management believes that the energy division has sufficient equipment to meet existing contractual demand. However, the Company is exploring various avenues, both organically and via acquisition, to increase its business activities and fleet to meet growing demand in its core North American base of operations and also penetrate potential new markets in the Middle East, Europe and Latin America.
About Energold Drilling
Energold Drilling Corp. is a leading global specialty drilling company that services the mining and energy, and manufacturing sectors in 22 countries globally. Specializing in a socially and environmentally sensitive approach to drilling, Energold provides a comprehensive range of drilling services from early stage exploration to mine site operations for both metals and energy in addition to its established drill rig manufacturer, Dando. Energold also holds 6.98 million shares of IMPACT Silver Corp., a profitable silver producer in Mexico.
On behalf of the Directors of Energold Drilling Corp.,
Frederick W. Davidson, President, CEO
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Energold Drilling Corp.
Jerry Huang
Investor Relations Manager
(604) 681 9501
(604) 681-6813 (FAX)
info@energold.com
Energold Drilling Corp.
Steven Gold
Director - Corporate Development
(416) 648-4065
sgold@energold.com
www.energold.com