(MENAFN- ProactiveInvestors - Australia) Titan Energy Services (ASX: TTN) has signed a deal to provide a new drilling rig to coal seam gas to liquefied natural gas player Australia Pacific LNG for a minimum of one year.
The Letter of Commitment includes two 1 year options and will allow its Atlas Drilling division to purchase a new rig, Atlas Rig 4, which is expected to cost about A$4 million including mobilisation costs.
Negotiations to finalise the contract are now underway.
Atlas Rig 4 is expected to be fully operational for APLNG in late February or early March 2013.
It will be commissioned as a surface casing rig and will drill ahead of APLNG's main production
drilling rig fleet in order to accelerate the delivery of production wells.
The contract also gives Atlas Drilling long term contracts with three of four major coal seam gas developers. The other two are QGC and Shell's Arrow Energy.
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