Haddington Resources Limited has decided not to complete the acquisition of Adelaide based Underdale Drillers as previously announced on 19 February 2008. The Company was unable to satisfactorily complete its due diligence enquiries on Underdale, including satisfying Haddington’s value criteria and therefore, has decided not to proceed. Haddington currently operates 6 drill rigs in central Queensland through its subsidiary Belldale Enterprises and 14 drill rigs in Indonesia through its subsidiary Asiadrill. The Company has an active expansion program in place for its drilling services division and is currently reviewing opportunities for acquisition of other Australian based drilling companies. Haddington’s ongoing objective for its drilling businesses is to grow its position in the coal industry in Australia and Indonesia, expanding where profitable contracts arise, and diversify into minerals exploration drilling where greater equipment utilization and higher revenues are achievable. Haddington is targeting annual revenue from its drilling services businesses of $40 million from the operation of 40 drilling rigs across Indonesia and Australia, which it aims to achieve within the next 12 months through its expansion strategy.
HDN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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