Dynamic Group Holdings, the owner of Dynamic Drill & Blast and Orlando Drilling, is looking to further consolidate the Australia-based drilling sector by acquiring Welldrill from founder Peter Chegwidden.
Welldrill, founded in 2000, has serviced a number of Western Australia-based government organisations and mining companies (including BHP, OZ Minerals and BCI Minerals), in this period.
Dynamic, which has lodged a bid of A$19 million ($13 million) for the company, says it has identified a “number of opportunities to enhance performance” under the Dynamic umbrella. It would also see the company add another six water well rigs to its offering, bringing the total count to circa-45 rigs.
The company said the acquisition would provide a “defensive revenue stream” with increased exposure to government contracts and production mining. This is on top of the exploration and grade control drilling exposure it has with Orlando Drilling and drill and blast exposure it has with Dynamic Drill & Blast.
“Dynamic is also excited about the in-house safety, automation and performance tracking technology of Welldrill, which it plans to adopt across its existing fleet,” it added.
Dynamic Managing Director, Mark Davis, said: “Welldrill is expected to provide a critical third limb to our existing drill and blast, and exploration and resource definition services.”