Leo Investments enters drilling services business
Thursday, March 15 2012 - 03:20 AM WIB
By Alexander Ginting
Indonesia-listed mining company PT Leo Investments Tbk plans to expand business into oil, gas drilling services through acquisition of a land rig and CBM drilling contract.
According to the business plan submitted with the IDX recently, the company said it will buy a 350 HP land rig along with 22 units of camp container for around US$4 million and a CBM drilling contract worth $14.7 million for $ 650,000.
Under the contract, the company will provide an integrated drillings services for 235 days at Kotabu CBM block in Kota Baru and Tanah Bumbu regencies, South Kalimantan .
The company said that funds for the expansion will be raised through the planned right issue.
Editing by David Mustakim