Oil Drilling & Exploration buys rig for Indonesian contract

Australian on shore drilling contractor Oil Drilling & Exploration, a wholly owned subsidiary of Australian Oil & Gas Corp. Ltd. had purchased an on shore drilling rigs to undertake three-year contract and with possible one-year extension for an unidentified major integrated American oil company in Indonesia, according to an executive.

CW Silver, chairman of Australia Oil & Gas Corp. hinted that the state-of-the-art drilling rig would cost the company between US$ 12 million to $ 17 million.

?The rig will incorporate the latest state of the art technology and funding for its purchase initially will be through debt financing. Equity raising could be considered depending on what if any other opportunities present themselves,? Silver said when addressing Australia Oil& Gas Corp. annual general meeting in Sydney Friday. (alex)