Canadian drilling firm hopeful on drilling jobs in the geothermal sector
Energold Drilling work in U.S. (source: Energold Drilling)
Alexander Richter
25 Jan 2018
Canadian drilling firm Energold Drilling is hopeful to expand its drilling rig utilization rate through some geothermal jobs expected to start this spring.
In a corporate update today, Canadian drilling firm Energold Drilling Corp. provides details on its results for the past year, but also an outlook for the year 2018. While likely not that interesting in a geothermal context, as the company has essentially been serving the oil & gas sector, there is one part where the company mentions geothermal that catches attention.
While reporting on mineral drilling, its manufacturing division, it highlights results for its energy division with higher oil prices … and likely better utilization rates through “several geothermal jobs due to start in the spring of this year”. As the company talks about a seasonal spring drop off in its oil sands drilling, this could mean the company is seeing possibilities for projects in Canada, which would be great news.
Here the short excerpt on the company’s review and outlook for its energy division:
In the energy division, higher oil prices have translated into an earlier than usual start to the 2017-2018 winter drilling season with equipment and crews mobilized as early as mid-November compared to early December during more recent seasons. Budgets have increased and activity is improving in Western Canada. The Company’s two key customers have ramped up their drilling demands and pending cooperative weather, the Company is expecting a much-improved financial performance in 2018 with one-third more units drilling in the oil sands this winter than last year. In addition, utilization rates could stay higher for longer, as several geothermal jobs are due to start around the seasonal spring drop off in oil sands drilling.
“Following several years of reduced activity and visibility, higher sustained commodity prices have translated into expanding exploration budgets and better financial performance for the Company. We continue to monitor our working capital levels as new equipment deployments are costly, while demand is surpassing budgeted levels for the upcoming year” said Energold Drilling Corp. President & CEO, Fred Davidson.
Source: Company release
