Estrella International Energy Services secures drilling contracts in Chile and Argentina

Estrella drilling rig (source: Estrella International)
Alexander Richter 13 Apr 2011

Estrella International Energy Services, a drilling company, announced it has been awarded geothermal drilling contracts for GeoGlobal Energy's 2011-2012 drilling campaign in Chile and a contract for services on an upcoming drilling campaign for a Canadian firm in Argentina.

Reported in a release, drilling company Estrella International Energy Services Ltd. (TSX VENTURE:EEN) announces the award of a number of new contracts, and the extension of a key contract in Colombia.

GeoGlobal Energy LLC / (A Major Geothermal Operator in Chile) has awarded Estrella contracts for their upcoming 2011-2012 drilling campaign. The contracts include the provision of directional drilling services, drilling tools and the provision and running of liner hangers. Also on the same project, Estrella is mobilizing Rig 1201 to the operating area in central Chile for an expected project start during the second quarter. The award of these projects maintains Estrellas leading position in the Geothermal sector in South America.

A Canadian Junior operating in Argentina has selected Estrella to provide engineering, planning and project supervision services on their upcoming drilling campaign. The project is expected to consist of drilling 4-6 wells in the coming months.

In Colombia, Estrella’s 49% owned subsidiary Zigma S.A.S. has been awarded a contract to extend the services of drilling rig PL1 for up to an additional 15 wells after its current two well program is completed. This contract should see the rig operating continuously through the remainder of the calendar year.

“The expansion of our directional and consulting businesses are core objectives for the company in 2011. We are pleased to see that that our customers have the confidence to award contracts to Estrella in such challenging and exciting projects. We are also seeing strong market demand across the region, and notably in the southern cone, for Estrella’s high quality drilling and workover services.” said Warren Levy, President and Chief Executive Officer of the Company.”

Source: Company release via Benzinga