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Capital Drilling Wins African Contracts, Expands Fleet

By Michael Auslen LONDON--Capital Drilling Ltd. (CAPD.LN), a U.K. drilling services firm, said Tuesday two contracts in Africa, one new and one extension, will add four rigs to its global fleet. The company will send one underground diamond rig to Kinross Gold Corp. (KGC) for use in its Chirano gold mine in Ghana, where Capital Drilling has operated since June 2011. It expects the rig to arrive in the third quarter of the year. Additionally, two rigs are in transit and a third has arrived at the Lumwana mine in Zambia, operated by Barrick Gold Corp. (ABX), where Capital Drilling has worked since 2006. This expansion includes two deep hole diamond rigs and one reverse circulation rig. Financial details about these contracts were unavailable. The company's fleet includes 90 rigs, five more than last year. "The current expansion of the fleet underpins our strategy of focusing on organic growth with blue chip and major mining companies, and operating on long life and robust mining projects," Chief Executive Geoff Fardell said in a statement. Shares closed Monday at 62.0 pence. Write to Michael Auslen at michael.auslen@dowjones.com

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