CANNING VALE, Western Australia--(BUSINESS WIRE)--DDH1 Drilling Pty Ltd (“DDH1” or “the Company”), a leading deep directional drilling services company, today announced that it has received an investment from funds managed by Oaktree Capital Management, L.P. (“Oaktree”), a leading global alternative investment management firm. DDH1 will continue to advance its current strategy with strategic support from Oaktree that will allow it to provide expanded capacity and capabilities to its customers. DDH1 was advised by Novo Capital and terms of the Oaktree investment were not disclosed.
DDH1 is a leading provider of deep directional mineral drilling services used to identify and extend resources, reserves and mining plans for Australia’s exploration and mining industry. The Company designs complex drilling programs delivered by highly skilled rig operators and has a strong history of satisfying customer requirements. The Company’s drill rig fleet is modern, standardized and the largest in Australia for deep directional mineral coring.
Co-founders of DDH1, Murray Pollock and Matt Thurston, will continue in their roles as Chief Executive Officer and Chief Operating Officer, respectively. Together they bring over 70 years of experience in the industry and have pioneered deep directional drilling technologies in Australia. “DDH1 will continue to be managed by its founding directors and long term staff, and we remain committed to our strategy of being the drilling contractor and employer of choice in the mining and exploration industry,” said Mr. Pollock. “With the support of Oaktree’s capital and expertise, we intend to focus on growing our business organically, and we will also carefully consider consolidating similar niche operators to gain expanded capacity and provide our customers with enhanced drilling services as industry demand recovers.”
Byron Beath, Managing Director at Oaktree, commented: “Throughout the recent mining downturn, there has been significant underinvestment in the capacity of the Australian drilling services industry due to low demand, competitive pricing and numerous insolvencies. During this period, DDH1 has continued to invest in its capacity and has consolidated its market-leading position in its targeted service. Oaktree’s investment will further enable DDH1 to grow to meet the demand from its customers.”
Oaktree has extensively researched the Australian drilling landscape in light of the cyclical stress the sector has experienced, and has identified DDH1 as a leading operator in the sector with a disciplined focus on services that are critical to the sustainability of a mining operation. “The fact that DDH1 has been able to survive and emerge stronger during the recent downturn is a validation of the high quality and essential service that DDH1 provides to its clients,” Mr. Beath added.
About DDH1
DDH1 is a leading deep directional drilling services company servicing Australia’s mining and exploration industry. Founded with one diamond core drilling rig in 2006, as of 30 June 2017 the company has a fleet of over fifty diamond coring rigs with operations spread across Western Australia, Northern Territory and Australia’s east coast. DDH1 provides custom designed drilling programs which deliver mineral core samples through a standardized rig fleet and highly skilled rig operators. The company has pioneered deep directional drilling techniques in Australia and has a leading market position by capability, fleet size and reputation. For additional information, please visit DDH1’s website at www.ddh1.com.au.
About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with US$100 billion in assets under management as of March 31, 2017. The firm emphasizes an opportunistic, value-oriented and risk- controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 18 cities worldwide, including a Sydney office established in 2016. For additional information, please visit Oaktree's website at www.oaktreecapital.com.
