Oil & Gas Drilling Company Seeking Loan in Madang, Papua New Guinea

- The company was formed in the 1980s by foreigners and in 2014 was bought by a local.

- Since the new management has been trying to acquire Petroleum Development Licence but has not succeeded due to lack of funds.

- Now the company has only participated in a handful of water boring contracts with the local level government and local business houses.

- Recently we completed a sub-contract to do road and bridges geotechnical drilling on the Highlands Highway.

- The business has experienced high growth due to the new contracts and jobs received in this financial year.

- Currently, the business earns the majority of its revenue from geotechnical drilling & bore water drilling.

- The oil and gas drilling has not been started yet.

- The typical duration of a drilling contract is 1-3 months.

We do the following different types of drilling: geotechnical drilling, bore water drilling, water reticulation, high-pressure dewatering, diamond drilling, mud rotary drilling, reverse circulation drilling, air core drilling & drill, and blasting. We are also planning to start oil and gas drilling.

Physical assets include ten operational drill rigs and backup parts, one Isuzu 5-tonne crane truck, one Toyota Hilux dual cab, an office and workshop complex base, and the land it is on.

Located within the township of Madang in an industrial part with 2 big workshops for drill rig storage and backup parts and loading docks. Office complex also available within this 1-hectare area along with machining shop. Storage containers are available within the complex that caters to storage and a server room. A radio tower is located in the heart if the complex for communication purposes. The land and building are owned by the company.

The company is entirely owned by a mother company. This mother company is owned by 1 individual (80%) and his 2 sons (20% each). The mother company has bought this drilling company and has developed plans to purchase exploration licenses with the department of Mining & Petroleum here in PNG but unfortunately, the process is lengthy.

The company has some bank loans and outstanding liabilities.