Origin Energy Contract Sees Debut Of "Best Rig" In Southern Hemisphere - November 2007

In an exciting, new initiative, Mitchell Drilling Corporation (MDC) has created what they believe is the best rig of it's kind, to deliver efficient and successful coal seam methane drilling outcomes for their long term client, Origin Australia, at drilling locations in and around Roma, western Queensland, Australia.

Designated Rig-152 when launched, the rig has a drilling depth capacity of 2000 metres, is modular, fully automated and will be ideal for coal seam methane (CSM) production wells and water wells. In addition, it is well suited for shallow oil and gas drilling and to produce large diameter vent holes for the mining industry.

Especially made to order for Mitchell Drilling Corporation by Drillmec in Piacenza, Italy, the technology and innovation implicit in the rig and Drillmec's close proximity to the headquarters of the "Raging Bull" automotive legend has seen it described by those "in the know" in the industry, as the Lamborghini of drilling rigs.

Subsequent to its delivery from Europe, the MDC team then proceeded to a total work over on the rig, creating a totally customised unit that will deliver on the challenging client brief.

"We have incorporated a complete, customised improvement package into this state-of-the-art European manufactured rig to ensure it delivers the best coal bed methane drilling operation in the Southern Hemisphere. Origin and ourselves are very excited by the prospects it offers", Mitchell's CEO Nathan Mitchell said.

Rig-152 – officially launched on the 29th October 2007 - will be deployed to work wells generally located in the Denison Trough and Surat / Bowen Basins. However Origin has flagged that Rig 152 may be utilized anywhere in mainland Australia subject to their needs analysis over the three (3) year contract term.

The rig's significant customisation and consequent enhanced capabilities translates into a totally reliable rig, tailored for Australian conditions and with the added flexibility to meet the specific needs of a variety of vertical drilling assignments.

The individual specifications of this customised rig are impressive by world industry standards.

It's telescopic mast can handle 4.0 inch Range 2 drill pipe and Range 3 casing. The unit offers a depth capacity of 2000 metres 100,000kg load capacity. The two (2) Sullair air compressors deliver 1100 cfm / 500 psi & 1350 cfm /350 psi respectively and are mounted on tri axle trailer complete with walkways and manifold.

It also offers a modular, trailerised mud system and a 9"/3000 psi blow-out preventer stack. The mud pumps are two (2) RS-800, 700hp Triplex pumps driven by Cat C-18 DITA engines, mounted on dual axle trailers - the generator sets are two (2) Allight 350's – 350KVA, 50Hz, 400V.

The unit's innovative qualities also extend to its safety, environmental management and operating technologies.

The unit occupies a small footprint relative to it's superior performance which means lower costs and less environmental disturbance.

As well, safety and worker amenity are key features of the rig's main operations which are controlled from a silenced dog box on the rig floor - all controls for drilling operations, power engines, mud pumps, make-up and break-out automatic sequences, weight indicator, etc are easily operated from this "control centre".

"This is a genuine investment by Mitchell Drilling to offer a unit that can provide real value both operationally and economically to our clients and it is in keeping with our long term goal of keeping one step ahead of what is best practice in terms of rig technology", Mr Mitchell said

"We are so proud to commission this rig – it offers such a powerful package and we can't wait to demonstrate it's punch for our client Origin, when it gets out into the field", he said.