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Hughes Drilling Director Increases Shareholding On Market

Hughes Drilling (ASX: HDX) non-executive director Barry O'Connor has increased his shareholding through the purchase of a further 1.5 million shares on market.

O'Connor acquired the shares for a total consideration of A$55,857, providing an average entry price of about $0.037 per share.

He now has an indirect shareholding of 2.5 million shares and a direct shareholding of 2 million shares.

Hughes Drilling recently secured an extension to its existing contract with Leighton Contractors' Mining Division for blast hole drilling at the Sonoma Coal Mine in Queensland's Bowen Basin.

The contract, which comprises an initial two years plus a one year extension option, will generate in excess of A$20 million of revenue over its full life.

The company is also on track to add 11 to 13 more rigs during the 2013 financial year, with rigs only added against secured and generally long term contracts in long life mines, indicating a strong growth profile.

The blast hole rig fleet as at 30 June 2013 is expected to be 38 to 40 rigs, compared to 27 rigs at 30 June 2012, marking a 40% to 48% increase.

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