Resources round-up: Capital Drilling, Kirkland Lake, Nostra Terra

Nostra Terra, an oil and gas producer, has begun drilling on the third horizontal well in Oklahoma, while the first two have completed drilling and are awaiting completion in the next few weeks. The second well encountered some technical difficulties although these were overcome. Drilling of the Bale Creek first horizontal well has now been finished and it is anticipated that the well will also be completed within the coming weeks.

By MoneyWeek

published 17 May 2012

Capital Drilling Limited, which operates in the emerging and developing markets, reported record first-quarter revenues of $36m, up 31% year-on-year for the first three months of 2012. Monthly average revenue per operation rig increased by 26% year-on-year to $186,000, while rig utilisation was 75%, down five percentage points compared to the same period the previous year. "Despite global uncertainty, the demand environment for quality drilling services has continued to be strong in 2012 with only a slight moderation being experienced in the first quarter," the firm said.

Gold miner Kirkland Lake has reported full-year production for the year ended April 30th of 281,634 tons of ore at a head grade of 0.37 ounces of gold per ton and a recovery of 96.13% to produce 100,275 ounces of gold, in line with the company's revised guidance. Ounces produced during the year rose 22% compared to the previous year, while ounces sold jumped 19.5% from 78,809 to 97,888. Tons produced soared 35% from 207,322 to 281,364. The recovery rate was stable year-on-year at 96.13 compared to 96.4% the previous year.