08/21/2012 02:08 EDT | Updated 10/21/2012 05:12 EDT

Energold announces $45 million in new oil and gas drilling contracts

VANCOUVER - Energold Drilling Corp. says it has recently been awarded several long-term service contracts worth a total of about $45 million per year.

The contracts with Energold's energy drilling division, Bertram Drilling Corp., are with major oil and gas companies active in Western Canada.

Vancouver-based Energold (TSXV:EGD) expects Bertram to reach $45 million to $55 million in revenues in 2012.

It aims to grow the division by 25 to 50 per cent in 2013 over 2012 revenues.

"Energold's energy drilling business has provided the company with growing diversification of revenue, while also helping to offset some seasonal factors associated with mineral drilling activity that tends to occur mostly during the second and third quarters," Energold said in a release.

"While these energy drilling contracts are for year-round activity, the majority of the drilling services will be conducted during the winter drilling season (January to April)."

The company says it believes Bertram has enough equipment to fulfil its contracts, but it's looking at ways to grow organically and through acquisitions to meet growing demand in North America and seek out new customers in the Middle East and Latin America.

Energold is a specialty drilling company that services the mining, energy and manufacturing sectors in 22 countries.

Energold shares soared 11 per cent to $3.92 in afternoon trading on the Toronto Stock Exchange.