News

November 04, 2008

Cabo Drilling Shows Resilience, Thanks To The Long-Term Planning Of Its Founder

By Charles Wyatt

No mistaking what Cabo Drilling does – it’s in the title. The company has four well-placed divisions in Canada from which it provides mining related and specialist drilling services down into the States as required. The company, under the energetic management of founder John Versfelt, has also spread its wings into Mexico, Panama, Spain and the Balkan states, and financial results just announced for the fourth quarter and for the whole year to end June 2008 show the wisdom of this expansion. In the fourth quarter revenue rose by C$2.95 million to C$14.63 million when compared with the same quarter in 2007, and for the full year it rolled out at a record C$58.65 million as against C$38.45 million.

As John Versfelt points out, Cabo has added a further seven drills to its international fleet since June and the international divisions are now operating 24 drills out of a total of 111 drills in the company. In the year to end June 2007 revenue from the international divisions accounted for only five per cent of revenue  compared with 19 per cent last year and this trend is expected to continue as these divisions now have more drills. This has to be seen as a very shrewd move, as the...