Magnum Awards Boart Longyear Drilling Contract for Natural Gas Liquids Storage Project

BoartLongyear, the world’s leading integrated exploration drilling services, equipment and performance tooling provider, has been awarded a contract on August 1, 2014 for drilling services at the Magnum NGLs (Natural Gas Liquids) Storage Projectat central Utah’s Western Energy Hub.

Magnumis building the first underground salt cavern NGLs storage facility in the Rocky Mountain region at the site, located 10 miles north of Delta.Development will include the construction of solution-mined storage caverns in a salt domeapproximately 3,000 feet below the natural surface.Initially, thefacility will featuretwo caverns each capable of storing between 1 and 2 million barrels (mmbbl) of natural gas liquids (NGLs) such as propane and butane.

BoartLongyear will use the largest drill rig in its fleet — the LM700 model — to drill two injection wells using the dual-tube flooded reverse-circulation technique.The LM700 is the industry’s only rig capable of drilling to 10,000 feet using the flooded reverse method.

“With our dual-tube flooded reverse drilling technique, we will be able to penetrate the difficult loss circulation zones that have plagued previous drilling projects in this area for years,” said Jason Lamb, U.S./Mexico territory contract manager at BoartLongyear. “We’re proud to be selected to provide drilling services on such a regionally significant project, and we look forward to delivering the expertise and superior service our clients expect.”

BoartLongyear is not new to the Western Energy Hub site. The company previouslydrilled two injection wells and smaller water wells, and provided exploration drilling and pump services.

“Development of the Magnum NGLs Storage Project demands a drilling services partner with world-class equipment and experienced personnel,” said Samuel Quigley, Magnum General Manager.“BoartLongyear was the natural choice to meet the unique challenges of this site.”

To learn more about BoartLongyear Drilling Services, visit: http://www.boartlongyear.com/drilling-services.

About Magnum NGLs Storage Project
Magnum NGLs will be the first underground salt cavern NGLs storage facility in the Rocky Mountain Region. Along with existing production, recent discoveries of expansive shale gas developments, with associated NGLs, have led to an immediate need for commercial-sized storage facilities. Magnum NGLs is centrally located between major production areas in the Rocky Mountain West and Canada and Western processing and consumption areas in California and the Pacific Northwest.

The facility is also strategically located at a crossroads of existing infrastructure to include access to the mainline rail and interstate highway systems. For these reasons, Magnum NGLs is an ideal location for providing a much needed service and paving the way for broader developments in NGLs storage and processing in the Western United States.

Initially the facility will include twosolution mined storage caverns each capable of storing between 1 and 2 million barrels (mmbbl) ofproduct. Cavern sizes at Magnum NGLs, however, can be customized to hold between 1 and 10 mmbbl of product to fit any customer's requirements. The facility will also provide product off-loading and loading options for either truck or rail.
About BoartLongyear

Approaching its 125thYear anniversary in 2015, BoartLongyear is the world’s leading provider of drilling services, drilling equipment, and performance tooling for mining and drilling companies globally. It also has a substantial presence in aftermarket parts and service, energy, mine de-watering, oil sands exploration, and production drilling.

The Global Drilling Services division operates in over 40 countries for a diverse mining customer base spanning a wide range of commodities, including copper, gold, nickel, zinc, uranium, and other metals and minerals. The Global Products division designs, manufactures and sells drilling equipment, performance tooling, and aftermarket parts and services to customers in over 100 countries.

BoartLongyear is headquartered in Salt Lake City, Utah, USA, and listed on the Australian Securities Exchange in Sydney, Australia. More information about BoartLongyear can be found at www.boartlongyear.com. To get BoartLongyear news direct, visit http://www.boartlongyear.com/rssfeed.

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