Under the terms of the deal, EDA will provide a drill rig and drilling services for a period of one year.

The contract scheduled to commence in April this year has an option to be extended for another 12 months.

Ausdrill said it has invested in new drill rigs and associated equipment to pursue opportunities in the coal seam gas sector.

In June 2011, EDA entered into a contract with Santos for the provision of coal seam gas production and exploration drilling services, with the works being undertaken in Central Western Queensland.

Ausdrill is a mining services company.