CHAIRMAN ’S REPORT
5
Director of the Clough Group and a highly experienced and talented executive. Richard has
appointed an alternate director, Mr Chris Sutherland, a senior Clough Executive, with
engineering qualifications and associated business skills to assist him.
Captain Jim Carver, Mermaid’s founder continues to play a significant role in Mermaid’s operations,
paying particular attention to our business at sea. Under 20 years of Jim ’s leadership, Mermaid
developed an enviable reputation as a “can do” company, and in our drive for new engineering
expertise and professionalism, we have no intention of allowing that attitude to be lost.
Last year we identified Broome as our next strategic position. No oil and gas work had been
supported out of Broome for seventeen years and with the valuable cooperation and assistance
of the Broome Port Authority, we secured Inpex, the large Japanese resource company as our first
client. The base was then established early this year. 
A new focus has developed in the Browse Basin and it is pleasing to report that after only seven
months operation, our Base is profitable, housing Inpex, BHP , Woodside and Sedco in support
of their current drilling programs. All the holes drilled from the Broome Base have been
designated as commercial finds by the explorers and the very major increase in the reserves at
Brecknock, Woodside’s permit 500 kilometres north of Broome creates optimism for future
production based in the Broome area.
Darwin was next on our list, enabling involvement in Timor Sea oil and gas activity. The Bayu
Undan project operated by Phillips, is well advanced and will impact Darwin ’s offshore activity
quite soon. Pursuing the formula for a strategic sea/land interface, we reached agreement with
Perkins Shipping in Darwin, to set up an office at their Frances Drive facility. Perkins Shipping
is synonymous with Darwin’s history. Set up by V .B. Perkins in the late 40 ’s, it has grown to
significant size, operating its ships across the top of Australia and into South East Asia. There
are many synergies which Mermaid shares with Perkins and we look forward to developing our
Darwin business in close association with that fine old Company.
Our ambitions for the support of the oil and gas industry now go beyond bases and vessels. Early
in the current financial year, Mermaid acquired 50% of the OIS MOC Joint Venture Pty Ltd, to
be paid for by the issue of 800,000 Mermaid shares. OIS MOC owns the highly successful labour
hire business operated by Kevin Ponga and Rick De Franck. Kevin Ponga is now General
Manager of Mermaid Labour & Management Pty Limited and Mr De Franck becomes a Director.
With their reputation and talent added to Mermaid’s experienced team, this labour hire
company has become a significant force and can be expected to be in the final when major
labour hire contracts are let.