AUG.L Share News (AUG)

(ShareCast News) - Augean's expansion into the southern North Sea was solidified on Tuesday, with the purchase of a new site in Great Yarmouth for its Augean North Sea Services (ANSS) arm.The AIM-traded specialist waste management business noted in a recent trading update that it had entered into a contract in January to provide production waste management and onshore industrial services to a major oil and gas operator.Augean described the contract as an important development, as the group was seeking to access customers and deliver under contracts related to the southern North Sea in the medium term.The new freehold site in Great Yarmouth was linked to the contract, and would enable ANSS to supplement the services already provided to customers in the northern and central North Sea, which would continue to be mainly delivered from Aberdeen."The entry into the southern North Sea represents further progress in our strategy of becoming a leading supplier in the stable market of production waste management and onshore industrial services to major oil & gas operators," said Augean CEO Dr Stewart Davies."The group's customer base continues to expand across a diversified range of sectors, which along with the quality and length of our contracts underpins our position as we move through 2016," he added.Augean said its move of the North Sea services business to the provision of production waste management and onshore industrial services to major oil and gas operators represented a significant diversification to a more stable sector of the marker.The new site, which was purchased from a waste management company and already had the relevant planning and environmental permits, was purchased for £500,000 exclusive of taxes and fees.