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The following editorial was featured by the Australasian Drilling Industry Association (ADIA).
According to Nils Ivar Klinge Iversen, CEO of Norwegian directional drilling specialist, and ADIA member, Aziwell, it’s time the industry shifts its focus to cost per target—a change that could unlock significant efficiency, sustainability, and discovery gains.
“Directional drilling isn’t about replacing standard tools—it’s about using smarter ones to put more meters into zones that actually matter,” Nils told Australasian Drilling.
Now expanding into Australia through a joint venture with ADIA member Wireline Services Group, Aziwell is making a strong case that directional core drilling is not only viable, it’s becoming essential.
From scepticism to strong support
Aziwell’s breakthrough came with the AZIDRILL, a tool designed to make directional core drilling more efficient and accessible for field teams. But while the product has been warmly received, Nils is candid about the hurdles in introducing new technology to conservative sectors.
“The biggest challenge with directional drilling technology is to convince the customers that this is an efficient and easy tool to operate. Once our customers have tried it, they have for the most part been amazed about how good the tool performs,” he says.
The company’s Navigator borehole planning software has also seen continuous improvement, with recent upgrades focused on visualizing orebodies and underground infrastructure for more strategic borehole design.
“These features help users better plan their drilling program around what really matters,” says Nils. “That’s part of the broader mission—bringing smarter thinking into every phase of the drilling process.”
Also read: What is directional drilling?
Australia: A fast-growing frontier
Aziwell formally entered the Australian market in mid-2024 via a joint venture with Wireline Services Group, resulting in an initial trial with BHP. That trial led into a full-time contract. Aziwell is now mobilizing to additional projects across the country.
“Given the technology is fairly new to the market, we respect that it will take some time to get a proper market acceptance, but we are strong believers that the earliest adopters will create the most value for themselves,” Nils notes.
Market growth and misconceptions
Nils estimates that directional core drilling is currently used in just 4 to 5 percent of global exploration programs, despite steady growth since 2020.
“The market has shown a robust compound annual growth rate, which we estimate to be in the range of 15 to 20 per cent since 2020,” he says. “We expect this trend to continue, especially because targets are getting deeper and more difficult to reach.”
Yet, persistent misconceptions continue to slow adoption—particularly around ease of use and cost.
“There is a persistent misconception on how expensive it is to operate directional core drilling tools,” Nils says. “The upfront cost may seem expensive at first. But the truth is that it is by far the most cost-efficient method of steering boreholes if you look at the cost per target and per degree deflection.”
This is where Nils’ argument hits home: the industry’s standard metric—cost per metre—is misleading in the context of modern exploration.
“When talking about cost, the cost per metre, which is usually the norm in our industry, is highly irrelevant if the cost per target is high,” he explains. “I hope we will manage to convince both drill contractors and resource companies that the total cost per target is what truly matters.”
He points out that the ability to multi-branch boreholes through directional drilling allows operators to shift drilling effort away from unproductive zones and into high-value geological targets—extracting more core where it counts.
H-size breakthrough and what’s next
Aziwell’s innovation pipeline includes the world’s first H-size directional core drilling tool, which is now entering commercial scale after 18 months of successful field use.
“This tool has already been utilised on projects with great success, but not yet at scale. That will happen now,” Nils says.
It’s a development that could open new opportunities for operators seeking to integrate directional technology into standard-size drilling operations without significant changes to workflow.
Also read: The difference between directional core drilling and horizontal directional drilling
Driving efficiency and sustainability
For exploration programs of suitable scale, the potential upside is compelling. Nils says the technology allows operators to eliminate 20 to 50 per cent of unnecessary metres drilled, which directly translates into sustainability and cost benefits.
“The result is that you get more valuable core faster, you cut a lot of time, and you reduce water and fuel consumption greatly,” he says. “Ultimately, the most important factor in this—which is also the most difficult to quantify—is the potential in saved time, which can be enormous.”
Awareness and collaboration
Aziwell and its Australian partners are focused on raising awareness and educating the market through trade shows, industry media, and social media engagement. The company also remains open to collaboration.
“We currently have a partnership with Wireline Services Group that has established a division called Drill Intelligence that carries out the AZIDRILL directional core drilling services,” Nils explains. “We are always open to connect with institutions to explore how we can create even more value for our industry.”
Final word
Aziwell’s message to the Australian market is clear: don’t judge directional drilling on old assumptions. With the AZIDRILL platform proving both robust and operator-friendly, Nils is focused on changing the narrative—from upfront costs to total value unlocked per target.
“Directional drilling technology allows you to put more meters into zones that actually matter,” he says. “That’s how we shift from just drilling holes to delivering real discovery.”
This article was posted in the august issue of Australasian Drilling Magazine and written By Jamie Wade.
