Tom Browne Drilling Services went into receivership and administration in April and there has been liquidation to try and pay back creditors.

Mitchell Services Limited purchased 29 rigs at a cost of $9.5m and in a statement said the investment was a prudent one in the current economy.

"The acquisition price for 29 rigs and associated equipment of $9.5m compares with an independent replacement valuation of $52.6m. This is a standout counter-cyclical investment at a time when many companies within the mining services sector have been struggling with high costs and declining revenues," it said.

The statement added the purchase would "strengthen Mitchell Services' market presence and expand its geographical footprint to position the company for growth as a leading provider in the eastern states' drilling market."

Receiver for Tom Browne Drilling Services, Shaun Fraser, said the asset sale was the best outcome under the circumstances. He confirmed the majority of the company's 75 workers, who were based in Dubbo and Mt Isa, had lost their jobs.

"The situation Tom Browne Drilling found themselves in is indicative of the tough times in the resource sector. Unfortunately most of the employees had to be made redundant but there is still one crew that is working on a contract in north Queensland," Mr Fraser said.

It is not known whether Mitchell Services will also be looking to employ some of the former Tom Browne Drilling Services employees.

Tom Browne Drilling Services was founded in 2005, according to the company's website, which describes it as "one of the leading figures in the drilling industry, both in Australia and worldwide".

Mr Browne was formerly the owner of Pontil Drilling, which he founded in 1976, until the company was sold in the 1990s.

Mitchell Services Limited were contacted for comment but didn't reply before deadline.