6th May 2008 07:03
Lamprell plc06 May 2008 LAMPRELL PLC ("Lamprell" or the "Company") LAMPRELL ANNOUNCES DEEP WATER QUAY SIDE FACILITY IN THAILAND AND $26 MILLION OF CONTRACT AWARDS Lamprell (ticker: LAM), a leading provider of specialist engineering services tothe international oil & gas industry, is pleased to announce that it has signeda lease for a drilling rig upgrade and refurbishment facility in Thailand and toprovide the following update on contracts secured in March and April 2008. Deep water quay side facility in Thailand Lamprell is very pleased to announce that it has signed an initial 5 year leasefor a 46,950m2 facility with 158 meters of exclusive deep water quay side inSattahip, Thailand. The Company believes this expansion provides an excellentopportunity to transfer the skills and reputation Lamprell has built over manyyears, through its operations in the United Arab Emirates, to a region whichoffers a significant fleet of jackup drilling rigs owned by predominantly thesame group of clients that operate in the Middle East. The Company will commencethe enhancement of the facilities shortly and anticipates executing the firstrevenue generating project in the 4th quarter of 2008, with full operationsexpected to commence in 2009. Jackup drilling rig upgrade and refurbishment contracts Lamprell is also pleased to announce that during March and April 2008, contractswere secured from several clients to undertake eight jackup upgrade andrefurbishment projects. These projects, to be undertaken for Maersk Contractors,Aban Pte Ltd., Rowan Companies Inc., Diamond Offshore Drilling Ltd., TransoceanOffshore International Ventures Ltd., Transocean Mediterranean and Red SeaDrilling Ltd. and Hercules Offshore Middle East Ltd., will be executed atLamprell's Sharjah and Hamriyah facilities. The combined initial contract valueis $25.8 million, with the final account value conservatively forecast to bebetween $50 million and $55 million, as significant work scope growth isanticipated on several of the projects. Commenting on the announcement, Chief Executive Officer, Peter Whitbread, said: "We are delighted to announce Lamprell's next stage of organic growth, having secured a new rig upgrade and refurbishment facility in Thailand which we expect to develop throughout 2008 and which has the potential to deliver substantial revenues from 2009 onwards. We are also pleased to announce these recent contract wins with both existing and new clients and we believe this reflects our strong reputation for quality and service. Although the initial contract value is $25.8 million, we expect the final account value to be more than double this once the final scopes of work are completed." - Ends -Enquiries: Lamprell plc +44 (0) 207 153 1547Peter Whitbread, Chief Executive OfficerDavid Moran, Chief Operating OfficerScott Doak, Chief Financial Officer JPMorgan Cazenove, London +44 (0) 207 588 2828Malcolm MoirNick GarrettLaurence Hollingworth M:Communications, LondonPatrick d'Ancona +44 (0) 207 153 1547Charlotte Kirkham +44 (0) 207 153 1531Georgina Briscoe +44 (0) 207 153 1548 Notes to editors o Lamprell, based in the UAE, has played an increasingly prominent role in the development of the offshore industry in the Arabian Gulf for over 30 years, in later years providing specialised services to the offshore oil and gasindustry. o Lamprell's two primary facilities are in Port Khalid, in the Emirate of Sharjah, and in the Jebel Ali Free Zone, in the Emirate of Dubai, both of whichare in the UAE. o The principal markets in which Lamprell operates, and the principal services it provides, are: • Upgrade and refurbishment of offshore jackup rigs; • New build construction for the offshore oil and gas sector, including Floating Production, Storage and Offloading systems and other offshore and onshore structures; and • Oilfield engineering services, including the upgrade and refurbishmen of land rigs. o Lamprell has grown strongly over the last four years, driven by buoyantconditions in the oil and gas industry and the increase in capacity with theopening of its facility in the Jebel Ali Free Zone in 2002. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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