AAI.L Regulatory News (AAI)

Atlas Development & Support Services Limited / Ticker: ADSS / Index: AIM / Sector: Support Services

28 November 2014

Atlas Development & Support Services Limited

('Atlas Development' or the 'Company')

Operational Update

Atlas Development & Support Services Limited (AIM: ADSS), the African focussed support services and logistics company is pleased to announce a positive update on activities in East Africa. The Company continues to make excellent progress in the development of its business. With the restructuring programme complete, trading is in line with market expectations, with revenues for the year ending 31 December likely to be in the range of US$38-US$40 million compared to US$23 million in 2013.

On the ground, in line with the advancing resource development in the Turkana region, where the Company is currently supporting a number of international companies operating, Atlas Development is increasing its civil engineering activities with a ramp up of activities including increased well pad construction and road and infrastructure build. Furthermore, additional containerised accommodation has been mobilised to support teams working remotely. The development of the logistics hub in Lockichar has commenced with site clearance underway. Once completed, the site, which will include extensive warehousing, will provide improved support and efficiencies for the Company's operations, and at the same time offer logistics support to customers requiring storage and distribution services. This will be a key differentiator to other service providers.

On a broader level, the Company continues to make advancements with regards to increasing its service offering and general capabilities to support resource development in East Africa. As exploration activity continues to increase so does demand for the Company's services. In line with this, strong progress has been made with regards to new contract opportunities, with a number of significant proposals and tenders currently live in multiple countries throughout East Africa.

Carl Esprey, Chief Executive Officer of Atlas Development, said:

"We continue to make excellent progress on the ground, and an annualised revenue of US$38-US$40 million looks highly achievable. The increase of on-ground activity is testament to our much sought after turn-key support service solution, delivered to international standards but by a local company. With the work on our logistics hub currently underway, and extensive development activities elsewhere in the region, we believe this will only improve further.

"Reputation is key and due to our restructuring and established business credentials, we are continuing to receive requests for proposals which we hope to convert into major contracts in the coming months."

** ENDS **

For further information please visit www.atlassupport.com or contact:

Notes to Editors

Atlas Development's core divisions are delineated as follows:

· Atlas Technical: civil engineering, workforce accommodation and construction

· Atlas Services: medical and facilities management

· Atlas Logistics: fuel solutions, storage and transportation

Through these three core divisions, Atlas Development provides turn-key support for a range of major oil & gas exploration and development companies operating across East Africa. The market opportunity for a company such as Atlas Development remains highly attractive, and the Board believe there is considerable opportunity to leverage the Company's established position to further capitalise on the rapidly growing oil & gas exploration and development industry in Kenya.

The Company announced on 13 October 2014, that it intends to dual list on the Growth Enterprise Market Segment of the Nairobi Securities Exchange (the 'Kenyan Listing'), by way of an introduction and private placing being offered solely in Kenya. Completion of the Kenyan Listing will make Atlas Development the first AIM listed company to join the Kenyan exchange and will mark a further important step in the Company's development as it looks to expand its existing support services business in East Africa.