28 Aug 2013 07:00
28 August 2013
Creon Resources Plc
("Creon" or "the Company")
Creon ready to "strike steel" in China
Rig construction commences
Creon, the Aim-listed resource and resource infrastructure focused investment company is pleased to announce that, Jiangsu Yangzijiang Offshore Engineering Co. Ltd. ("YZJOE"), in which Creon has a 18.6% stake through its joint venture with China's third largest ship building group, Yangzijiang Shipbuilding (Holdings) Pte Ltd (SP:YZJ), is ready to "strike steel" on the construction of its 350ft Le Tourneau "super enhanced 116e" design self-elevating Mobile Offshore Jack-up Drilling Rig.
This follows seven months of detailed technical engineering work, carried out by YZJOE in conjunction with Explorer 1 Limited (100% owned by Mena Offshore Investments Limited (MENA) and managed by Offshore Logistics (Asia Pacific) Pte Ltd (OLAP)). The rig is expected to be ready for commissioning within two years.
"Striking steel" in offshore marine construction parlance means that the detailed engineering phase has been successfully completed and execution of the underlying project can now begin at its joint venture yard based in Taicang, outside Shanghai.
Glen Lau, CEO of Creon, stated:
"Self-elevating jack up rigs such as this, built to the most modern and stringent international engineering standards are in short supply and high demand, particularly with the oil majors. They also have the capability to deliver a valid 'working life' of up to 20 years.
"With ever more demanding technical and accommodation specifications, the rig has to be at least semi-automated and have the ability to meet today's deeper drilling requirements, whilst of course at a highly competitive price".
Creon is pleased that this joint venture with China's largest non-governmental shipyard has helped it diversify into the offshore marine oil and gas industry which has strong prospects as the deeper basins are now generally all ocean-based. The offshore marine industry also encompasses the offshore wind farm market and the consortium is already in discussion with some prospects on how best to capitalise on this further market opportunity.
For further information please contact:
Creon Resources Plc Glen Lau (CEO)
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Tel: +65 6224 6766 Tel: + 44 20 7583 8304
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Nominated Adviser & Broker Daniel Stewart Paul Shackleton/James Felix
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Tel: + 44 (0) 20 7776 6550
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About Creon Resources Plc
Creon Resources Plc is an investment company which invests principally in the resources and resources infrastructure sectors. Creon has a deep and broad global network and wide contact base in these sectors, including in East and South East Asia and the Middle East which it leverages to source and make investments. These sectors exhibit high growth and are strategically important. Creon is a proactive investor which assists its investee companies to grow by providing investment, expertise and contacts.