LAM.L Regulatory News (LAM)

10 Jul 2007 07:01

Lamprell Plc10 July 2007 10 July 2007 LAMPRELL PLC ("Lamprell" or the "Company") ANNOUNCES SCORPION INTERNATIONAL LTD AS CLIENT FOR $168 MILLION NEW CONDITIONAL CONTRACT AWARD Lamprell (symbol: LAM), a leading provider of specialist engineering services tothe international oil & gas industry, is pleased to confirm that the conditionalUS$168 million contract announced on 6 July 2007 is with Scorpion InternationalLtd., a subsidiary of Scorpion Offshore Ltd. ("Scorpion"). This is for theconstruction of a LeTourneau Super 116E jackup drilling rig. It is conditionalupon Scorpion securing certain financing requirements, which are expected to becompleted within the next thirty days. In addition to the award of the first unit, options have been agreed for afurther four units which can be exercised over an 18 month period from December2007. These contracts will be subject to negotiation, allowing for flexibilityto take into account any potential cost variations. This is the first contract between Lamprell and Scorpion and represents afurther strengthening of Lamprell's blue chip client list that, among others,includes BG Group, Noble Drilling, SBM Offshore, Saipem and Nabors DrillingInternational. Commenting on this contract award Chairman and Chief Executive Officer, PeterWhitbread, said: "We are delighted to be working with a drilling contractor of the stature ofScorpion in building up their fleet of state-of-the-art ultra-premium jackupdrilling rigs. It is a testament to Lamprell's reputation in this premium sectorthat we have been able to secure this work and, critically, to be considered forfuture projects. Contract awards of this nature underpin our growing confidencein the prospects for Lamprell, as we highlighted in our recent tradingstatement." Enquiries: Lamprell plc (+44 20 7638 9571)Peter Whitbread, Chairman and Chief Executive OfficerDavid Moran, Chief Operating Officer JPMorgan Cazenove, London (+44 20 7588 2828)Nick GarrettMalcolm Moir Citigate Dewe Rogerson, London (+44 20 7638 9571)Media enquiries: Scott Fulton/Kate DelahuntyAnalyst enquiries: Nina Soon Notes to editors • 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 gas industry. • 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 which are in the UAE. • 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 refurbishment of land rigs. • Lamprell has grown strongly over the last three years, driven by buoyant conditions in the oil and gas industry and the increase in capacity with the opening 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 Exchange