LAM.L Regulatory News (LAM)

 27 May 2014

LAMPRELL PLC("Lamprell" and with its subsidiaries the "Group")

MULTIPLE-RIG CONTRACT AWARD

Lamprell (ticker: LAM), a leading provider of diversified engineering and contracting services to the onshore and offshore oil & gas and renewable energy industries, is pleased to announce that it has received a new contract award from a subsidiary of Shelf Drilling, Ltd. ("Shelf Drilling"), for the construction and delivery of two high specification, LeTourneau-designed, self-elevating Mobile Offshore Drilling Platforms of a Super 116E (Enhanced) Class.

The two jackup rigs, designed through collaboration between engineering and operations personnel from Shelf Drilling, Shelf Drilling's customer and Lamprell, will be capable of operating in water depths of up to 350 feet and will be used in constructing wells with maximum drilling depth of 30,000 feet. The rigs will feature fit-for-purpose offshore drilling technology, as well as accommodation for up to 160 people.

Lamprell will fabricate both jackup rigs in its Hamriyah yard, located in the United Arab Emirates, and they will be among the first to benefit from the productivity improvements that Lamprell is in the process of implementing. Lamprell is scheduled to deliver the first rig in Q3 2016, while the second rig is expected to be delivered in Q2 2017. The rigs are being constructed for operations in South East Asia. This new contract is valued at more than US$ 370 million.

James Moffat, Chief Executive Officer, Lamprell, said:

"We are delighted to be announcing this project win from Shelf Drilling for the construction of two new build jackup rigs, particularly as Shelf Drilling is a new client for the Group. This is also our second multiple-rig contract award with a major international drilling contractor in the space of a month, demonstrating that the Group's strong project execution in its core markets is being recognised. It also reinforces Lamprell's position as a leading fabricator for jackup rigs and our highly attractive proposition to clients.

We look forward to working with Shelf Drilling in support of their new build project."

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