LAM.L Regulatory News (LAM)

13 Dec 2007 07:00

Lamprell plc13 December 2007 13 December 2007 LAMPRELL PLC ("Lamprell" or the "Company") ANNOUNCES $175.9 MILLION NEW CONTRACT AWARD Lamprell (symbol: LAM), a leading provider of specialist engineering services tothe international oil & gas industry, is pleased to announce the award of asignificant contract from Scorpion Rigs Ltd., a subsidiary of Scorpion OffshoreLtd. (collectively "Scorpion") for the construction of a LeTourneau Super 116Ejackup drilling rig with a value of US$175.9 million for delivery at the end of2009. New build jackup drilling rig contract This contract is for the construction and delivery of a completely outfitted andequipped, LeTourneau designed, self-elevating Mobile Offshore Drilling Platformof a Super 116E (Enhanced) Class design ("the Unit"). The Unit consists of atriangular hull and three 477 foot truss type legs, each with anelectro-mechanical rack and pinion elevating system, which will allow drillingin depths of up to 350 feet of water. The Unit's primary operating capabilities will include accommodation for aminimum of 105 personnel, a 70 foot cantilever reach with +/- 15 feet oftransverse skidding for the drill floor and a rated drilling depth of 30,000feet. The contract is a lumpsum turnkey contract that covers all aspects of theproject execution. It is expected that the Unit will be delivered at the end of2009. The award of this contract is the result of the exercise of the first of thefour options that Scorpion was granted in July 2007 for the construction ofthese units. This is the second contract between Lamprell and Scorpion for a LeTourneaudesigned drilling rig and represents a significant increase in the order book. Commenting on this contract award Chairman and Chief Executive Officer, PeterWhitbread, said: "We are delighted to continue working with a drilling contractor of the statureof Scorpion in building up their state-of-the-art fleet of ultra-premium jackupdrilling rigs. With our continuing reputation for delivering projects onschedule together with our high standards of quality and safety, we areconfident that Lamprell will continue to meet and exceed the expectations of ourclients. We are also pleased that this major award further extends our growing order bookwhich reinforces our confidence that Lamprell will experience significant growthin its business in 2008 and beyond." Enquiries: Lamprell plc (+44 20 7638 9571) Peter Whitbread, Chairman and Chief Executive Officer David Moran, Chief Operating Officer JPMorgan Cazenove, London (+44 20 7588 2828) Nick Garrett Malcolm Moir Citigate Dewe Rogerson, London (+44 20 7638 9571) Media enquiries: Martin Jackson/Kate Delahunty Analyst enquiries: Scott Fulton Notes to editors • Lamprell, based in the UAE, has played an increasingly prominentrole in the development of the offshore industry in the Arabian Gulf for over 30years, in later years providing specialised services to the offshore oil and gasindustry. • Lamprell's two primary facilities are in Port Khalid, in theEmirate 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 theprincipal services it provides, are: - Upgrade and refurbishment of offshore jackup rigs; - New build construction for the offshore oil and gas sector, includingFloating Production, Storage and Offloading systems and other offshore andonshore structures; and - Oilfield engineering services, including the upgrade andrefurbishment of land rigs. • Lamprell has grown strongly over the last three years, driven bybuoyant conditions in the oil and gas industry and the increase in capacity withthe 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