LAM.L Regulatory News (LAM)

1 Feb 2007 12:55

Lamprell Plc01 February 2007 1 February 2007 LAMPRELL PLC ("Lamprell" or the "Company") ANNOUNCES US$ 224 MILLION OF CONDITIONAL NEW CONTRACT AWARDS Lamprell plc, based in the United Arab Emirates and listed on London AIM(symbol: LAM) is a leading provider of specialist engineering services to theinternational oil & gas industry. Lamprell is pleased to announce the award oftwo significant conditional contracts from Seajacks International Limited ("Seajacks"), with a combined value of US$ 224 million. The contracts are subject to Seajacks securing adequate financing. The contracts are for the construction of two harsh environment special purposeself propelled four legged jackup vessels, named liftboats. The vessels consistof a hull, four truss type legs and four electric rack and pinion jackingsystems and will have a DP-2 dynamic positioning system using four propellerdriven thrusters, as well as a main crane with a lift capability of 300 tonnesand a smaller 50 tonne auxiliary crane. The vessels will be used for wellservices and the repair, maintenance, modification, installation anddecommissioning of offshore facilities in the UK, Dutch and Danish sectors ofthe Southern area of the North Sea. The two contracts, each for US$ 112 million, are lumpsum turnkey contracts andwill cover all aspects of the project execution. It is expected that the firstunit will be delivered to Seajacks in early 2009 with the second unit followingfour months later. In addition to the awards for the first two units, Lamprell and Seajacks haveagreed options for a further three units to be exercised over an 18 month periodfrom February 2007. These contracts will be subject to negotiation, allowing forflexibility to take into account any potential cost variations. Commenting on the award of these contracts, David Moran, Chief OperatingOfficer, Lamprell said: "These significant contracts are a major step forward for Lamprell. Theyrepresent the planned expansion of our business activities to larger, moreprestigious projects in the new build arena, drawing upon our expertise in thejackup construction market. At the same time we are now delivering on ourpromise of greater visibility of revenue with projects now extending into 2009and potentially 2010, if the options for additional units are exercised." Enquiries: Lamprell plc. (+9716 528 2323) Peter Whitbread, Chairman and Chief Executive Officer David Moran, Chief Financial Officer and Chief Operating Officer Citigate Dewe Rogerson, London (+44 207 638 9571) Media enquiries: Martin Jackson/George Cazenove Analyst enquiries: Nina Soon NOTES TO EDITORS • Lamprell, based in the UAE, has played an increasingly prominent role in the development of the oil & gas industry in the Arabian Gulf for over 30 years, in later years providing specialised engineering services to the 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 ("FPSO") 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 four 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. • Lamprell joined AIM, a market operated by London Stock Exchange plc, on 16 October 2006. This information is provided by RNS The company news service from the London Stock Exchange