18 Oct 2010 14:27
News Release
EDC signs a Letter of Intent with Lamprell Plc to build a new jack up drilling rig
MOSCOW, October 18, 2010 - Eurasia Drilling Company Limited ("EDC" or the "Company" - LSE: EDCL) announced today that it has entered into a Letter of Intent with Lamprell Plc to build a new jack up drilling rig to be used in its Caspian Sea operations. The new jack up rig will be a high-spec Letourneau Super 116 E design, the hull and related components are to be pre-fabricated by Lamprell in its Sharjah facility. The remaining component fabrication, final assembly and commissioning will be performed at a shipyard in the Caspian Sea. The rig will be designed to operate in water depths to 350 feet (106 meters) and drill to sub-sea depths of 30,000 feet (9,150 meters). Construction is expected to be completed at the end of 2012.
EDC's CEO Dr. Djaparidze said: "The demand for jack-up rigs in the Caspian Sea has reached a level that we are certain that this new high spec rig will be fully contracted for several years at favorable operating rates, when it is commissioned. We are in advanced discussions with several of our clients who wish to have priority access to the rig by providing early investment in the construction phase of the new build. Therefore we have decided to pull the trigger on this project now in order to take advantage of the 2011 weather window for shipping the pre-fabricated components to the Caspian Sea via the Volga Don Canal. We are very confident that the time is right for us to proceed with this investment."
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EDC is the largest independent provider of onshore drilling services in Russia, as measured by the number of meters drilled, providing onshore integrated well construction services and workover services. In addition, the Company provides offshore drilling services in the Caspian Sea. The Company offers its onshore integrated well construction services and workover services to local and international oil and gas companies primarily in Russia and its offshore drilling services to Russian and international oil and gas companies in the Russian, Kazakh and Turkmen sectors of the Caspian Sea. The Company is traded on the London Stock Exchange under the symbol "EDCL".
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For further information, please contact:
Kim L. Kruschwitz, VP Investor Relations
+44 (0) 207 717 9707
investors.relations@eurasiadrilling.com
October 18, 2010
Some of the views expressed in this document may constitute "forward looking statements" that involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.