News for 'DPDW' - (Deep Down Receives $11.1 Million Delba III Buoyancy Contract)
HOUSTON, Nov 25, 2008 /PRNewswire-FirstCall via COMTEX/ -- Deep Down, Inc. (OTC
Bulletin Board: DPDW) today announced that it has received an executed $11.1
million contract from Delba Drilling International Cooperatie U.A. to supply and
install the deepwater marine drilling riser flotation system for the new-build
Delba III semisubmersible drilling rig.
The original letter of intent, initially estimated at $9 million, was received
May 23, 2008. The increase in the value of the contract is reflective of
engineering changes to satisfy additional lift requirements. The Delba III
semisubmersible drilling rig is rated to drill in 2,400 meters of water and is
readily upgradeable to 2,700 meters. The Delba III has long-term contracts to
drill in Brazilian waters. The rig set of flotation for the Delba III is
scheduled to be delivered by early 2010.
The manufacturing requirements under the Delba III contract will be managed by
Flotation Technologies, a Deep Down subsidiary. The installation of the drilling
riser flotation system will be managed by Deep Down (Delaware), also a Deep Down
subsidiary.
Delba International has secured financing for the construction of the Delba III
semisubmersible drilling rig. Deep Down is now focused on achieving a successful
contract execution on the Letter of Intent for the Delba IV semisubmersible
drilling rig, which was announced on June 6, 2008.
"Significantly, Delba International recognizes the benefits of our innovative,
newly-engineered deepwater flotation system which provides greater durability at
even greater depths," commented Ronald E. Smith, Deep Down's president and chief
executive officer. "This innovation is embodied in our patent-pending
CoreTec(TM) drilling riser buoyancy modules, a product of Flotation
Technologies, for the offshore drilling industry. The CoreTec(TM) drilling riser
buoyancy modules provide a more durable, longer lasting, and cost effective
buoyancy solution for our customers."
"We chose Deep Down to satisfy our buoyancy requirements on the Delba III for
two principle reasons. We believe the highly engineered CoreTec(TM) modules
provide a superior and cost-effective solution with its demonstrated durability
and longevity at ultra high ocean depths. A second, and equally important
consideration, is Deep Down's long-standing reputation for providing exemplary
installation services of all types of equipment in offshore operations at any
depth," commented Drilmar Monteiro, Delba Drilling International Cooperatie U.A.
"We anticipate continued use of this solution in our Brazilian operations, as we
have a significant backlog of rigs all requiring an effective and durable
buoyancy solution for deepwater operations."
About Deep Down, Inc.
Deep Down specializes in the provision of innovative solutions, installation
management, engineering services, support services, custom fabrication and
storage management services for the offshore subsea control, umbilical, and
pipeline industries. The company fabricates component parts of subsea
distribution systems and assemblies that specialize in the development of subsea
fields and tie backs. These items include umbilicals, flow lines, distribution
systems, pipeline terminations, controls, winches, and launch and retrieval
systems, among others. Deep Down provides these services from the initial field
conception phase, through manufacturing, site integration testing, installation,
topside connections, and the final commissioning of a project.
The Company's ElectroWave subsidiary offers products and services in the fields
of electronic monitoring and control systems for the energy, military, and
commercial business sectors. ElectroWave designs, manufactures, installs, and
commissions integrated PLC and SCADA based instrumentation and control systems,
including ballast control and monitoring, drilling instrumentation, vessel
management systems, marine advisory systems, machinery plant control and
monitoring systems, and closed circuit television systems.
The Company's Mako subsidiary serves the growing offshore petroleum and marine
industries with technical support services, and products vital to offshore
petroleum production, through rentals of its remotely operated vehicles (ROV),
topside and subsea equipment, and diving support systems used in diving
operations, maintenance and repair operations, offshore construction, and
environmental/marine surveys.
Flotation Technologies engineers, designs and manufactures deepwater buoyancy
systems using high-strength Flotec(TM) syntactic foam and polyurethane
elastomers. Flotation's product offerings include distributed buoyancy for
flexible pipes and umbilicals, drilling riser buoyance modules, CoreTec(TM)
drilling riser buoyancy modules, ROVits(TM) buoyancy, Hydro-Float mooring buoys,
Stablemoor(TM) low-drag ADCP deployment solution, Quick-Loc(TM) cable floats,
Hardball(TM) umbilical floats, Flotec(TM) cable and pipeline protection,
Inflex(TM) polymer bend restrictors, and installation buoyancy of any size and
depth rating.
The Company's strategy is to become a leading provider of products and services
to the offshore industry, including shallow, deep and ultra-deep water
applications in oil and gas exploration, development and production activities
and maritime operations. Management plans to achieve this strategy through
organic growth and strategic acquisitions of complementary businesses with
technological advantages in deepwater environments. Deep Down's customers
include BP Petroleum, Royal Dutch Shell, Exxon Mobil Corporation, Devon Energy
Corporation, Chevron Corporation, Anadarko Petroleum Corporation, Marathon Oil
Corporation, Kerr-McGee Corporation, Nexen Inc., BHP, Amerada Hess, Helix,
Oceaneering International, Inc., Subsea 7, Inc., Transocean Offshore, Diamond
Offshore, Marinette Marine Corporation, Acergy, Veolia Environmental Services,
Noble Energy Inc., Aker Kvaerner, Cameron, Oil States, Dril-Quip, Inc., Nexans,
Cabett, JDR, and Duco, among others. For further company information, please
visit http://www.deepdowninc.com, http://www.electrowaveusa.com,
http://www.makotechnologies.com or http://www.flotec.com.
One of our most important responsibilities is to communicate with shareholders
in an open and direct manner. Comments are based on current management
expectations, and are considered "forward-looking statements," generally
preceded by words such as "plans," "expects," "believes," "anticipates," or
"intends." We cannot promise future returns. Our statements reflect our best
judgment at the time they are issued, and we disclaim any obligation to update
or alter forward-looking statements as the result of new information or future
events. Deep Down urges investors to review the risks and uncertainties
contained within its filings with the Securities and Exchange Commission.
SOURCE Deep Down, Inc.
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