Koil Energy Solutions Inc. (KLNG)

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Repost from IR:
Posted by: stevo51
In reply to: None
Date:4/15/2007 7:07:21 PM
Post #of 11124

My email from Steve on DDI being a hurricane stock:
Steve:

Good to hear from you!

I spoke with CEO Ron Smith and posited that same question to him. Ron did confirm that if infrastructure is damaged on platforms in the Gulf during a hurricane, of course, that would increase Deep Down's chances for repair contracts. So, in that sense, yes, a hurricane can certainly increase business seasonally.

However, on the other hand, if Deep Down is in the middle of a deployment at sea during a hurricane, and its own product is destroyed before it is installed, that can be at least a delay if not a liability for the company.

However, in my opinion, I believe it would also be correct to assume that the "benefits" to Deep Down for increased business due to a hurricane probably outweigh the risks, statistically; so, yes, I agree their client list does support that assumption.

However, I want to be clear the we here at Deep Down do not in any way wish for another hurricane season or the resulting human toll we experienced during Katrina/Rita. However, the company is ready if we do have another major hurricane, and we can and will "answer the bell" if needed.

Thanks for your continued support, Steve; I look forward to speaking with you more very soon.

Regards,

--Steve Haag
investor relations
Deep Down, Inc. (OTCBB: DPDW)
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