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Deep Down Announces $2 Million in Contracts for Innovative Solutions
Feb 15, 2008 9:52:00 AM
View Additional ProfilesHOUSTON, Feb. 15 /PRNewswire-FirstCall/ -- Deep Down, Inc. (OTC Bulletin Board: DPDW) announced today that it has been awarded contracts to develop and manufacture unique, innovative solutions for two separate major offshore oil and gas operators. Deep Down is currently designing approximately $1.5 million worth of innovative subsea installation equipment to address its clients' critical issues over the next several months.

The first unique innovation is a Subsea Accumulator Module (SAM), consisting of Subsea Deployment Baskets (SDB) with attached accumulators, a built-in steel flying lead, a J-plate, and a Remote Operated Vehicle (ROV) panel. Several of these units will be shipped. The SAM has been designed so that it may be transported without a wide load permit and set on a vessel. Once on the vessel, the wings of the SDB can be retracted, and the system will be pre-charged with pressurized control fluid. Thereafter, the SDB can be simply lifted off the deck of the vessel and placed on the seabed. Once on the ocean floor, the vessel will lift and pull out the built-in steel flying lead from the SAM with its own down-line cable. A ROV will be used to guide the steel flying lead from the SAM and connect it to the Hydraulic Distribution Manifold (HDM). The ROV will be further deployed to open valves, wherein the SAM will provide plug-n-play subsea accumulation capabilities to augment the existing subsea distribution control system with localized volume and pressure control features. The SAM will also serve as an anode skid, designed to carry additional anodes. It will be grounded to the structure in order to provide additional cathodic protection to the HDM. The entire SAM can also be easily retrieved and serviced on deck, further improving the ability to retrieve subsea hardware.

The second innovation involves the development and manufacture of a unique deployment system to install very fragile, small-diameter fiber optic cables in deepwater environments. This deployment system will greatly reduce the amount of stress on the fiber optic cable during installation. The particular project involves the installation of approximately eight miles of fiber optic cable in 6000 feet of water. The specialized equipment can be placed on an installation contractor's vessel with minimal effort and provide a safe, quick method of efficient deployment.

"It is gratifying that major oil and gas operators, installation contractors, and control suppliers continue to contact Deep Down to develop innovative solutions for critical subsea issues and applications. It is a testament to our entire staff, including our engineers, fabricators, and installation crews. One of our key strengths is our ability to take an idea from a sketch on a piece of paper to a full 3-D solid works model, through fabrication, and a successful first-time installation in a relatively short period of time, often within 90 days," said Ronald E. Smith, Deep Down's President & CEO.

Deep Down recently provided a unique solution for critical issues confronting a third oil and gas operator. The Company installed specially designed, fully autonomous umbilical jacking system to lift up an existing steel tube umbilical on the ocean floor, which was then re-terminated. The solution and procedures provided by Deep Down allowed the operator to bring the well back on line in a fraction of the time that was otherwise envisioned. Another specialized solutions team is scheduled to depart offshore with a recently developed kit to clean a deep water J-tube, with open segments in the J-tube. These two projects add another approximately $500,000 in revenue.

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.

The Company's strategy is to consolidate service providers to the offshore industry, as well as designers and manufacturers of subsea, surface, and offshore rig equipment used by major, independent, and foreign national oil and gas companies in deep-water exploration and production of oil and gas throughout the world. 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 and http://www.electrowaveusa.com.

Company information distributed through the Market Access Program is based upon information that Standard & Poor's considers to be reliable, but neither Standard & Poor's nor its affiliates warrant its completeness or accuracy, and it should not be relied upon as such. This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument.

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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Steven Haag
Investor Relations of Deep Down
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