Deep Down Operations in Gulf of Mexico

Tuesday, June 22, 2010

Deep Down, Inc. is an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services. In response to recent investor inquires, the company commented that the recently announced 180-day moratorium on exploration drilling in water depths in excess of 500 ft in the Gulf of Mexico has had no material negative impact on our current operations. However, we have seen an increase in activity in our operations related to cleanup and subsea monitoring in the U.S. Gulf of Mexico.

Additionally, we do not envision that the Drilling Moratorium will have a material impact on the operations of Cuming Corporation. On May 3, 2010, we announced that we had entered into a conditional purchase agreement to acquire Cuming Corporation. Consummation of the transaction remains subject to several conditions which include, among other things, obtaining adequate external financing to fund the approximately $34m cash component of the purchase price.

Cuming Corporation, which primarily provides buoyancy products for drilling riser systems, had a backlog and signed letters of intent (LOI) of $138m and $32m, respectively at March 31, 2010. Recently, the $32m of LOI's for international projects have become backlog in the form of signed contracts. Over 80% of the Cuming backlog involves drilling vessels that are either contracted for or seeking contracts to work on projects outside the U.S. Gulf of Mexico. Both Deep Down and Cuming continue to bid on deepwater buoyancy product business. We expect that the demand for such products is and will continue to be driven by deepwater exploration and production activity occurring outside the U.S. Gulf of Mexico.

"The impact beyond 2010 of the Drilling Moratorium on our customers' exploration, development and production activities in the U.S. Gulf of Mexico remains unclear, but we continue to monitor and remain actively involved with our customers during this difficult time for our industry. We will continue to support our customers' ongoing operations in the Gulf of Mexico and around the world," stated Ron Smith, Deep Down, Inc. Chief Executive Officer.

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Coast Guard tactical air squadron holds change of command ceremony

Capt. Kevin P. Gavin relieved Capt. Donna L. Cottrell as commanding officer of Coast Guard Helicopter Interdiction Tactical Squadron Jacksonville during a change of command ceremony at HITRON Friday.

Shell Commited To Russia Expansion Despite Sanctions

Royal Dutch Shell is committed to expansion in Russia, Chief Executive Ben van Beurden told Russian President Vladimir Putin at a meeting on Friday amid sanctions

Russia Ships First Oil From Offshore Arctic Platform

President Vladimir Putin hailed Russia's first shipment of Arctic offshore oil on Friday, saying the platform decried by environmentalists will help Moscow expand its global energy markets share.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Pipelines Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1019 sec (10 req/sec)