Deep Down Reports Loose Steel Tube Flying Lead Awards
HOUSTON, Sept. 30, 2011 /PRNewswire/ -- Deep Down, Inc. (OTCBB: DPDW), an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services, today announced it has been awarded two LSFL (Loose Steel tube Flying Lead) orders worth in excess of $3 million. One order was placed by a major controls OEM and the other directly by an independent oil and gas, exploration and production group.
A total of twenty-seven (27) flying leads and ancillary equipment will be delivered in the first half of 2012. The flying leads will be deployed in water depths up to 1,300 meters off the coasts of Northwest Australia and Ghana, West Africa. Given the scope of supply and the delivery method, Deep Down also anticipates additional work from the associated installation contractors during the installation phase.
Deep Down's LSFL technology is widely recognized as the most robust, yet installation friendly flying lead on the market. The patent-pending Moray® Termination System contains a light-weight and compact termination head and very flexible steel tube bundle allowing for easy make up of the heads by the ROV on the ocean floor. This technology, coupled with Deep Down's innovative deployment methods, reduces the time on bottom and hence connection cycle time. Deep Down also offers integrated buoyancy in their flying lead heads for better handling and work-over intervention scenarios, where it is more advantageous to deploy a smaller ROV from the platform, as opposed to mobilizing a vessel with a work class ROV.
Ron Smith, Chief Executive Officer stated, "Customers are recognizing that flying leads, although insignificant in cost compared to the rest of the distribution system, represent a bigger challenge to install than simple mud mats. Working in tight quarters and trying to manipulate stiff and heavy flying leads is a challenge; the loose steel tube bundle is the key to effortless make up. These orders mark a shift in customer perception and have recognized our success on previous projects. We are confident in this technology and have strong indications from many of our clients that this is the technology of choice going forward. We will continue to expand this product line."
About Deep Down, Inc.
Deep Down, Inc. is an oilfield services company serving the worldwide offshore exploration and production industry. Deep Down's proven services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, distributed and drill riser buoyancy, ROVs and tooling, marine vessel automation, control, and ballast systems. Deep Down supports subsea engineering, installation, commissioning, and maintenance projects through specialized, highly experienced service teams and engineered technological solutions. The company's primary focus is on more complex deepwater and ultra-deepwater oil production distribution system support services and technologies, used between the platform and the wellhead. More information about Deep Down is available at www.deepdowncorp.com.
Any forward-looking statements in the preceding paragraphs of this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials and execution of business strategy. For further information, please refer to the Company's filings with the Securities and Exchange Commission, copies of which are available from the Company without charge.
SOURCE Deep Down, Inc.