Neptune signs fourth contract in Gulf of Mexico

West Perth-based engineering services company Neptune Marine Services Ltd will has secured its fourth repair project in the Gulf of Mexico, conducting dry underwater welding for an American oil and gas explorer.

The company said in an announcement the contract was proof of its successful entry to the US market.

The full text of a company announcement is pasted below

Leading engineering services company Neptune Marine Services (ASX: NMS) today announced that it has secured its fourth repair project in the Gulf of Mexico, its third in partnership with US-based Cal Dive International Inc. (NYSE: DVR). Neptune has been contracted to deliver its NEPSYS welding technology on an offshore production platform for a leading NYSE-listed US oil & gas exploration, development and production company.

Neptune's Managing Director Christian Lange said this new project in GoM was significant achievement for Neptune as it clearly illustrates that the company has successfully penetrated the US offshore oil & gas market with its dry underwater welding technology, NEPSYS, and that the technology is well on the way to gaining broad acceptance in GoM.

"This is an excellent project for Neptune to secure as it is for a repeat customer that has recognised that the NEPSYS technology is a proven and cost effective repair and maintenance solution for its offshore assets.

"The increasing take-up of NEPSYS in the US oil & gas market comes at the right time for Neptune. The recent acquisition of leading commercial diving business USUS out of Texas gives us an expanded customer base to market NEPSYS in the US. We are also focused on broadening our range of sub sea engineering services to customers in that market.

"GoM remains an important and lucrative market for Neptune. There are over 5,000 fixed platforms in GoM and 78 offshore drilling rigs currently active in the region. This is potentially a huge repair and maintenance market and we have only just scratched the surface," Mr. Lange said.

Change of industry classification on ASX

Neptune also announced today that the Australian Stock Exchange has granted the company a change in Industry Classification. From June 24, 2007, Neptune's Global Industry Classification (GICS) has been changed to Energy, Oil & Gas Equipment and Services which better reflects Neptune's broader operations.