Shares jump as Creon agrees deal to build jack-up

Resources infrastructure investment company Creon has cheered investors with the news that it has entered into a contract with Explorer 1 to construct and deliver one unit of a self-elevating mobile offshore jack-up drilling rig.

Resources infrastructure investment company Creon has cheered investors with the news that it has entered into a contract with Explorer 1 to construct and deliver one unit of a self-elevating mobile offshore jack-up drilling rig.

Under the the $170m deal, Jiangsu Yangzijiang Offshore Engineering Co., in which Creon's 46.45% owned joint venture has a 40% stake, will build a 'Le Tourneau Super 116E Class' design rig capable of drilling to 30,000 feet in sea depths of up to 350 feet. It will be fully equipped with state of the art drilling equipment and accommodation for 120 people.

Construction of the offshore mobile drilling rig will take place at the existing yard of Creon's joint venture partner, Yangzijiang Shipbuilding, in Jiangsu Province, China.

Chief Executive Officer Glen Lau, said: "This agreement bears testimony to the strength of our joint venture partner - Yangzijiang Shipbuilding - our ability to source significant contracts, and the demand in the market for modern mobile drilling vessels to replace older and shallow water drilling rigs that are being phased out of the industry.

"Creon will be able to leverage off our partner's existing world class state of the art yard and infrastructure whilst simultaneously allowing our joint venture business, YZJ Offshore, to develop a new facility at the recently acquired shore line land in Taicang outside Shanghai."

The share price rose 23.08% to 0.80p by 09:10.

NR

Recommended

Share tips of the week - 12 August
Share tips

Share tips of the week - 12 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
12 Aug 2022
Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022

Most Popular