Deep Down Inc. (OTCBB: DPDW), a world leader in the engineering, design and manufacturing of deepwater buoyancy and polyurethane elastomer systems, today announced that Flotation Technologies has received a $5.5 million contract for its unique, custom-designed riser buoyancy solution. On April 17, Deep Down announced a definitive agreement to purchase all of the outstanding capital stock of Flotation Technologies, Inc.
The contract is from an international energy company and is expected to be delivered in the third and fourth quarters of 2008. The client and product are unnamed due to the nature of the project.
“We are pleased to have been chosen as the contractor for this project,” Fred Maguire, Flotation Technologies’ sales and marketing manager stated in the press release. “It once again shows that Flotation Technologies has the design, engineering and manufacturing capabilities to provide innovative, market-changing product solutions.”
Deep Down engages in the provision of innovative solutions, installation management, engineering services, support services, custom fabrication and storage management services for offshore subsea control, umbilical and pipeline industries.
“We are very excited about the future of Flotation Technologies. We believe the ‘cost of ownership’ of many of its products is attractive due to lower maintenance, repair, and replacement requirements after installation. Buoyancy will become more important as the offshore energy industry continues its trend toward exploration and development activities in ultra-deep waters,” Ronald E. Smith, Deep Down’s president and CEO stated.
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