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Amedeo Resources said first rig remains on track for delivery next year

Amedeo Resources said first rig remains on track for delivery next year

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Interim results for Amedeo Resources (LON:AMED) charted a period of significant progress.

During the six months to June it successfully raised just over US$8.5mln, which puts the group on sound financial footing.

Its main investment is in a joint venture with Singapore-listed Yangzijiang Shipbuilding (YZJ), which landed its first order rig order in 2012.

The keel was laid for the 350ft Le Tourneau Super Enhanced 116e jack-up in April and it is on schedule for delivery in the second half of next year.

In the update, Amedeo said YZJ’s new yard on the banks of the Yangtze in Shanghai has been completed.

"The new yard is now operational and steady progress on Explorer 1 continues,” chief executive Glen Lau said.

“Importantly the client is impressed with the build quality. Third parties are also visiting, inspecting and are satisfied with the new yard and build quality, which compares favourably with other Chinese yards.

“Building reputation is key in developing a successful yard, and YZJ Offshore is making headway in establishing its reputation.”

The group also owns a 49% stake in the commodities house MGR, which despite the headwinds caused by the iron ore market remained profitable during the period.

“Importantly, it is moving from short-term contracts to longer-term, lower risk contracts. We look forward to continuing to build Amedeo," said Lau.

In common with most companies at this formative stage of development Amedeo was loss making – to the tune of US$815,000 in the half-year to June 30.

The shares, down 7% at 0.65p, are worth 2p each, according to broker Daniel Stewart.
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