SINGAPORE (June 28): Energy services provider KS Energy announced it has secured two contracts worth US$23.9 million ($32.4 million).
The first contract was awarded to a consortium of PT Atlantic Oilfield Services, a subsidiary of KS Drilling and and PT Java Star Rig, a joint venture of KS Drilling.
KS Drilling is an investment holding company that is 80.09%-owned subsidiary of KS Energy. Its main activities of its subsidiaries are in the provision of onshore and offshore drilling services, rig management and support services, oilfield equipment ownership and leasing.
This land drilling contract is expected to commence in 3Q19 and the value if approximately US$21.4 million.
The second contract for the “KS Medstar I” jack-up drilling rig was awarded to KS Drilling Egypt, a subsidiary of KS Drilling.
The work in Egypt is expected to commence in 3Q19 and is approximately worth US$2.5 million.
Doubts have been expressed by the auditors of KS Energy over the company's ability to continue as a going concern.
The group had incurred a net loss of $53.9 million for FY2018 and, as at end 2018, the group's and company's current liabilities exceeded current assets by $18.3 million and $2.5 million respectively.
The group and company also had deficits in shareholders' equity of $10.3 million -- excluding non-controlling interests -- and $11.7 million respectively.
Shares in KS Energy closed at 1.5 cents on Friday.
