Amedeo Resources rockets after securing Chinese rig contract

5th Feb 2014 08:02

The share price of resources investment firm Amedeo Resources rocketed on Wednesday after the company confirmed that its joint venture in China has secured a mammoth contract to build drilling platforms.Jiangsu Yangzijiang Offshore Engineering (YZJOE), Amedeo's 18.6%-owned collaboration with Chinese ship manufacturing giant Yangzijiang Shipbuilding, has reached agreement to build two semi-submersible drilling platforms for Primepoint Drilling PTE. In addition, YZJOE also agreed an option on two additional semi-submersible drilling platforms."The total value of the contract and options is approximately $1.7bn," Amedeo said in a statement.The delivery of the platforms is expected to take around three years.Broker Daniel Stewart & Company last week initiated coverage of Amedeo with a 'buy' rating, saying it sees "transformational growth opportunity" at the company.The stock was trading at 3.19p in early trade, nearly three times the price at Tuesday's close.BC