June 16, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Deep Down, Inc. (OTCBB: DPDW), an oilfield services company specializing in deepwater and ultra-deepwater oil production distribution system support services, said that the company has seen no ill effects due to the recently announced 180-day moratorium on exploration drilling in water depths in excess of 500 feet in the Gulf of Mexico. Nor does it see the moratorium hurting the business of its acquisition target, Cuming Corp.

In fact, Deep Down said it has picked up a fair amount of work as part of the effort to deal with the Deepwater Horizon accident.

The company said that the moratorium has had no material negative impact on its current operations. However, Deep Down said it has seen an increase in activity in its operations related to cleanup and subsea monitoring in the U.S. Gulf of Mexico.

Deep Down said it also didn’t see the moratorium having a material impact on the operations of Cuming Corp.  On May 3, the company reported that it had entered into a conditional purchase agreement to acquire Cuming.

Cuming Corporation, which primarily provides buoyancy products for drilling riser systems, had a backlog and signed letters of intent of $138 million and $32 million, respectively at March 31. Recently, the $32 million of LOI's for international projects have become backlog in the form of signed contracts, according to Deep Down.

The company said that over 80% of the Cuming backlog involves drilling vessels that are either contracted for or seeking contracts to work on projects outside the U.S. Gulf of Mexico.

Both Deep Down and Cuming say they continue to bid on deepwater buoyancy product business. They say that the demand for such products is and will continue to be driven by deepwater exploration and production activity occurring outside the U.S. Gulf of Mexico.

Houston-based Deep Down’s services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, distributed and drill riser buoyancy, ROVs and tooling, marine vessel automation, control, and ballast systems.

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