Shares digital

Aim-listed oil service firm Lamprell (LAM:AIM) should become a FTSE 250 constituent before the end of the year.

The Dubai-based company, which builds new oil rigs and services old ones for multinational drilling companies, also announced a new $51 million contract with the National Drilling Company (NDC) to refurbish a jack up rig. Chief operating officer David Moran says: ‘The move to the main list is a natural progression, it will help persuade investors to look at us more closely and will give us more liquidity.’

The NDC deal adds around 10% to the order book, which will grow even further if three options worth $180 million each and three options worth $220 million each are exercised by Scorpion Offshore and Seajacks International respectively.

In response broker Oriel Securities reiterated its ‘buy’ recommendation and added the stock remains its top pick for 2008.

Shares says: Results next month should provide a further catalyst.

by: Tom Sieber