Kencana Awarded Contract for Fabrication of Offshore Facilities

Kencana Petroleum reports that its wholly owned subsidiary, Kencana HL was awarded a contract for the fabrication of offshore substructures from Murphy Sarawak Oil.

Fabrication of substructures and related services for Phase 1 of SK309/SK311 gas field development is located offshore Bintulu, Sarawak. The contract should be finalized by early 2008.

The estimated value is at approximately RM57 million and is expected to contribute positively to the earnings of Kencana Petroleum Group for the financial year ending July 31, 2008.

The Board of Directors of Kencana Petroleum is of the opinion that the acceptance of the Contract is in the best interest of the Company.