Lots of positive news but little response from the share price – I think I know why!
Hot on the heels of last week’s positive trading statement AIM listed Velosi has come out with another positive announcement. Despite all the encouraging noise unfortunately the share price remains rooted to its lows.
The group’s associate company, Velosi Oman which is 50% owned by Velosi, has been re-awarded a quality assurance, quality control and third party inspection services contract with Petroleum Development Oman (“PDO”). The new contract is worth an estimated US$30m and commences in June 2009, covering a period of four years. Velosi will provide quality assurance and quality control services throughout Oman, and third party inspection services on a global basis. PDO is the major oil and gas exploration and production company in Oman, accounting for more than 80% of the country’s crude oil production and nearly all of its natural…