1. Introduction

The Board of Directors of Uzma wishes to announce that PT. Uzma Development Services, a subsidiary of the Company has been awarded by Pertamina with a Contract for the Provision of Directional Drilling together with Manpower Services for the Drilling of Sumatera 1 Exploitation Wells by way of a Letter of Award dated 3 June 2020 (“the Contract”).

2. Salient terms of the Contract

The salient terms of the Contract are as follows:-

(a) To provide directional drilling and manpower services for the drilling of Pertamina’s Sumatera 1 Exploitation Wells.

(b) The tenure of the Contract is twenty-four (24) months from the date of the Letter of Award.

(c) The value of the Contract is approximately RM12 million.

3. Risk factors

For this Contract, the Company foresees amongst others potential risk factors include project operational and execution risks, work schedules, delivery timelines and adverse weather conditions.

4. Financial effects

The Contract will not have any effect on the share capital and shareholding structure of the Company and is expected to contribute positively to the earnings of the Uzma Group for the financial year ending 30 June 2020 and onwards until the expiry of the Contract.

5. Directors’ and Major Shareholders’ Interests

None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of Uzma has any direct or indirect interest in the Contract.

6. Directors’ Statement

The Board of Directors of the Company, after considering all the aspects of the Contract, is of the opinion that the acceptance of the Letter of Award is in the best interest of the Company.

This announcement is dated 4 June 2020.