1. Introduction

The Board of Directors of the Company wishes to announce that it has on 6 March 2020 obtained the approval from MP B5 (Thailand) Limited (“Mubadala Petroleum”) to announce that MMSVS Group Holding Co. Ltd (“MMSVS”), a wholly-owned subsidiary of the Company has been awarded a contract for the provision of coil tubing services to (“Contract”) via a Contract dated 10 February 2020.

2. Salient Term

The salient terms of the Contract are as follows:

(a)   The tenure of the Contract is until 9 February 2023 with an option for Mubadala Petroleum to extend by one or more separate periods each of one year in duration up to a maximum number of two extension periods.

(b)   To supply coil tubing services for Mubadala Petroleum and its affiliates.

(c)    The Contract value is approximately MYR23 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 as it does not involve the issuance of ordinary shares in the Company. However, it is expected to contribute positively to the earnings and enhance net assets per share of Uzma and its group of companies 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 and its group of companies have 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 MMSVS’ entry into the Contract is in the best interests of the Company.

This announcement is dated 9 March 2020.