Dolphin Drilling to Acquire Two Semi-submersible Rigs with Robust Backlog, Consolidating the Standard Rig Segment

Source Press Release
Company Dolphin Drilling ASTransocean Ltd. 
Tags Asset Deals, Deals, Oil Services
Date June 22, 2023

Dolphin Drilling AS ("Dolphin Drilling") (OSE: DDRIL) announces the acquisition of two semi-submersible rigs, the  Paul B. Loyd Jr. and the Transocean Leader for a total of USD 61.5 million (plus an additional USD 3 million) (the "Transaction").

Dolphin Drilling is contemplating a private placement of approx. USD 60 million to finance the Transaction (the "Private Placement").

“We are excited about this acquisition, which not only expands our fleet but also enhances our earning visibility," says Bjørnar Iversen, CEO of Dolphin Drilling.

“This transaction signifies an important stride for Dolphin Drilling as we showcase our operational platform's capacity to incorporate additional assets and generate immediate, robust cash flows for our shareholders. The addition of these efficient rigs allows us to further consolidate the midwater rig segment in a tightening market, characterised by historically low supply and surging dayrates across offshore basins.," Iversen elaborates.

Under the agreement, Dolphin Drilling will acquire the Paul B. Loyd Jr. and  Transocean Leader from Transocean. Currently, the  Paul B. Loyd Jr. is under contract with Harbour Energy in the UK with the firm period slated to last until September 2024, and the  Transocean Leader is stacked in the UK.

Dolphin Drilling is contemplating a private placement of new shares raising gross proceeds of the NOK equivalent of USD 60 million to finance the Transaction (the "Private Placement"). The Private Placement is supported by Dolphin Drilling's two largest shareholders, Strategic Value Partners LLC and S.D. Standard ETC Plc, who have pre-committed to subscribe in the Private Placement for USD 12.5 million and USD 7.5 million, respectively. Further, Strategic Value Partners LLC and S.D. Standard ETC Plc have committed to support Dolphin Drilling through a USD 15 million revolving facility. In addition, the CEO, COO and CFO, and other senior members of the management group at Dolphin Drilling have committed to participate in the Private Placement.

The agreement is subject to certain customary closing conditions which must be satisfied before the Transaction can be completed.

More information on the contemplated Private Placement can be found in a separate announcement from Dolphin Drilling announced on 22 June 2023.

The agreement with Transocean is conditioned upon approval to novate Paul B. Loyd Jr. existing UK HSE safety case to Dolphin Drilling and customary closing conditions and is expected to be closed during the second half of 2023.

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd