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The Board of Directors (the “Directorsâ€) of Ezion Holdings Limited (the “Companyâ€, and together with its subsidiaries, the “Groupâ€) wishes to announce that the Group had entered into a conditional sale and purchase agreement (“SPAâ€) with TK and HR Services S.A. de C.V. (the “Purchaserâ€), pursuant to which the Group agreed to sell to the Purchaser, and the Purchaser agreed to acquire from the Group, the following rigs owned by the Group:
1) Atlantic Tiburon 1
2) Atlantic Tiburon 2
3) Atlantic Tiburon 3
(collectively, the “AT Rigsâ€), on the terms and subject to the conditions of the SPA (the “Proposed Disposalâ€). The Proposed Disposal is expected to be completed by 30 November 2019, subject to the release of the mortgages over the AT Rigs which the Group is currently in the process of obtaining.
The Purchaser is a company incorporated under the laws of Mexico and its principal activities are the provision of marine support activities. The directors and shareholder(s) of the Purchaser are not related or connected to the Company, the Directors or the Group.
The sale consideration (“Considerationâ€) of the Proposed Disposal includes a nominal cash consideration of US$3.00 and the novation of liabilities of approximately US$659,000 in respect of the AT Rigs to the Purchaser. The Consideration was arrived at after arm’s length negotiations, on a “willing buyer and willing seller†basis taking into account, amongst other factors, the scrap value of the AT Rigs and future burn rates of the AT Rigs.
The aggregate carrying value and net tangible asset value of the AT Rigs as at 30 June 2019 is approximately US$2.91 million. The scrap value of the AT Rigs is approximately US$1.1 million which is insufficient to cover the costs required to scrap the AT Rigs and the settlement of liabilities relating to the AT Rigs which approximate US$600,000 and US$659,000 respectively. There is a deficit of approximately US$2.91 million of the proceeds over the book value of the AT Rigs and the Proposed Disposal is expected to incur a loss on disposal of US$2.25 million.
Just as a reminder the three rigs where cold stacked in Mexico and are the following type:
| Rig Design | Friede & Goldman |
| Rig Model | L-780 Mod II |
| Year Built | 1981 & 1982 |
| Country of Build | Singapore |
| Yard Name | Pioneer Yard I |
| Group Yard Name | Keppel Offshore & Marine Ltd. |
Photo for illustration purposes only
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Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
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