AWO Prospectus PETROJACK offer - COSL Drilling Europe AS

6. Short description of Petrojack ASA
The information in this chapter is based on publicly available information regarding Petrojack,
including information published by Petrojack in its introductory prospectus dated February 3,
2005, subsequent stock exchange releases from Petrojack and other public sources of information.
Awilco Offshore has not independently verified any information regarding Petrojack.
6.1 Company description
Petrojack ASA is a Norwegian-based rig-owning company which was established in October 2004
and listed on the Oslo Stock Exchange during February 2005. The company has entered into
contracts for the construction of three jack-up rigs at Jurong shipyard in Singapore. The first rig
will be delivered March 15, 2007.
Petrojack’s stated strategy is to create value for its shareholders by contracting new or acquiring
existing jack-up drilling rigs with a view to operating them on medium to long term contracts. The
company intends to take advantage of the expected strong development in the drilling rig market
has stated that it intends to actively consider structural alternatives such as mergers, acquisitions or
outright sale to competitors in order to create maximum shareholder value.
Corporate history
Petrojack was incorporated on October 4, 2004 by LOG, an offshore-industry project development,
investment, rental and management company owned by Mr. Berge Gerdt Larsen.
The contract for the first jack-up rig to be built by Jurong shipyard in Singapore, came into effect
December 15, 2004.
Petrojack was listed on the Oslo Stock Exchange in February 2005. The company declared options
for two additional jack-up rigs to be constructed at Jurong on April 15 and June 18, 2005.
The jack-up rigs
Petrojack has entered into EPC contracts with Jurong/SembCorp Marine for the construction of
three jack-up rigs at Jurong shipyard in Singapore. The rigs are Baker Marine class jack-up rigs
with an operating water debt capacity of 375 feet and drilling depth capacity of approximately
30,000 feet.
The rig price for the first jack-up rig is USD 125.3m, while the total project cost is estimated to
approximately USD 135.9m. Development Bank of Singapore (DBS Bank) has provided Petrojack
with a loan facility of up to USD 106.0m (subject to a maximum of 80 percent of the rig price plus
certain other defined costs) for the construction of the jack-up rig. The remaining amount,
approximately USD 31m, is financed through equity. The delivery date is on or before March 15,
2007.
The rig price for the second jack-up rig is USD 126.5m with 80 % yard financing during the
construction period. Delivery date is on or before January 15, 2008.
The rig price for the third jack-up rig is USD 131.2m with 80 % yard financing during the
construction period. Delivery date is on or before June 30, 2008.
Management and Board of Directors
Petrojack has entered into a management agreement with LOG where LOG shall be responsible for
the appointment of Petrojack’s managing director and provide additional staff, supplies and
equipment to undertake all necessary administrative functions. LOG shall report to Petrojack’s
Board of Directors and shall also be responsible for the operation and financing of Petrojack,
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