AWO Prospectus PETROJACK offer - COSL Drilling Europe AS

Name Yard W. depth D. depth Decl. by Delivery Project price Financing
Contracted rigs
WilPower PPL 375ft 30,000ft 2Q06 131 MUSD SCB
WilCraft Keppel 400ft 30,000ft 4Q06 131 MUSD Nordea
WilSuperior PPL 375ft 30,000ft 2Q07 130 MUSD Nordea
WilTBN Keppel 400ft 30,000ft 4Q07 134 MUSD Nordea*
Optional rigs
PPL option 1A PPL 375ft 30,000ft 03 / 2006 +24mo 144 MUSD
Keppel option B Keppel 400ft 30,000ft 08/ 2006 +28mo 150 MUSD
PPL option 2 PPL 375ft 30,000ft 10 / 2006 +24mo 131 MUSD
PPL option 3 PPL 375ft 30,000ft 09 / 2007 +24mo 132 MUSD
* in process
The project prices set out above are the expected prices of the rigs delivered and fully equipped.
The prices include yard contract prices (which are firm for the contracted rigs and the PPL option
rigs), newbuilding supervision, owner furnished equipment, spares, financing, and other project
expenses.
Organisation and management
The Offeror is incorporated as a Norwegian public limited liability company and has its registered
office in Oslo.The Offeror has five full-time employees. The Offeror’s managing director is Henrik
Fougner, who has more than 15 years of experience from banking and the shipping and offshore
industry. A minor part of the Offeror’s support functions, such as accounting and treasury services,
are provided pursuant to a management agreement with Anders Wilhelmsen & Co AS.
All commercial and operational management of the jackup drilling fleet is provided by Premium
Drilling, a company established jointly by Sinvest ASA and Awilco Offshore. Premium Drilling
will be responsible for advising the owners on business development and market strategy, and for
the marketing, contracting and operation of the two companies’ fleet of jackup drilling rigs. The
head office of Premium Drilling is located in Houston, USA. Bill Rose, former Vice President of
Noble Corporation, has been appointed as its CEO. The process of creating a professional drilling
contractor is well underway.
Corporate, technical- (including supervision of the new buildings) and commercial management for
the accommodation rigs are being ensured by the Offeror itself. The Offeror acquires operational
management services for the accommodation units from third party service providers, Polycrest AS
and OSM Offshore AS. These are both independent managers of offshore units.
Objective and strategy
Key elements of the Offeror’s strategy is:
• To create the basis for a leading international drilling contractor.
• To participate in and take advantage of an expected upturn in the jack-up drilling market and
to further expand into this market, partly by utilising cash flow from the accommodation rigs.
• To be an active participant in sector consolidation.
• To have an opportunistic approach to expansion in other offshore segments.
1.4 Petrojack ASA
Petrojack ASA is a Norwegian-based rig-owning company listed on the Oslo Stock Exchange.
Petrojack has entered into contracts for the construction of three jackup rigs to be constructed at the
Jurong shipyard in Singapore. The rigs are under construction and are scheduled for delivery in
March 15 2007, January 15 2008 and June 30 2008 respectively. Petrojack was incorporated in
October 2004 by LOG a company owned by Mr. Berge Gerdt Larsen. Petrojack was listed during
February 2005. The main owners are Berge Gerdt Larsen, Awilco Offshore and Sinvest ASA.
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