Luxembourg,
22 October
2012: Prospector Offshore Drilling S.A. (the "Company" or
"PROS") announced today that its relevant Group subsidiaries have
entered into an agreement (the "Rig 2 Company Sales Agreement")
with Tabasco Jackup, S.A. de C.V., a subsidiary of Compañia
Perforadora México, S.A.P.I. de C.V. ("Purchaser"), for the sale
and purchase of 100% of the shares and certain intercompany
obligations of Prospector Rig 2 Owning Company S.à r.l., the
subsidiary that is party to a rig construction contract for the
Company's second offshore jack-up drilling rig ("Rig 2") .
The total sales consideration is approximately USD 63.3
million in cash. As part of the Rig 2 Company Sales
Agreement, the purchaser will deposit USD 23.0 million in an escrow
account no later than 25 October 2012, and closing is scheduled for
December. The closing of the sale and purchase of the shares
will be subject to obtaining the approval of Dalian Shipbuilding
Industry Offshore Co., Ltd. ("DSIC-Offshore") the builder of Rig 2.
Assuming the closing of the transaction occurs, the
Company anticipates that its net proceeds from the sales
transaction will be approximately USD 60.6. The Company also
anticipates that it will recognize a gain of approximately USD 39.4
million at closing, based on the first instalment of USD 18.5
million for the shipyard contract with DSIC-Offshore of USD 185
million, project management costs incurred to date, broker
commissions, taxes and professional fees related to the Rig 2
Company Sales Agreement.
The Company further announced that its relevant
Group subsidiaries and the Purchaser have entered into an option
agreement (the "Rig 4 Option Agreement") for the sale and purchase
of 100% of the shares and certain intercompany obligations of
Prospector Rig 4 Owning Company S.à r.l., the subsidiary that is
party to a rig construction contract with DISC-Offshore for the
Company's fourth rig ("Rig 4"). If the option is exercised,
the total sales consideration would be approximately USD 48.5
million in cash. The option expires on 6 December 2012 and, if
exercised, the share purchase agreement for the Rig 4 Owning
Company shares would close simultaneously with the closing for the
Rig 2 Company Sales Agreement. The closing of the sale and purchase
of the Rig 4 Owning Company shares also is subject to obtaining the
approval of DSIC-Offshore. Assuming the closing of the
transaction occurs, the Company anticipates that its net proceeds
for the sale of the Rig 4 Owning Company shares would be
approximately USD 46.0 million. The Company anticipates that
it would recognize a gain of approximately USD 23.5 million at
closing, based on the first instalment of USD 19.9 million for the
shipyard contract with DSIC-Offshore of USD 199 million, project
management costs incurred to date, broker commissions, taxes and
professional fees related to the Rig 4 Option Agreement.
Robert W. Rose, the PROS President
and CEO, commented today: "The agreement for the sale of shares in
Rig 2 Owning Company is a very important step for the
Company. Proceeds from the sale, along with existing cash,
would significantly reduce our cash requirements to take the
delivery of PROSPECTOR
3 later in 2013. If the Rig 4 Option Agreement
is exercised, we will be in an excellent position to grow the
Company through additional new rig construction. Also, we are
very encouraged with the increasing tender activity and the charter
opportunities we have identified for PROSPECTOR 3."
Shareholders of the Company are encouraged to
participate in a related conference call, scheduled to be held on
23 October 2012 at 1600 (Central European Time). Participants can
connect to conference # 54591615 by dialing the standard
international dial-in number: +44 1452 555566.
Participants can also connect using the following
toll-free numbers:
Norway: 80019414
United States: 1-866-966-9439
United Kingdom: 08006940257
Singapore: 8001203988
Hong Kong: 800968777
About
PROS:
PROS is a high specification
jack-up drilling contractor. PROS currently has contracts in
place for the design, construction and delivery of six F&G
JU2000E high specification, harsh environment (HS/HE) jack-up
drilling rigs (five upon the closing of the Rig 2 Company Sales
Agreement and four in the event of exercise of the option under the
Rig 4 Option Agreement). The Company's first rigs are
scheduled for delivery commencing in the first quarter of
2013. PROS also has option agreements for the construction of
six additional rigs of the same design. Upon deployment of
its rigs, PROS, under its proven management team, will have the
newest fleet of HS/HE jack-up rigs in the world, operating with the
most advanced drilling systems available in the industry.
This press release contains
forward-looking statements that involve risks and
uncertainties. You are cautioned not to put undue reliance on
forward-looking statements because actual events and results may
differ materially from the expected results described by such
forward-looking statements. Prospector Offshore Drilling S.A.
disclaims any obligation to update and revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Contact:
Steven A. Manz
Chief Financial Officer
Prospector Offshore Drilling S.A.
Tel: +1 281 560 8010
This information is subject
of the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.
