Northern Offshore, Ltd. (Norwegian OTC: “NOFL”) (http://www.northern.bm) (“Northern Offshore”) has signed a definitive agreement with Maersk Contractors to purchase three 300' IC Harsh Environment Jack-up drilling units. The three Harsh Environment Jack-up drilling units, the Enhancer, the Endeavour and the Exerter, are currently operating in the Danish sector of the North Sea under drilling contracts with Maersk Oil & Gas, an affiliate of Maersk Contractors. The drilling contracts expire in August 2008, September 2009 and December 2009, respectively, subject to certain conditions. Maersk Contractors will continue to manage the units while under their existing drilling contracts. Closing and Delivery of the rigs is expected to occur on June 15, 2007. The purchase price for the rigs is US$455 million, and will be funded through existing cash resources and debt finance.
Jim LaChance, Chairman of Northern Offshore commented: “We are delighted to have concluded this transaction. The acquisition of three high quality North Sea Jack Ups will materially strengthen the size and the quality of our fleet. Through the initial management agreement with Maersk Contractors and the current drilling contracts with Maersk Oil and Gas we will be given time to build a quality operation around the assets. The contract opportunities we see for these assets going forward will be valuable in our effort to build Northern Offshore into a solid long term drilling contractor with good charter coverage. The transaction is expected to significantly improve cash flow and earnings per share short term as well as long term.
Northern Offshore Limited is a Bermuda exempted holding company which operates offshore oil and gas production and drilling vessels deployed around the world in strategicalctive locations. The Company's recently renovated fleet consists of one production unit (the Northern producer, a semi submersible floating production facility) and two drilling units (the Energy Searcher, a drillship, and the Galaxy Driller, a semi submersible drilling rig). The vessels operate in various markets including the North Sea, the Middle East, the Indian Ocean and Southeast Asia.