Thailand-based Mermaid Maritime Public Company Limited (the Company) referred Tuesday to the Company’s announcement dated March 27, 2013 in respect of the contract award to provide drilling and related services using the tender drilling rig ‘MTR-2’ (Contract) for an international upstream oil and gas company in Indonesia (Client).
The Company wishes to announce that the Client is in the process of obtaining new permits from the relevant government authorities in Indonesia to continue performance of the work under the Contract. In the interim, the Client and the Company had entered into an Amendment to the Contract (Amendment) whereby the Client shall use the drilling rig as a work-over unit on a reduced rate. For illustrative purposes, assuming that the work-over period was for 30 days the potential revenue from such period is estimated to be $1,260,000.
Upon Client receiving the necessary new permits, the drilling rig is planned to resume drilling operations on its normal rate on a mutually agreed date. The Company will make another announcement when the drilling rig resumes drilling operations.
Assuming that the Amendment commenced and had been completed within the most recent financial year (the Company’s last financial year ended Sept. 30, 2013), the performance by the Company of the Contract would have had a non-material effect on the earnings per share of the Company (on a consolidated basis) and a non-material effect on the net tangible assets per share of the Company (on a consolidated basis) for that financial year.
Interest of Directors and Controlling Shareholders
None of the directors or controlling shareholders of the Company has any interest, direct, or indirect, in the Amendment. There are also no new directors proposed to be appointed to the Company in connection with the Amendment.
Please be informed accordingly.
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