Petrojack will issue 4,779,000 new shares, each with a par value of NOK 5, at a subscription price of NOK 7.15 per share. Total gross proceeds from the private placement will amount to NOK 34,169,850.
Following registration of the private placement, the share capital of Petrojack will increase from NOK 238,980,000 to NOK 262,875,000, and the number of shares will increase from 47,796,000 to 52,575,000, corresponding to an increase of 9.99%.
The proceeds from the private placement will be used as part of the required equity for the construction of Petrojack's second jack-up rig (option 1), to be built by Jurong Shipyard in Singapore. Petrojack has been offered approximately 80% financing from Jurong, for the construction of the second rig (option 1). The yard financing for the second rig (option 1) must be re-financed before delivery of the rig in January 2008.
The proceeds from the private placement, as well as available cash raised in connection with Petrojack's stock exchange listing, will fund Petrojack's equity obligations related to the construction of the second jack-up rig (option 1) until the first half of 2006. By the end of the second quarter of 2006 (coinciding with steel cutting), another approximately MNOK 70 in new equity is required for full funding of the new rig (option 1) until delivery, excluding working capital for general corporate purposes.
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