Petrojack will issue 5,250,000 new shares, each with a par value of NOK 5, at a subscription price of NOK 11.10 per share. Total gross proceeds from the private placement will amount to NOK 58,275,000.
Following registration of the private placement, the share capital of Petrojack will increase from NOK 262,875,000 to NOK 289,125,000, and the number of shares will increase from 52,575,000 to 57,825,000, 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 third jack-up rig (rig option 2) to be built by Jurong Shipyard Pte Ltd. in Singapore. The final order for Petrojack's third jack-up rig is subject to board approval of the final terms in Jurong / SembCorp Marine.
Petrojack must secure approximately US $31.5 million in equity financing for its third rig (rig option 2). Petrojack has been offered approximately 80% pre-delivery financing from Jurong on the same terms as for Petrojack II (rig option 1). As previously announced by Petrojack, another approximately US $11 million in equity is required for full funding until delivery (excluding working capital for general corporate purposes) of Petrojack II (rig option 1), in the first half of 2006.
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