Petrolia Drilling Purchases Drilling Equipment and Increases Shares in IOT

In connection with Petrolia Drilling ASA entering into a set of agreements to transfer drilling equipment and other removable equipment to D/S Valentin Shashin / D/S Deep Venture, Petrolia Drilling ASA has made the following decisions:

  • Petrolia Drilling ASA has exercised its purchase option in relation to Independent Oil Tools ASA, and has purchased leased drilling equipment at a previously agreed price of NOK 64,441,700.
  • As partial payment for the equipment purchase price, Petrolia Drilling ASA has made a private placement against Independent Oil Tools ASA. The private placement includes of 93,777,030 new shares, each with a nominal value of NOK 0.50 per share, at a previously agreed upon subscription price of NOK 0.55 per share, corresponding to a total subscription amount of NOK 51,577,366.50.
  • In addition, Independent Oil Tools ASA has exercised 23,389,697 subscription rights granted by a General Meeting in Petrolia Drilling ASA on 8 March 2004. Each subscription right enables Independent Oil Tools ASA to subscribe one new share in Petrolia Drilling ASA at NOK 0.55 per share, corresponding to a total subscription amount of NOK 12,864,333.50.
  • Petrolia Drilling ASA intends to use the proceeds from the exercise of the subscription rights to pay the remaining purchase price for the drilling equipment purchased from Independent Oil Tools ASA, so that Petrolia Drilling ASA has paid the drilling equipment in full.

After the above-mentioned private placement and exercise of subscription rights, the share capital of Petrolia Drilling ASA will increase from NOK 163,058,674, divided into 326,117,347 shares, to NOK 221,642,037 divided into 443,284,074 shares.

The fully diluted number of shares in Petrolia Drilling equals 485,459,202 (including remaining subscription rights and convertible bonds). Independent Oil Tools ASA holds an additional 11,716,673 subscription rights following the exercise of subscription rights described above. The remaining subscription rights must be exercised before March 8, 2006. All convertible bonds in Petrolia Drilling ASA must be converted to equity before February 20, 2006.


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