Sevan Marine ASA has evaluated the possibility of utilizing the SSP technology as the basis for a drilling unit with capabilities of operating in ultra-deep water and harsh environment areas. Accordingly, the Board has resolved to establish Sevan Drilling.
In order to part-finance the construction of the first SSP drilling unit and to raise necessary equity in time to exercise its contractual rights for the construction and outfitting of the unit,
the Company's board of directors has proposed that a Private Placement of US $230 million be carried out. The Private Placement will be directed towards existing shareholders, and institutional and professional investors.
In this respect, a Company Presentation has been prepared, the key elements of which
- The Company has secured rights to enter into contracts with construction yards and
equipment suppliers for at least two SSP drilling units. Project management,
engineering and yard supervision will be handled by Sevan Marine.
- The first SSP drilling unit shall be owned by a 100% owned subsidiary, Sevan
Drilling. The Company intends to apply for a listing of Sevan Drilling on the Oslo
Stock Exchange within 12 months.
- The SSP drilling unit is characterized by its unique variable deck load capacity,
extreme deepwater drilling capability, dual drill tower, high station keeping capability
with full DP class 3, optimized drilling efficiency in harsh environments and
environmentally sensitive areas.
- The estimated all-in delivery cost of the first SSP drilling unit is USDm 430, which is
contemplated financed through the Private Placement of NOK 1,550 million (approx.
US $230 million) and through external debt financing of approximately US $200 million.
Following the Private Placement, a subsequent equity issue will be directed towards
existing Sevan Marine shareholders who were not invited to subscribe in the Private
- The subscription price will based on a book-building process and will be set in an
Extraordinary General Meeting to be held on March 7, 2006. The minimum allocation
will be the NOK equivalent of EUR 50,000. The shares will be trading ex. right to
participate in the subsequent offering as of March 8, 2006.
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