Petrojack ASA has negotiated terms and conditions for a possible sale of all three rigs with the highest bidder of the whole fleet (all three rigs).
Based on the current status of these negotiations, the management and board of directors of Petrojack ASA estimate that a sale of all three rigs to Awilco and Sinvest will leave Petrojack ASA with a net asset value of approximately NOK 24.50 - 25.50 per share, on a debt free and all cash basis (possible latent tax, if any, have not been considered). The estimate is based on an USD/NOK exchange ratio of 6.58, and the gross price "just above US $200 million per rig" is adjusted for certain variation orders and other costs associated with a sale.
The board of directors of Petrojack ASA has not made any decision regarding a sale of rigs. It is the intention of the board of directors to call for an extraordinary general meeting to vote over a sale of the rigs, if the ongoing negotiations proceed towards a letter of intent.
Petrojack ASA is obliged to pay the second 10% installment on Petrojack II in the near future, and the board of directors of Petrojack ASA will consider raising new equity through a private placement in the near future.
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