All units are currently operating on contracts with major international oil companies. The average duration of the fixed contracts is approximately 2.5 years, and the first rig is available for new contracts from fourth quarter 2008. From Q3 2008, all rigs will operate at day rates above US $105,000 - $120,000 per day, which in total for the three rigs is expected to generate a yearly EBITDA in the range of USD 60 million. The company is optimistic for a continuing strengthening of the tender barge market.
GGS will aim for the following financial structure of the transaction:
- Use up to US $30 million of free liquidity
The transaction is subject to the drilling contracts related to the tender barge rigs being novated to GGS without any limiting restrictions within 45 days after signing of the MoA. Included in the total consideration there is a 1% fee or US $2.1 in commission to Ferncliff AS and Spencer Energy AS for introducing, executing and implementing both the transaction and the financial structure. Ferncliff has nominated GGS to this transaction and GGS is awaiting the sellers' final approval of the nomination.
The transaction is estimated to be finalized in the fourth quarter 2007.
Pareto, CAR and Fearnleys acted as financial advisors.
Most Popular Articles
From the Career Center
Jobs that may interest you