GRIC Grabs 5 Newbuilds for Expansion Program
As part of its growth ambitions, Global Rig Company ASA has entered into agreements to acquire 5 additional newbuilds, all expected to be delivered during second half of 2008.
GRIC is in advanced negotiations for securing employment contracts for all its new rigs.
The expansion program is fully funded through a Private Placement of 36.8 million new shares at NOK 9.0 per share (approx USD 65 million) fully subscribed by one institutional investor, expected to be closed during mid-July 2008 pursuant to approval by the Company's ordinary and extraordinary general meetings to be held June 30 and on July 11, respectively.
"We are pleased that GRIC has secured funding to facilitate our growth ambitions in the US land rig market where we see continued growth potential for new and sophisticated land rigs capable of drilling complex wells. Our contract portfolio will secure strong profitability over the next couple of years, and our strong equity base following the equity-financed expansion should facilitate further organic growth in the future," said CEO Jan Henning Skaara and Chairman Sven Lang.