KNOC Contracts Land Rig 'KS Discoverer 1' for Drilling in Kurdistan

KS Energy Limited (the Company and together with its subsidiaries, the Group) disclosed Tuesday that Atlantic Onshore Services BV, a subsidiary of KS Drilling Pte Ltd (KS Drilling), has been awarded a new contract for the provision of drilling services and the charter of “KS Discoverer 1”, the Group’s 1,500HP onshore drilling rig, with Korea National Oil Corporation (KNOC).

Work in Kurdistan, Iraq is expected to begin in early 2Q 2015 and shall continue until the completion of one well, with an anticipated duration of 150 days. KNOC has the option to extend the contract for one further well, with an anticipated duration of another 150 days. The total value of the new contract, including the optional well, is expected to be around $7.0 million.

The new contract is not expected to have any material effect on the earnings per share and net tangible assets per share of the Company for the financial year ending Dec. 31.

None of the Directors or Substantial Shareholders of the Company has any direct, or indirect, interest in the above mentioned transaction, other than for their respective interests, through their shareholdings and/or directorships, as the case may be, in the Company.

KS Drilling, an 80 percent-owned subsidiary of the Company, is an investment holding company. The main activities of KS Drilling’s subsidiaries are in the provision of onshore and offshore drilling services, rig management and support services, oilfield equipment ownership and leasing.