Petrojack Issues Preliminary Q2 Results

Petrojack ASA

Petrojack ASA on Tuesday issued its preliminary results for the second quarter of 2006.


Petrojack was incorporated on October 4, 2004 by Larsen Oil & Gas AS. Larsen Oil & Gas AS is engaged as manager for Petrojack ASA.

Petrojack has entered into EPC contracts with Jurong Shipyard for the construction of four jack-up rigs. The jack-up rigs have an operating water depth capacity of 375 feet and drilling depth capacity of approximately 30,000 feet.

The rig price for the first jack-up rig is MUSD 125.3. The Contract Price including PC-sum and financing during the construction period amounts to MUSD133.6.

The rig price for the second jack-up rig is MUSD 127.1 (MUSD 139.9 including PC-sum and financing) with 80 % yard financing during the construction period. Delivery date is on or before 15 January 2008.

The rig price for the third jack-up rig is MUSD 131.2 (MUSD144.2 including PC-sum and financing) with 80 % yard financing during the construction period. Delivery date is on or before July 2008.

The rig price for the fourth jack-up rig is MUSD 180 (including PC-sum and financing).

During the third quarter of 2006 Petrojack has sold Rig I and III for a total amount of MUSD 420. The sale will be incorporated in the accounts for the third quarter 2006.

Construction progress

There have been no significant lost time accidents, and the construction processes are developing according to schedule and on budget.

Financial information

The financial data have been prepared in accordance with the International Financial Reporting Standards (IFRS). No material revenues are expected before delivery of the rigs.

Operating loss for the second quarter 2006 came to MNOK (8.9). Accumulated operating loss for the first half year came to MNOK (18.6) The expenses consist mainly of costs related to the management of the company, hereunder project management costs and technical fees. Net financial items for the 2nd quarter came at MNOK (17.0), and the net financial items for the first half year of 2006 amounted to MNOK (25.7) as a result of currency losses. The net result for the 2nd quarter of 2006 was equal to MNOK (25.9) and result for the first half year MNOK (44.3).

As per June 30, 2006 total assets amounted to MNOK 2.200.1, of which MNOK 757.4 was related to capitalization of construction in progress of the jack-up units. Initial project costs and project management costs related to the project management agreements are included in the capitalized amounts. Petrojack has no outstanding or authorized stock options, warrants or convertible debt. The share capital is NOK 324.875.000. The number of shares is 64.975.000.


The jack-up market has continued to develop positively, with improving day rates and rig utilization. The utilization for modern jack-up rigs is close to 100%, and the day-rates for high specification jack-ups are in the USD 180,000 – 200,000 range.

The average age of the global jack-up fleet is approximately 23 years. There are currently approximately 61 jack-up rigs under construction, including options, corresponding to approximately 15% of the global jack-up fleet. In spite of the significant newbuilding activity, the expected medium-term demand for modern rigs is expected to remain strong. Petrojack’s 2 jack-up rig will be delivered on or before 15 January 2008.