Standard Drilling to Raise $30 Million in Private Placement

Standard Drilling ASA has retained Carnegie ASA and Pareto Securities ASA to advise on and effect a private placement directed towards professional and international investors by raising gross proceeds of up to US $30 million.

The proceeds will primarily be used to secure financing and/or exercise the option on rig 3 and 4 (subject to EGM decision) and to negotiate earlier delivery on rig 2, 3 and 4 (approximately 12 additional rig months in total).

Standard Drilling will issue up to 46,600,000 ordinary shares at an issue price of NOK 4.25 per share. Existing shareholders may be given priority.

Standard Holding AS and associated partners have committed to subscribe for a number of shares in the private placement (at the subscription price) constituting approximately US $13 million.

The private placement is subject to the approval by the board of directors of Standard Drilling.