The Boards of Fred Olsen Energy and R&B Falcon have approved the transaction subject to definitive agreement. The price for the shares is $71 million USD. Fred Olsen Energy will take over the five-year management contract for the Navis Explorer I for a consideration of $12 million USD. The agreement is subject to satisfactory technical and legal due diligence on the part of Fred Olsen Energy and final approval of the drillship for operation. These conditions are expected to met by mid-July, at which time the transfer of shares will take place. During the first year R&B Falcon will manage the vessel against the contractual management fee and procure a transfer of operational experience to Fred Olsen Energy.