SD Standard Drilling Plc has entered into an agreement for the sale of one rig (B340) under construction for a total consideration of USD 223m. The buyer is UMW Rig Asset (L) Ltd, a wholly owned subsidiary of UMW Oil & Gas Group of Companies incorporated in Malaysia.
Final closing of the transaction is expected to take place on June 10th, 2013.
The sale of the rig will give an estimated net profit of USD 29m to the company . After the sale and the USD 0.26 per share dividend distribution that the Company announced on May 21 has been completed, the book equity of Standard Drilling will be approximately USD 72m or USD 0.27 per share (NOK 1.57 per share).
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Net cash proceeds from the sale of B340 is USD 68.4m. After the financial and legal closing of the sale of B340 and the USD 0.26 per share dividend distribution as announced on May 21, 2013 it is expected that the cash position of the companywill be USD 73 million or USD 0.28 per share (NOK 1.62 per share). Following sale of B340 Standard Drilling will not have any more rigs under construction.