Cooperation Agreement Enables Further Development of Deep Well AS

The owners of DeepWell AS (DW), where Solstad Offshore ASA (SOFF) have an ownership share of some 40%, have entered into a cooperation agreement with HitecVision AS (HV) to enable further development of the company.

DW will in the near future do a share issue towards HV of NOK 285 mill. The share issue is based on an enterprise value of NOK 400 mill. SOFF’s ownership share in DW after the share issue will be in excess of 20%.

DW is a Norwegian well intervention company focusing on high-tech based wireline-services and integrated operations. DW has their main office and base at Karmøy and a department office in Stavanger. The company has 124 employees with some NOK 190 mill in revenues for 2012. Estimated revenues for 2013 are some NOK 220 mill. DW has in addition to the forthcoming share issue secured further growth capital through the cooperation agreement for an additional NOK 200 mill.

Deep Well’s ambition is to grow the company further on the Norwegian Continental Shelf and to develop and expand the company’s product and service portfolio as well as to establish DW in the international well intervention market.

Press Release, December 23, 2013