Paragon Offshore delays ‘Prospector 6’ delivery

  • Business & Finance

Paragon Offshore, an offshore drilling contractor, has signed an agreement with Shanghai Waigaoqiao Shipbuilding Co., LTD., to extend the delivery date of the jack-up rig Prospector 6 to April 15, 2016. 

Paragon said that, under the terms of the agreement, no payments are due to the shipyard until the delivery date and upon completion of the delivery protocol.

The Prospector 6 is a high specification Friede and Goldman JU-2000E heavy-duty and harsh environment jack-up. The rig will be capable of operating in water depths up to 400 feet, with derrick rated for static hook loads of 2,000,000 pounds, and maximum variable deck loads of 14,300,000 pounds.

Paragon also added that certain wholly owned subsidiaries of the company, which were part of the company’s acquisition of Prospector Offshore Drilling S.A., have closed the combined $300 million sale-leaseback financing facility that was announced on June 4, 2015. Net of fees and expenses, Prospector received net proceeds of approximately $292 million.

“The successful completion of these two milestones is a fulfillment of the plans we laid out earlier this year,” said Randall D. Stilley, President and Chief Executive Officer of Paragon.

“The financing proceeds have substantially increased the company’s liquidity. We are continuing to evaluate potential options for using the proceeds to strengthen our balance sheet and enhance shareholder value. In the meantime, our business continues to generate cash flow through our safe, reliable, and efficient operations and we are actively reducing our operating expenses both in the office and the field.

“Moreover, our recent announcement of the addition of a combined total of six years of backlog on three of our jackup units illustrates the ongoing desirability of our standard specification assets while many newbuild rigs continue to sit idle.” 

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