SeaBird in talks to buy BOA Galatea and BOA Thalassa seismic vessels

Norwegian seismic acquisition company SeaBird is in talks to expand its fleet with two seismic vessels owned by BOA Offshore.

SeaBird said on Thursday that it was in exclusive process to buy the BOA Galatea and BOA Thalassa vessels in a transaction worth 185 million NOK ($21.7 million).

“The BOA vessels are well suited for source and 2D operations, as well as EM seabed logging, for which BOA Thalassa is currently contracted with EMGS ASA until September 2019 with options for EMGS ASA to extend for three periods of six months each,” SeaBird said.

BOA Galatea and BOA Thalassa were built in Norway in 2008 and 2009, respectively,  for an original construction cost of approximately NOK 650 million in total.

Both vessels are rigged and fully operational as EM vessels, and are well suited for upgrade to high-end 2D / source capability, SeaBird said.

“The company estimates such upgrade to cost approximately USD 11 million per vessel. The net investment for BOA Galatea is expected to be limited to USD 8 million, as the company can use existing unutilized equipment in the upgrade,” SeaBird says.

To finance the acquisition and the upgrade of the Boa Galatea, SeaBird Exploration is contemplating a private placement of new shares in the company raising gross proceeds of minimum NOK 225 million and a maximum of NOK 250 million.

As for the terms of the vessel acquisition, SeaBird said the process is based on irrevocable acceptances from a majority of BOA SBL bondholders.

As part of the transaction, certain BOA SBL bondholders have elected to receive consideration in the form of new shares of the company valued at the offer price for an amount corresponding to approximately NOK 54 million, which will come in addition to the private placement.

Had to turn down work

Hans Petter Klohs, Chief Executive Officer in SeaBird, said: “As a consequence of increased demand in all our regions, we have had to turn down work in the first quarter of 2019 due to scheduling conflicts. To be able to pursue a strong and diversified pipeline of contract leads in all segments, we have been evaluating several attractive opportunities for vessel capacity expansion. The BOA Galatea and BOA Thalassa will be excellent additions to our operational fleet, being ideally suited for source and 2D operations in addition to EM seabed logging.

“We are excited to have developed this transaction which will provide us with two very suitable quality vessels at a very attractive price further strengthening our position and service offering in the 2D, source and niche 3D markets.”

To remind, SeaBird started its fleet expansion last year when it bought the Geowave Voyager seismic vessel, fully rigged with 40 kilometers streamer and dual source for $17 million from CGG.

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