Singapore: Ezion Announces Charter Contract for Service Rig and Liftboat Divestment

February 15, 2012

The Board of Directors of Ezion Holdings Limited announces that it has secured a charter contract with a value of up to USD 80.3 million over a 4 year period to provide a second North Sea Class service rig to be used by a European oil major to support its oil & gas activities in offshore Denmark.

The Service Rig is expected to be deployed and working in offshore Denmark by the 4th Quarter of 2012 after its refurbishment and upgrading. The above mentioned project will be funded through internal resources as well as bank borrowings.

Liftboat Divestment

The Company today also announces that it has signed a term sheet with a group of investors to sell 100% of the shares of its wholly-owned subsidiary, Teras Conquest 4 Pte Ltd (“Teras Conquest 4”), the asset holding company which owns one unit of Liftboat for US$25,000,000.00 (the “Divestment”). The consideration of US$25,000,000.00 was derived based on a valuation of US$77,500,000.00 for the Liftboat and is payable upon the completion of the Divestment. The Group expect to sign a share purchase agreement to complete the transaction by the first quarter of 2012.

After the Divestment, the Group will bareboat the Liftboat back from Teras Conquest 4 for 6 years in order for the Group to fulfill its contractual obligations to its customers.

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World Maritime News Staff, February 15, 2012; Image: Teras