Standard Drilling back in offshore rigs game

S.D. Standard Drilling is getting back into the drilling rigs game, but this time as an investor.

Standard Drilling back in the rigs game

To remind, the company had, until late last year described itself as “a young offshore drilling contractor”, but then decided to sell seven under-construction jack-up rigs and to seek for “new investment opportunities within offshore and oil service related segments.”

To remind, Standard Drilling last week announced it had acquired a 25.27% share in Prospector Offshore Drilling, a drilling contractor owning two newly built jack-up rigs under contracts with French oil giant Total.

Related: Standard Drilling: No Rigs, No Need for COO

The company paid NOK 420 million (USD 65.9 million)  for 24 million shares in PROS at NOK 17.5 per share.

In a filing to the Oslo Stock Exchange today, Standard Drilling has explained the move as a way to develop and increase its value “through ownership in a company [Prospector Offshore Drilling] which the Board deems as an exciting prospect for securing return on investment for the Company and its shareholders.”

As for the target company, Prospector Offshore Drilling, the company last week announced that Total E&P UK Limited and ELF Exploration UK Limited completed the preparation of the location for Prospector 1 jack-up rig. Also, the company’s second rig Prospector 5 has arrived in Invergordon, Scotland and is undergoing its acceptance process before mobilizing to Total’s first drilling location to begin its three year charter contact.

 

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Offshore Energy Today Staff, September 15, 2014

 

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