Awilco Drilling PLC

Investor Presentation • Feb 25, 2020

Q4 2019 presentation

25 February 2020

Agenda

1. Q4 performance

2. Tender and Market activity

• ^o UK Status
• ^o Newbuild Status
• ^o Tender activity and employment strategy for Newbuilds
• ^o Performance advantages & ESG commitment

3. Financing

• ^o Status 2nd instalment Rig #1
• ^o Debt target 60%
• ^o Beauty of financing flexibility

4. Q&A

1. Q4 performance

Q4 2019 Income Statement

Condensed statement of comprehensive income

in USD thousands, except earnings per share	Full Year			Full Year
	Q4 2019	2019	Q4 2018	2018
	(unaudited)	(unaudited)	(unaudited)	(audited)
Contract revenue	8 097	37 004	10 192	55 917
Reimbursables	4	(8)	40	586
Other revenue	219	1 140	4	19
	8 320	38 136	10 236	56 522
Rig operating expenses	6 061	24 765	5 520	27 342
Reimbursables	3	14	15	263
General and administrative expenses	2 801	9 153	53	8 766
Depreciation	3 257	11 586	3 151	13 425
Impairment	23 000	23 000	25 000	25 000
	35 122	68 518	33 739	74 796
Operating loss	(26 802)	(30 382)	(23 503)	(18 274)
Interest income	273	949	802	1 943
Interest expense	(14)	(14)	-	(4 671)
Other financial items	(303)	(717)	(466)	(167)
Net financial items	(44)	218	336	(2 895)
(Loss)/Profit before tax	(26 846)	(30 164)	(23 167)	(21 169)
Tax expense	(147)	(427)	(1 013)	(1 695)
Net (loss)/profit	(26 993)	(30 592)	(24 180)	(22 864)
Total comprehensive (loss)/income	(26 993)	(30 592)	(24 180)	(22 864)
Attributable to shareholders of the parent	(26 993)	(30 592)	(24 180)	(22 864)
Basic and diluted earnings per share	(0,49)	(0,57)	(0,49)	(0,52)

Q4 2019 Balance Sheet

Condensed statement of financial position

in USD thousands

	31.12.2019	31.12.2018
	(unaudited)	(audited)
Rigs, machinery and equipment	201 918	186 761
Right-of-use asset	1 417	0
Deferred tax asset	108	461
	203 443	187 222
Trade and other receivables	8 908	9 075
Prepayments and accrued revenue	502	2 862
Inventory	4 946	4 809
Cash and cash equivalents	41 249	63 865
Current tax	0	340
	55 605	80 951
Total assets	259 048	268 173
Paid in capital	218 906	198 719
Retained earnings	32 079	62 671
	250 985	261 390
Trade and other creditors	1 284	1 213
Accruals and provisions	6 708	5 504
Current tax payable	71	66
	8 063	6 783
Total equity and liabilities	259 048	268 173

2. Tender and Market activity

UK Status

• Letter of Intent no. 1 for three P&A wells secured with commencement early May 2020 estimated at 100 days
• Letter of Intent no. 2 secured with Serica Energy (UK) Ltd. for one well estimated at 45- 70 days with commencement early September 2020
• Positive outlook for follow-on work for WilPhoenix beyond secured programmes

Healthy Market Outlook for Tier 1 HE rigs

11

In tender process for several term contracts

Tender activity and employment strategy for the Newbuilds

Environmental footprint

We commit to achieving this in 2021!

- 40% in 2030

Norsk Olje og Gass: GHG reduction goals*:

Offshore headcount can be reduced by 20-30%

With our technology we can preform far more tasks with less people

Digitization and Service Integration

Unique features differentiating ourselves significantly from peers

3. Financing

Financing

• 75% of the 2nd instalment of Rig #1 postponed to mid-June
• Next equity issue postponed accordingly
• All equity to be raised on a "when needed" basis
• Debt target is 60%
• Wide range of financing alternatives being explored (to optimize value creation for shareholders)
• Financing structure will depend on term and value of rig contract

Exciting times ahead

• Thrilled to secure more work in the UK
• Important milestone reached with Rig #1 leaving China
• In tender process for several term contracts for newbuilds
• Newbuilds will establish a new benchmark
• Beauty of financing flexibility