Awilco Drilling PLC

Investor Presentation • May 25, 2022

AWILCO DRILLING Q1 2022 PRESENTATION

25 May 2022

DISCLAIMER

This presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated («relevant persons»). Any person who is not a relevant person should not act or rely on these presentations or any of its contents. Information in the following presentations relating to price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to future performance of such investments. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Awilco Drilling PLC or any affiliated company thereof. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions.

This presentation has been prepared for information purposes only. It has not been prepared for the purposes of, and does not form part of the subscription material for, any offering of securities.

This presentation may include certain forward-looking statements, estimates, predictions, influences and projections with respect to anticipated future performance and as to the market for products or services which may reflect various assumptions made by the management of the Company. These assumptions may or may not prove to be correct and no representation is made as to the accuracy of such statements, estimates, projections, predictions and influences. These statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. The information and opinions contained in this presentation are subject to change without notice and the Company assumes no responsibility or obligation to update publicly or review any of the forward-looking statements contained herein.

AGENDA

• 1. Main Events
• 1. Q1 2022 Results
• 1. Disputes Update
• 1. Summary
• 1. Q&A

1. Main Events

MAIN EVENTS

• No revenue earned in Q1, EBITDA loss of USD 6.2 million, Net loss of USD 6.6 million
• WilHunter sold for environmentally responsible recycling in Turkey
  • Rig delivery expected mid-June
• WilPhoenix sold to Well-Safe Solutions Ltd. for USD 15.5 million
  • Rig delivery planned on or about 1 June
• Short-term shareholder loan of up to USD 4 million secured as bridge financing
• Preparations for the arbitration cases against Keppel FELS continues

2. Q1 2022 results

Q1 2022 INCOME STATEMENT

Condensed statement of comprehensive income

in USD thousands, except earnings per share

	Q1 2022	Q1 2021
	(unaudited)	(unaudited)
Contract revenue	-	12,466
Reimbursables	-	155
Other revenue	-	19
	-	12,640
Rig operating expenses	2,611	5,162
Reimbursables	-	24
General and administrative expenses	3,625	3,762
Depreciation	17	2,485
Impairment	205	-
	6,458	11,433
Operating (loss)/profit	(6 ,458)	1,207
Interest income	0	-
Interest expense	(8)	(16)
Other financial items	(123)	88
Net financial items	(131)	72
(Loss)/Profit before tax	(6 ,589)	1,279
Tax expense	-	(1)
Net (loss)/profit	(6 ,589)	1,278
(loss)/profit Total comprehensive	(6 ,589)	1,278
Attributable to shareholders of the parent	(6 ,589)	1,278
Basic and diluted (loss)/profit per share	(0 .12)	0.02

Q1 2022 BALANCE SHEET

Condensed statement of financial position

in USD thousands

	31 03 2022	31 03 2021
	(unaudited)	(unaudited)
Rigs , machinery and equipment	15 747 ,	64 482 ,
Right-of-use asset	-	1 016 ,
Deferred tax asset	-	15
	15 747 ,	65 513 ,
Trade and other receivables	269	4 711 ,
Prepayments and accrued revenue	542	4 873 ,
Inventory	159	3 026 ,
Cash and cash equivalents	1 911 ,	13 195 ,
	2 881 ,	25 805 ,
Total assets	18 628 ,	91 318 ,
Paid in capital	218 905 ,	218 905 ,
Retained earnings	(214 596) ,	-141 758 ,
	4 309 ,	77 147 ,
Trade and other creditors	743	1 139 ,
Accruals and provisions	4 325 ,	708 5 ,
Current payable tax	9 251 ,	66
	14 319 ,	6 913 ,
Total equity and liabilities	18 628 ,	84 060 ,

3. Disputes Update

DISPUTES UPDATE

• Arbitration processes related to the terminations of new build Rig 1 and Rig 2 continue
  • Claim amounts to a total of USD 97.7 million plus interest
  • Tribunal hearing for Rig 1 has been scheduled to commence in October 2022 with award expected in Q1 2023, the hearing for Rig 2 has been scheduled to commence in May 2023
• WilHunter (UK) Ltd. Tax Dispute
  • The Rule 38 application demanding the Tribunal's decision to be set aside and re-made was dismissed on 6 December 2021
  • Liquidation process in progress for WilHunter (UK) Ltd.
  • This is considered a liability of the subsidiary and not the parent company

SUMMARY

• Both WilPhoenix and WilHunter are sold, however, new rig opportunities are evaluated on a caseby-case basis
• The organisation will be sized to manage the arbitrations while retaining the operational flexibility/capability to assess new investment opportunities as they arise
• Short-term shareholder loan secures bridge funding until proceeds from rig sales are received
• Actively managing the arbitration processes towards Keppel FELS to receive refunds of paid instalments