Dolphin Drilling AS — M&A Activity 2023

Jun 22, 2023

Dolphin Drilling to acquire two semi-submersible rigs with robust backlog, consolidating the standard rig segment

Dolphin Drilling to acquire two semi-submersible rigs with robust backlog, consolidating the standard rig segment

(Oslo, 22 June 2023) Dolphin Drilling AS ("Dolphin Drilling") (OSE: DDRIL)

announces the acquisition of two semi-submersible rigs, the Paul B. Loyd Jr. and

the Transocean Leader for a total of USD 61.5 million (plus an additional USD 3

million) (the "Transaction").

Dolphin Drilling is contemplating a private placement of approx. USD 60 million

to finance the Transaction (the "Private Placement").

"We are excited about this acquisition, which not only expands our fleet but

also enhances our earning visibility," says Bjørnar Iversen, CEO of Dolphin

Drilling.

"This transaction signifies an important stride for Dolphin Drilling as we

showcase our operational platform's capacity to incorporate additional assets

and generate immediate, robust cash flows for our shareholders. The addition of

these efficient rigs allows us to further consolidate the midwater rig segment

in a tightening market, characterised by historically low supply and surging

dayrates across offshore basins.," Iversen elaborates.

Under the agreement, Dolphin Drilling will acquire the Paul B. Loyd Jr. and

Transocean Leader from Transocean. Currently, the Paul B. Loyd Jr. is under

contract with Harbour Energy in the UK with the firm period slated to last until

September 2024, and the Transocean Leader is stacked in the UK.

Dolphin Drilling is contemplating a private placement of new shares raising

gross proceeds of the NOK equivalent of USD 60 million to finance the

Transaction (the "Private Placement"). The Private Placement is supported by

Dolphin Drilling's two largest shareholders, Strategic Value Partners LLC and

S.D. Standard ETC Plc, who have pre-committed to subscribe in the Private

Placement for USD 12.5 million and USD 7.5 million, respectively. Further,

Strategic Value Partners LLC and S.D. Standard ETC Plc have committed to support

Dolphin Drilling through a USD 15 million revolving facility. In addition, the

CEO, COO and CFO, and other senior members of the management group at Dolphin

Drilling have committed to participate in the Private Placement.

The agreement is subject to certain customary closing conditions which must be

satisfied before the Transaction can be completed.

More information on the contemplated Private Placement can be found in a

separate announcement from Dolphin Drilling announced on 22 June 2023.

The agreement with Transocean is conditioned upon approval to novate Paul B.

Loyd Jr. existing UK HSE safety case to Dolphin Drilling and customary closing

conditions and is expected to be closed during the second half of 2023.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Ingolf Gillesdal, VP Corporate

Finance and Investor Relations Dolphin Drilling AS on 22 June 2023 at the time

set out in this notice on behalf of the Company.

ENDS

For further information, please contact:

Bjørnar Iversen, Chief Executive Officer, Mobile: +47 932 40 417

Ingolf Gillesdal, Corporate Finance and Investor Relations, Mobile: +47 920

45 320, Email: Ingolf.gillesdal@dolphindrilling.com

Dolphin Drilling | Error! Hyperlink reference not valid.Dolphin Drilling is a

leading harsh environment drilling contractor for the offshore oil and gas

industry. Dolphin Drilling owns a fleet of three high-technical standard 4[th]

and 5[th] generation enhanced Aker H3 units, Borgland Dolphin, Blackford

Dolphin, and Bideford Dolphin, operated by an experienced team with a strong

operational track record. The company has offshore and onshore employees, and

onshore locations in Norway, Scotland, Brazil, Nigeria, and Mexico.