Dolphin Drilling AS — M&A Activity 2024

Feb 15, 2024

Dolphin Drilling close transaction and commences operations for acquired Transocean rigs

Dolphin Drilling close transaction and commences operations for acquired Transocean rigs

(Oslo, 15 February 2024) Dolphin Drilling AS (Dolphin Drilling, OSE: DDRIL)

announces the commencement of operations and the final transfer of ownership for

the two acquired rigs from Transocean. The semi-submersible Paul B. Loyd, Jr.

has a firm revenue backlog of USD 280 million, and the finalization of this

acquisition will position Dolphin Drilling as a leading offshore drilling

contractor in the UK sector.

"To commence operations is an important milestone for Dolphin Drilling as we

showcase our operational platform's capacity to incorporate additional assets

and generate immediate, robust cash flows for our shareholders. We see strong

interest for our offshore floater rigs in the UK sector, providing safe and

efficient operations for our clients," says Bjørnar Iversen, CEO of Dolphin

Drilling.

Reference is made to the announcement 22 June 2023 regarding the acquisition of

two semi-submersible rigs, the Paul B. Loyd, Jr. and the Transocean Leader. The

rigs were acquired for net USD 50 million, whereof USD 6.1 million was paid in

Q3 2023 (gross USD 64.5 million less net cash flow earned since June 2023). The

estimated EBITDA from the firm backlog cover for more than three times the net

acquisition price.

The Paul B. Loyd, Jr. has a firm revenue backlog of USD 280 million with Harbour

Energy Ltd. (Harbour Energy), the largest oil and gas producer in the UK.

Following the closing of the rig acquisition the Paul B. Loyd, Jr. will be under

contract with Harbour Energy in the UK with the firm period until February 2028,

with another 5 x 1 year option periods thereafter. In addition, the company has

entered into a 5+5 year master service agreement (MSA) with Harbour Energy.

"The MSA with Harbour Energy allows Dolphin Drilling to work in close strategic

cooperation with one of the largest North Sea E&P companies. The UK drilling

market is showing positive signs and the Dolphin Drilling fleet offers

flexibility to take on all floating rig requirements in the years to come

including exploration drilling, production drilling and plug and abandonment

work across the UK sector. We hold a rich history as a drilling pioneer with a

long track-record in the UK, where we now aim to build the position as the

leading drilling contractor," Iversen concludes.

ENDS

For further information, please contact:

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

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

Dolphin Drilling | www.dolphindrilling.com

Dolphin Drilling is a leading harsh environment drilling contractor for the

offshore oil and gas industry. Dolphin Drilling owns a fleet of five high

technical standard 4th and 5th generation enhanced Aker H3 and H4 units,

Borgland Dolphin, Blackford Dolphin, Bideford Dolphin, Paul B. Loyd, Jr. and

Dolphin Leader operated by an experienced team with a strong operational track

record. The company has offshore and onshore offices and operations in Norway,

Scotland, Brazil, and Nigeria.