Vantage Drilling Announces Investment in Joint Venture for
Construction of New Drillship
HOUSTON, TX -- (Marketwire) -- 11/20/12 -- Vantage Drilling Company
("Vantage") (NYSE MKT: VTG) announced today that it has entered into
a joint venture with an affiliate of Skeie Group and other investors
for purposes of constructing a new, high specification drillship at
STX Offshore & Shipbuilding Co. Ltd.'s yard in South Korea. Through
its investment of $31 million in the joint venture entity, Sigma
Drilling Ltd., Vantage will initially own approximately 42% of the
equity in Sigma.
Sigma is a newly-created entity formed for the purpose of
constructing a BT-UDS Dynamical Positioned Ultra Deepwater Drillship.
The vessel will be capable of and equipped to operate in 12,000 ft
water depth, have 25,000 metric ton variable deck load, outfitted
with a dual activity derrick, equipped with two seven-ram blow out
preventer units and capable of storing up to twelve subsea X-mas
trees. The vessel will feature a cutting-edge drilling package that
is at the forefront of drilling technology. Delivery of the Vessel is
expected in November 2015.
The initial equity funding by the partners is expected to be
sufficient to cover substantially all of the shipyard and other
capital expenditures which require payment prior to the completion
and delivery of the drillship.
Paul Bragg, Vantage's Chairman and CEO, commented, "We view this
high-spec drillship construction project as an excellent opportunity
for Vantage to further grow our presence in the expanding
ultra-deepwater drilling market, with only a small capital
commitment. Our partners have been some of the most innovative and
successful in this industry. STX and our major equipment providers
have excellent track records and technical expertise. We believe that
the construction contract provides exceptional value, attractive
terms and the high end of available technology."
In conjunction with the investment, Vantage and Sigma are entering
into (1) a Project Management Agreement, whereby Vantage will provide
construction oversight of the vessel, (2) a Marketing Agreement, and
(3) a Management Agreement, whereby Vantage will manage the future
operation of drilling services.
Vantage, a Cayman Islands exempted
company, is an offshore drilling
contractor, with an owned fleet of four Baker Marine Pacific Class
375 ultra-premium jackup drilling rigs and two ultra-deepwater
drillships, the Platinum Explorer and the Titanium Explorer, as well
as an additional ultra-deepwater drillship, the Tungsten Explorer,
now under construction. Vantage's primary business is to contract
drilling units, related equipment and work crews primarily on a
dayrate basis to drill oil and natural gas wells. Vantage also
provides construction supervision services for, and will operate and
manage, drilling units owned by others. Through its fleet of seven
owned drilling units, Vantage is a provider of offshore contract
drilling services globally to major, national and large independent
oil and natural gas companies.
Certain statements contained in this news release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements represent Vantage's expectations or beliefs concerning
future events, and it is possible that the results described in this
press release will not be achieved. These forward-looking statements
are subject to risks, uncertainties and other factors, many of which
are outside of Vantage's control, that could cause actual results to
differ materially from the results discussed in the forward-looking
Any forward-looking statement speaks only as of the date on which
such statement is made, and, except as required by law, Vantage does
not undertake any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise. New factors emerge from time to time and it is not
possible for management to predict all such factors.
For further information, contact:
Paul A. Bragg
Chairman and Chief Executive Officer
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