The board and shareholders of Energy Drilling (“EDrill”) are delighted to welcome Pioneer Logistics Holdings (“Pioneer”) as a key shareholder of our company and announce the purchase of three tender rigs from Seadrill Limited (“Seadrill”).
Pioneer is a comprehensive and dynamic maritime company with a global operation and an experienced team. Based out of Singapore, Pioneer’s core operations involve its diverse fleet of 30 shipping vessels, including bulk carriers and oil tankers.
The signing of the Shares Subscription Agreement (“SSA”) was held on Friday, 9th June 2023 at 4pm local time in the offices of EDrill to mark the important occasion.
Representing Pioneer was Mr. Andrew Xue (Chairman) and Mr. Chris Tan (CFO) in the presence of the legal counsel of EDrill. EDrill was further represented by Mr. Marcus Chew (CEO) and other staff members. The signing was also witnessed by our Board of Directors in Norway and other management team members via video conference.
The agreed equity injection from Pioneer via the SSA allows EDrill, together with increased support from EDrill’s banking group and cash from the balance sheet, to raise the funds required to purchase three tender rigs, namely the T15, T16 and West Vencedor (the “Purchase Rigs”), from Seadrill. The closing of the Sale and Purchase Agreement (“SPA”) signed with Seadrill is expected in 3Q 2023.
As the existing manager of the Purchase Rigs, EDrill is highly confident in its ability to successfully operate and deploy the Purchase Rigs and create significant synergies and add valuable scale to its current fleet and operations.
Commenting on the transaction, Mr. Andrew Xue stated, “This investment demonstrates the trust that we have in the brand of Energy Drilling and its proven management team to deliver on the goals we have set. We are delighted to be part of the success story of Energy Drilling going forward”.
Speaking via video conference, Mr. Alf Thorkildsen (the Chairman of EDrill) added, “We are extremely pleased to welcome Pioneer as a new key shareholder of Energy Drilling. This partnership represents a significant milestone for us and will undoubtedly contribute to our continued growth and success. Their commitment to our mission and vision aligns closely with our own, making this a truly unique and synergistic partnership.”
Addressing the staff who were gathered at the signing ceremony, Mr. Marcus Chew (CEO) commented, “This capital injection by Pioneer allows us to double the size of fleet upon completion and will further strengthen our position in the market and open new possibilities for innovation and expansion. I believe this collaboration will create exciting opportunities to explore and grow for everyone in our organisation. As we move forward, we will remain dedicated to fostering a culture of teamwork, creativity and operational excellence. Our enlarged fleet will offer greater synergies of scale and allow us to provide unapparelled value to our customers”.
DNB Markets, part of DNB Bank ASA and Pareto Securities AS are acting as financial advisors in connection with the transaction (the “Financial Advisors”). CNPLaw LLP, Ro Sommernes advokatfirma DA and Advokatfirmaet BAHR AS are acting as legal advisors to EDrill, Advokatfirmaet Wiersholm AS as acting as legal advisor to the Financial Advisors.
Mr. Viggo Pedersen
Chief Financial Officer