S.D. Standard Drilling plc

10/02/2019 | Press release | Distributed by Public on 10/02/2019 07:42

S.D. Standard Drilling Plc. (the 'Company') has entered into a Memorandum of Agreement ('MOA') to sell Standard Provider, one (1) large Norwegian built Platform Supply Vessels[...]

Through its wholly owned subsidiary Standard Provider AS, S.D. Standard Drilling Plc, has agreed to sell ("Transaction") one (1) UT 776 CD PSV vessel Standard Provider ( "Vessel") for USD 13.5 million. The Vessel is a large PSV, built at STX Brevik, Norway, in 2010, with 1,000m2 deck space. Standard Provider AS has received a 10% deposit of the purchase price. The Transaction is expected to be completed within October 2019. Following the sale, the Company will control, directly and indirectly, a fleet of 14 PSVs ; five (5) large PSVs 100% owned and nine (9) medium-sized PSVs with approximately 26% ownership interest, including one vessel on a bare boat contract. The sale will further strengthen the Company's cash balance. "We are pleased with the sale of the Standard Provider. The transaction will increase our cash balance significantly. As repeatedly communicated, our company will take advantage of the opportunities that may appear within the market we operate. This also includes sale of vessels. Standard Provider was acquired for USD 11.1 million. The profit, excluding fair value adjustments, will be approximately USD 3 million including the result of the operation of the Vessel. By selling Standard Provider we have also reduced forward capital expenditures commitment due to the fact that the Vessel have 10 year survey early next year. " says Martin Nes, Chairman of the Company. Following completion of the Transaction, the Company will have a pro forma cash holding of approximately USD 41 million. This includes pro-rata cash held by S.D Standard Drilling Plc, subsidiaries and investments. No agreements have been entered into that are for the benefit of members of the management or board of directors of neither the Company nor Standard Provider AS in connection with the sale of the Vessel. This stock exchange notice is published in accordance with the requirements for detailed stock exchange announcements pursuant to section 3.4 of the Continuing Obligations for companies listed on Oslo Axess. For further information please contact: General Manager, Evangelia Panagide at +357 99 77 11 16, or ; Chairman of the Board, Martin Nes at +47 92 01 48 14