WEST MIRA AWARDED DRILLING CONTRACT BY WINTERSHALL
NODL enters into Heads of Agreement with Seadrill and applies for transfer of listing from Oslo Axess to Oslo Børs
Northern Drilling Ltd (Oslo Axess: NODL) is pleased to announce its harsh environment rig West Mira has secured a firm contract for 6 wells with Wintershall Norge AS for the Nova field with contract commencement expected in March 2020. Wintershall is Germany’s largest internationally active producer of crude oil and natural gas with several development projects in the North Sea. The contract value is estimated to approximately USD 106 million.
The Wintershall contract has been awarded to Seadrill Norway Operations Ltd. a subsidiary of Seadrill Ltd who will operate West Mira on Northern Drilling’s behalf.
The Wintershall contract also includes options for early commencement starting from early Q3 2019 as well as follow-on options after the firm contract period. Should all options be exercised, West Mira is expected to be contracted to Wintershall until Q1 2022. The day rates for parts of the optional period will be based on a market indexed rate which enables NODL to benefit from the expected tightening of the harsh environment market with a drilling rig well positioned on the NCS.
Northern Drilling is also pleased to announce that it has entered into a Heads of Agreement with Seadrill Global Services Ltd (the “Manager”), a wholly owned subsidiary of Seadrill Ltd for an operating agreement (“Operating Agreement”) for West Mira under the Wintershall Contract. The Operating Agreement is to cover customary scope for commercial and technical services securing Northern Drilling safe and reliable operations from one of the world’s most experienced drilling contractors.
Finally, the Company has applied for a transfer of listing from Oslo Axess to Oslo Børs and expects transfer to be consummated by 3 July should the application be approved. A listing at Oslo Børs is expected to further increase the liquidity in the trading of the Company’s shares.
Contacts: Gunnar W. Eliassen, CEO +44 (0) 74 6914 0012
Additional information about the Company can be found at: http://www.northerndrillingltd.com
Forward Looking Statements
Matters discussed in this release may contain certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates, sometimes identified by the words “believes”, “expects”, “intends”, “plans”, “estimates” and similar expressions. The forward-looking statements contained in this release, including assumptions, opinions and views of the Company or cited from third-party sources, are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. The Company does not provide any assurance that that the assumptions underlying such forward-looking statements are free from errors, nor does the Company accept any responsibility for the future accuracy of the opinions expressed in the presentation or the actual occurrence of the forecasted developments. No obligations are assumed to update any forward-looking statements or to conform to these forward-looking statements to actual results.