Date: 16 January 2009
Ability Drilling enters into joint venture based in Panama
Ability Drilling has entered into a joint venture with MIPPSA de CV
("MIPPSA"), a company registrered in Mexico, and Energy Services
Corporation Ltd. ("ESC"), a Panama registered company. The purpose of
the joint venture is to own, lease out and perform maintenance on the
150 T rigs. Each of the three parties will own 1/3 of the joint
venture, which will be registered in Panama. As part of the
agreement, the joint venture has committed to buy three 150 T rigs
from Ability Drilling and has also secured an option for another
three 150 T rigs from Ability Drilling. The first two rigs will be
employed in Mexico, on three year contracts with client Pemex.
The 150 T rigs will be applied as drilling rigs. The three rigs to be
purchased from Ability Drilling are the Ultra Light Drilling Rig,
Workover rig 1 (which has been constructed, but will be converted
into a drilling rig) and Workover rig 2 (which is under construction
and will be converted into a drilling rig later).
The joint venture has submitted an application for long term
financing of the planned purchases through export guarantees from EDC
(Canada). While this application is being processed, Ability Drilling
will lease the Ultra Light Drilling Rig to MIPPSA at market rates.
The joint venture will work actively to win further contracts and
expand the business. There is a significant demand for 150 T drilling
rigs in both Mexico and in the US.
Hans Petter Eikeland, CEO in Ability Drilling, commented: "This joint
venture agreement allows us to lift the first three 150 T rigs out of
our balance sheet. This will reduce our funding requirements and
financial expenses. At the same time the rigs are secured employment
through the joint venture and we will get the benefit from immediate
cash flow".
For further information, please contact:
CEO Hans Petter Eikeland, phone +47 56 32 43 43, or +47 93 20 81 77
About Ability Drilling ASA: Ability Drilling aims to become the
preferred operator and provider of Rack & Pinion (R&P) rigs in its
defined core markets, by combining fourth generation drilling
technology with outstanding drilling experience from offshore North
Sea exploration and production activities.
The Company currently targets onshore oil operations in the MENA
(Middle East North Africa) market, the geothermal market in Europe,
as well as the market for drilling of LNG reservoirs. Both the land
rig market in MENA and the geothermal segment in Europe are markets
with strong growth and significant potential, while the market for
drilling of LNG reservoirs is an emerging growth segment. Ability
Drilling targets extension of the geographical footprint within all
current focus areas.
Ability Drilling has so far ordered 11 rigs, of which 9 land rigs,
one 150 T workover rig and one 150 T Ultra Light Drilling Rig. In
addition, the company has options with construction partner TTS Sense
for 33 additional land rigs and 40 additional workover rigs.
Ability Drilling is listed on Oslo Axess, with ticker ADRL.
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