Hamilton, Bermuda, March 22, 2018
The Paragon acquisition gives Borr Drilling Limited (“Borr”) a solid operational platform that matches well with the first class assets Borr have acquired over the last 15 months. The plan for the amalgamation of the two companies will lead to significant cost reduction and give Borr a strong operational platform in the market for high spec units in the North Sea. With the 5-year track record we gain with this transaction, we are well positioned to win work with key jack-up clients, like Saudi Aramco, ADNOC and Pemex. The lay-up cost linked to the old part of the Paragon fleet will be dramatically reduced and several of these units are currently negotiated for sale to non-drilling purposes. The Borr organization see no economic incentive to reactivate the legacy assets in Paragon and they are thereby defined as non-core.
In connection with the Paragon transaction, the Board and CEO Simon Johnson have agreed that his contract as CEO will be terminated. Mr. Johnson, who has been in the company since August 2017, will assist in the integration of Paragon and will subsequently leave the company. The Board wants to thank Mr. Johnson for his contribution in the build up period of Borr. The Board has decided to promote Mr. Svend Anton Maier as interim CEO with immediate effect. Mr. Maier has been the Chief Operating Officer in Borr since its inception in December 2016 and has successfully been responsible for building the asset base in the company and commencing operations for several of the rigs.
“The Board is excited about the significant improvement in tender activity in the jack-up drilling market over the recent months. The Paragon transaction gives us an operational platform to continue to develop Borr as the leading jack-up drilling operator. Borr has since its inception grown the owned fleet of high spec. jack-ups from 2 to 24. The Board is proud of the efforts and professionalism the organization has shown in order to accommodate such growth. We have used the last 18 months of weakness in the drilling market to build a unique fleet of new assets acquired at the right price. These efforts will give Borr the position as the leading jack-up operator into the next cycle. We have explored a lot of different opportunities, but see today few additional assets to be acquired. Borr is now close to the finish line building the leading jack-up drilling company both in terms of operations and assets. We are encouraged that this coincides with a large pick-up in tendering activity” says chairman Tor Olav Troim.
The Board of Directors
Borr Drilling Limited
Forward looking statements
This announcement may be deemed to include forward looking statements. Forward looking statements are, typically, statements that do not reflect historical facts and may be identified by words such as “anticipate”, “believe”, “continue”, “estimate”, “expect”, “intends”, “may”, “should”, “will” and similar expressions. The forward looking statements in this announcement are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Borr Drilling Limited believes that these assumptions are reasonable, they are, by their nature, uncertain and subject to significant known and unknown risks, contingencies and other factors which are difficult or impossible to predict and which are beyond our control. Such risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward looking statements included herein. The information, opinions and forward looking statements contained in this announcement speak only as of the date hereof and are subject to change without notice.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.