Standard ETC acquires 25% stake in Dolphin Drilling
Standard ETC, an Oslo-listed company formerly known as Standard Drilling, has acquired 25% of offshore drilling operator Dolphin Drilling for $10 million via a capital raise.
Martin NesChairman of the Board of Standard ETC, said: “We are delighted to announce our investment in Dolphin Drilling, a company with deep industrial roots dating back to 1965 and one of the first drilling companies to operate in the North Sea. . Today, the company owns and operates three energy-efficient moored semi-submersible rigs and employs approximately 350 people. Today’s market presents opportunities for debt-free drilling contractors with ready-to-drill assets, and we look forward to to work with the Dolphin team to realize the potential of current fleet and future rig management operations”
Standard ETC on Friday acquired 25% of Dolphin Drilling through a stock offering for cash consideration of $10 million with warrants to invest an additional $5 million, bringing total ownership to 32, 5%. Dolphin Drilling has no interest bearing debt.
Formerly known as Fred Olsen Energy, Dolphin Drilling owns and operates a fleet of upgraded 5th and 6th generation Aker H3 units. The company has approximately 350 employees at operating bases in Aberdeen, Scotland, Stavanger, Norway, in addition to offshore personnel. In October 2021, Dolphin Drilling also obtained the marketing rights for the 7th generation KFELS Moss Maritime CS60 ECO MW semi-submersible drilling rigs.
Øystein Stray Spetalen and Martin Nes will join Dolphin Drilling’s board of directors, with Nes proposed as chairman.
At the end of March 2022, Standard ETC held cash and marketable securities of approximately USD 80 million.
In addition, Standard ETC has a fleet of seven Platform Supply Vessels (PSVs) including two wholly-owned large PSVs with a free deck area of 1050 m2. Standard Viking operates at a daily rate of GBP 11,000 until January 2023, while supplier Standard currently operates at a daily rate of EUR 15,000. The company owns 28% of five medium-sized PSVs. Currently, spot rates are between 15-20,000 GBP for PSVs.