Rig floaters investment case â large upside
Rig floaters investment case â large upside
Rig floaters investment case â large upside
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Pareto – High Yield Conference<br />
London – February 8, 2007<br />
Ole Geir Hagen<br />
CFO<br />
<strong>Rig</strong> <strong>floaters</strong> <strong>investment</strong> <strong>case</strong> – <strong>large</strong> <strong>upside</strong><br />
Owns 3 semi submersibles bare decks with flexible working modes<br />
SS Viking Producer under reactivation – short time to market<br />
– Enhanced 2 Gen semi for water depth up to 1,500 ft<br />
– Scheduled for delivery end 2007 / early 2008<br />
– Reactivation program making good progress<br />
SS Viking Century & SS Viking Prospector – cold stacked<br />
– Drilling ban put on by Diamond Offshore to reduce market capacity – no technical limitations<br />
– Dialogue with Diamond initiated to delete drilling ban – outcome hard to assess<br />
– Alternative use - Floating production, Accommodation or Tender drilling<br />
– Received inquiries from several industrial players<br />
Very strong market fundamentals and outlook<br />
– Long upturn cycle expected in the oil service industry<br />
– Good visibility for the next 3-4 years<br />
ODS-Petrodata – ”not enough drilling rigs available until 2012 – 14”<br />
– Especially demand for <strong>floaters</strong> looks very strong<br />
2<br />
1
The world running out of oil production capacity ...<br />
Confidential<br />
Global demand for oil & gas continues to<br />
grow<br />
– Declining production and reserves<br />
– Current producing fields – 30-40% of demand in 2015<br />
– OPEC production near effective capacity<br />
– Reserve Replacement Ratio = 75% - lowest ever<br />
The world needs significant <strong>investment</strong>s in<br />
the whole energy complex<br />
– Develop proven reserves<br />
– Find new reserves<br />
– Oil companies focus changing from cash flow to<br />
exploration<br />
There are reserves out there, the challenge<br />
is to bring them on stream<br />
– Development drilling expected to increase<br />
– 20% of drilling rigs currently used for exploration –<br />
expected to increase<br />
The answer is more exploration!<br />
mbbls/pd<br />
120 OPEC spare capacity<br />
Required new production<br />
100 Existing production<br />
80<br />
60<br />
40<br />
20<br />
0<br />
Reserve replacement problem<br />
Global demand<br />
growth<br />
Depletion on<br />
existing fields<br />
1980<br />
1982<br />
1984<br />
1986<br />
1988<br />
1990<br />
1992<br />
1994<br />
1996<br />
1998<br />
2000<br />
2002<br />
2004<br />
2006<br />
2008<br />
2010<br />
2012<br />
2014<br />
2016<br />
2018<br />
2020<br />
Source: Norwegian Oil Industry Association (OLF)<br />
3<br />
World <strong>floaters</strong> – KNOWN supply and demand<br />
250<br />
Caspian region not included<br />
200<br />
No. units<br />
150<br />
100<br />
50<br />
0<br />
Sep-06<br />
Dec-06<br />
Mar-07<br />
Jun-07<br />
Sep-07<br />
Dec-07<br />
Mar-08<br />
Jun-08<br />
Sep-08<br />
Dec-08<br />
Mar-09<br />
Jun-09<br />
Sep-09<br />
Dec-09<br />
Mar-10<br />
Jun-10<br />
Sep-10<br />
Dec-10<br />
Firm Options Requirements Total Supply<br />
Floater market sold out until early 2009<br />
Total demand is not a forecast, but a picture of known demand from the oil<br />
companies<br />
Source: Fearnley Fonds, ODS – Petrodata Feb 2007<br />
4<br />
2
Global supply - <strong>floaters</strong><br />
199 working <strong>floaters</strong> today<br />
200<br />
5<br />
In addition - 5 semis are cold<br />
stacked<br />
48 new builds under construction<br />
of which 3 units are for the midwater<br />
segment<br />
180<br />
160<br />
140<br />
120<br />
36<br />
The remaining 45 new builds are<br />
for ultra deep water (5,000ft +)<br />
– Not expected to compete with Viking<br />
Producer short term due to current<br />
shortage of ultra deep water rigs<br />
100<br />
80<br />
60<br />
40<br />
161<br />
12<br />
Viking Producer will enter the<br />
market in about a year<br />
– new build delivery today – 2010 / 2011<br />
20<br />
0<br />
Semis<br />
38<br />
Drillships<br />
Working Under construction Cold stacked<br />
Source – ODS Petrodata January 29, 2007<br />
5<br />
Global supply – <strong>floaters</strong> by water depth<br />
Semis – 202 units<br />
Drill ships – 50 units<br />
90<br />
80<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
88<br />
3 4<br />
31<br />
0 1<br />
42<br />
33<br />
0 - 3000ft 3001 - 5000ft 5001ft +<br />
0<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
25<br />
12<br />
7 6<br />
0 0 0 0 0<br />
0 - 3000ft 3001 - 5000ft 5001ft +<br />
Working Under construction Cold stacked<br />
Working Under construction Cold Stacked<br />
3 <strong>floaters</strong> under construction for water depth less than 3000 ft<br />
45 <strong>floaters</strong> under construction for water depth 5000 ft +, 3 for delivery in 2007, 15<br />
in 2008, 23 in 2009 and 4 in 2010<br />
Source – ODS Petrodata January 29, 2007<br />
6<br />
3
Global supply - semis < 3,000ft water depth<br />
Only 24 units become available before June 30, 2008<br />
NS; 36<br />
NON; 8<br />
GOM; 12<br />
BRAZIL;<br />
8<br />
WA; 9<br />
MED; 4<br />
94 semis < 3,000ft water depth of<br />
which:<br />
47 semis fixed beyond June 30,<br />
2008<br />
7 semis with options beyond June<br />
30, 2008<br />
8 semis water depth less than<br />
1,500 ft<br />
GOM – Gulf of Mexico<br />
MED – Mediterranean<br />
NS – North Sea<br />
APAC;<br />
17<br />
WA – West Africa<br />
APAC – Asia Pacific & Middle East<br />
NON – Non-competing<br />
8 semis non – competing (water depth<br />
< 700ft, and Caspian & Black Sea)<br />
Only 24 semis available before<br />
June 30, 2008<br />
Source – ODS Petrodata January 29, 2007<br />
7<br />
Target market – semi < 3,000 ft water depth<br />
Only 14 units become available before June 30, 2008<br />
14<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
0<br />
12<br />
9<br />
1<br />
2<br />
8<br />
8<br />
4<br />
4<br />
1<br />
1 1<br />
1<br />
3 2<br />
GOM BRAZIL WA MED<br />
Fixed Options Less
Target market – expected demand<br />
US Gulf of Mexico<br />
– <strong>Rig</strong>s continue to exit area due to soft gas price<br />
– Expected to generate more opportunities for the semis in the area<br />
– Mostly short term contracts available today<br />
Mexico<br />
– Production is declining<br />
– Long term requirement for min. 4 semis (1,000 – 1,500 ft WD)<br />
Central America<br />
– Long term requirement for 2 semis in Venezuela<br />
Brazil<br />
– Long term requirement for 5 – 10 semis over next 5 years<br />
West Africa<br />
– Long term requirement for 3 – 5 semis<br />
Mediterranean<br />
– Long term requirement for 4 – 6 semis<br />
9<br />
Substantial <strong>upside</strong> in rig value<br />
Confidential<br />
SS Transocean Wildcat (2G semi, 1300 ft, built 1977) recently sold to Essar, India for<br />
implicit price of $ 300 m<br />
– Purchase price as-is / where-is $ 221m<br />
– Been cold stacked since 2001<br />
– Require <strong>investment</strong> of $ 60 – 80m to get the rig back in operational condition<br />
– 2 year contract, starting 06/2007 to Gujarat State Petroleum Corp (GPSC) at $ 342,000 / day in India<br />
SS Deepsea Trym (2G semi, 1300 ft, built 1976) recently sold to Songa Offshore,<br />
Norway for implicit price of $ 350 – 400m incl. negative value of charter contract<br />
– Purchase price $ 238,5m<br />
– Bareboat charter $ 50,000 per day until March 2009, if all options are exercised<br />
– $ 180 – 230,000 per day below current market<br />
SS Viking Producer implicit value $ 170m ready-to-drill end 2007<br />
– Based on current share price, NOK 11.25<br />
– Two other semi bare decks valued at purchase price, $ 28.5m en bloc<br />
– Base on refurbishment cost $ 115m<br />
We believe the fair market value of SS Viking Producer is substantially higher today<br />
10<br />
5
Further <strong>upside</strong> in day rates<br />
Confidential<br />
Current day rate around USD 300,000 for 2G mid-water <strong>floaters</strong><br />
– <strong>Rig</strong> EBITDA $ 77m p.a. - $ 300,000 / day at 94% utilisation<br />
GOM – contract fixtures 2GSS<br />
– Ocean Voyager – 120 d to Newfield at $ 300,000 starting March 2007<br />
– Ocean New Era – 2,5 yr to Pemex at $ 265,000 starting July 2007<br />
– Transocean Amirante – 3 yr contract to Repsol at $ 350,000 starting May 2007<br />
– Frontier Driller – 3 yr contract to Shell at $ 340,000 starting July 2007<br />
Brazil – contract fixtures 2GSS<br />
– Olinda Star – 5 yr to Petrobras at $ 270,000 starting Dec. 2008<br />
– Atlantic Venture – 5 yr to Petrobras at $ 230,000 starting Oct. 2008<br />
West Africa – contract fixtures 2GSS<br />
– Pride South Seas – 1.2 yr to undisclosed client in South Africa at $ 285,000 starting Feb. 2008<br />
– Ocean Lexington – 3 yr to BP, Egypt at $ 265,000 starting Oct. 2006<br />
DnBNOR Markets foresee near term <strong>upside</strong> in day rates in mid-water <strong>floaters</strong><br />
– according to rig sector analysis (Sep. 2006)<br />
Transocean foresee day rates of USD 350,000 – 400,000+ for mid-water <strong>floaters</strong> in<br />
Europe and African region<br />
– according to statement made at Lehman Brothers Energy Conference Sep 2006<br />
11<br />
Key milestones achieved<br />
Confidential<br />
Mr W. Dennis Heagney – CEO & President since Jan. 2, 2007<br />
– COO Transocean Offshore Inc and President Sonat Offshore Drilling Inc<br />
– Most recently Senior VP – Business development of Songa Management, Houston, Texas<br />
Construction management team in place with substantial experience<br />
– Odin <strong>Rig</strong> Services Inc, Houston, Texas, owned and headed by Mr Ole Peter Blom<br />
– the construction team on site counts 17 highly qualified and experienced engineers and planners<br />
– Allum Marine AS, Norway acting as technical advisor<br />
Yard capacity secured for reactivation of SS Viking Producer<br />
– Gulf Copper, Galveston, Texas – 50 years experience including major conversions of semis and<br />
reactivations of jack-up rigs<br />
– Major customers include GlobalSantaFe, Nabors, TODCO and US Navy<br />
Detailed engineering capacity secured<br />
– Noble Denton / ODL Services Inc, Houston<br />
– Zentech Inc, Houston<br />
All ”long-lead” equipment secured for SS Viking Producer<br />
12<br />
6
Financing of reactivation in place for SS Viking Producer<br />
Confidential<br />
200<br />
IINVESTMENTS<br />
$ m<br />
180<br />
160<br />
Interest costs,<br />
G&A USDm 16<br />
Add.<br />
Financing<br />
USDm 20<br />
Construction<br />
Cost =<br />
USDm 159<br />
Acquisition three hulls 44<br />
Reactivation SS Viking Producer 115<br />
Interest cost, G&A to Dec. 2007 16<br />
140<br />
Financing need 175<br />
120<br />
Equity<br />
issued<br />
USDm 79<br />
FINANCING SOURCES<br />
100<br />
80<br />
Reactivation<br />
cost Viking<br />
Producer<br />
USDm 115<br />
Equity already issued, net 79<br />
Bond financing in place, net 77<br />
Further financing required 20<br />
60<br />
Total financing 176<br />
40<br />
Bond 1.pri<br />
USDm 77<br />
20<br />
Acquisition<br />
cost USDm 44<br />
- All numbers are Viking estimates<br />
- Assume equity issue or new loan of USDm 20 in order to finance completion of<br />
reactivation of SS Viking Producer, to have a small capital buffer and to service<br />
interest payments in the construction period.<br />
0<br />
Asset Value<br />
Security Structure<br />
13<br />
Lead investor – Mr Christen Sveaas<br />
Confidential<br />
<br />
<br />
<br />
Lead investor - Mr Christen Sveaas<br />
owns 17.2% (23.8% incl. warrants)<br />
Orion Securities retained as market<br />
maker in the stock<br />
The stock is covered by three<br />
Norwegian <strong>investment</strong> bankers:<br />
– Pareto Securities AS<br />
– Orion Securities ASA<br />
– Corporate Advice & Research AS<br />
Largest shareholders Jan 8, 2007<br />
SHARES % HOLDER<br />
9 705 700 17,1 % SVEAAS CHRISTEN incl. controlled companies (1)<br />
9 743 250 17,2 % UBS AG, LONDON BRANC S/A IPB SEGREGATED C<br />
7 500 000 13,3 % TEIGEN FRODE<br />
6 200 000 11,0 % DEUTSCHE BANK AG LON S/A PRIME BROKERAGE<br />
6 150 000 10,9 % CREDIT SUISSE SECURI (EUROPE) PRIME BROKE<br />
3 172 308 5,6 % GOLDMAN SACHS INTERN EQUITY NONTREATY CUS<br />
2 500 000 4,4 % TEIGEN OLE<br />
1 821 489 3,2 % BANK OF NEW YORK, BR BNY GCM CLIENT ACCOU<br />
1 484 703 2,6 % STATE STREET BANK AN A/C CLIENT OMNIBUS F<br />
1 230 000 2,2 % DEUTSCHE BANK AG LON PRIME BROKERAGE FULL<br />
39 801 750 70,3 % SUB-TOTAL<br />
16 798 250 29,7 % OTHERS<br />
56 600 000 100,0 % TOTAL<br />
(1) Kistefos Investment AS, AS Holding, Portfolio Management AS, Polar Quest AS<br />
and Kistefos Skog AS<br />
6.2 mill warrants outstanding at the following terms:<br />
<br />
<br />
subscription price NOK 1.00 per share<br />
can be executed any time on or before Nov. 9, 2007 provided the<br />
market share price is min. NOK 15.00 over 10 consecutive<br />
working days with a an accumulated min. traded volume of 1.0<br />
mill shares<br />
14<br />
7
SS Viking Producer – Reactivation Program<br />
15<br />
SS Viking Producer (ex. Pan Producer, Neptune 7 & Pentagone 81)<br />
The rig will be outfitted as 2G drilling rig<br />
– Water depth 1,500 ft, drilling depth 22,000 ft, BOP 10,000 PSI, 3 mud<br />
pumps<br />
– Standard rig, less complex than modern state-of-the-art new builds<br />
Hull in good condition<br />
– The rig has not worked since 1989<br />
– Bare deck - no removal cost of old equipment<br />
– USDm 20 was invested in the lower hull and main deck in 2001/02 by<br />
Crest Petroleum<br />
– Dry docking of the rig not required, confirmed by ABS (class)<br />
– One horizontal brace to be mounted between column A & E to reach<br />
class<br />
The rig was successfully re-floated in December 2006<br />
– Structurally inspected and found to be sound with no leaks<br />
The drilling and marine equipment will be totally “new”<br />
– New and reconditioned equipment will be used<br />
– The living quarter onboard, which is 40-50% completed (new in<br />
2001/02), is in good condition<br />
All “long-lead” equipment is secured<br />
– Availability of resources and equipment in Houston, Texas area is good<br />
Estimated completion end 2007 / early 2008<br />
– Detailed planning and engineering ongoing<br />
– Construction work has started<br />
– Estimated re-construction cost $ 115m ex. financing cost<br />
Increased capabilities presently being evaluated<br />
– If decided re-construction cost will increase and delivery will be<br />
postponed<br />
SS Viking Producer<br />
(after hull refurbishment in 2002)<br />
16<br />
8
Detailed engineering – making good progress<br />
General Arrangements drawings are completed<br />
Derrick substructure, moon pool arrangements and drilling systems<br />
engineering is completed<br />
Main system electrical engineering is completed and drawings are<br />
issued for installation<br />
Global strength and stability analysis, and weight engineering and<br />
control is completed<br />
Dead weight survey of the rig has been successfully completed and a<br />
baseline for the total weight has been set<br />
Evaluating installation of additional buoyancy in order to increase<br />
Variable Deck Load<br />
– If decided, the re-construction cost will increase and the delivery will be postponed<br />
17<br />
Construction work ramping up<br />
The following construction work is currently ongoing:<br />
Removal of existing excess steel<br />
Blasting and painting of internal compartments<br />
Selection of contractor for the electrical installation is made (IEC<br />
Systems, Houston, Texas) and the installation has started<br />
Selection of contractor for the completion of living quarter is made<br />
(GVMS, Houston, Texas) and the work has started<br />
Painting of machinery room<br />
Painting of column A<br />
Connection of construction crane pedestal<br />
18<br />
9
All “long-lead” equipment ordered<br />
New equipment:<br />
– Mooring system (Bodewes Winches)<br />
complies with new regulations in US Gulf of<br />
Mexico<br />
– Electrical equipment package (IEC<br />
Systems)<br />
– Drilling string (Grant Prideco)<br />
– Riser (Rucker Schaffer)<br />
– Deck cranes (Seatrax)<br />
– Drill floor handling equipment incl iron<br />
rough neck (Wellquip)<br />
– Derrick handling equipment (Wellquip)<br />
– BOP handling equipment (Wellquip)<br />
Used equipment:<br />
– 4 main diesel generators (EMD)<br />
– Drilling Derrick incl provision for pipe<br />
handling system and top drive (LoadMaster)<br />
– Riser Tensioner System (NOV)<br />
– BOP – stack (Rucker Schaffer)<br />
– Heave compensator (NOV)<br />
– Draw-works (NOV)<br />
– Rotary table (NOV)<br />
– Traveling Block (NOV)<br />
– Mud pumps (Wirth)<br />
– Motors for mud pumps and draw-works<br />
– Top drive (NOV)<br />
NOV – National Oilwell Varco<br />
19<br />
All used equipment will be reconditioned<br />
Draw-works at NOV<br />
Rotary table at NOV<br />
Mud pumps at Wirth<br />
Drill string compensator Diesel generator no 2 at Stewart & Stevenson Riser tensioner at Schaffer<br />
20<br />
10
Gulf Copper Shipyard, Galveston, Texas<br />
Confidential<br />
The reactivation of SS Viking Producer will<br />
take place at Gulf Copper shipyard,<br />
Galveston.<br />
Steel-work, painting, sand blasting and<br />
provide crane capacity and other support<br />
services.<br />
– Odin <strong>Rig</strong> Services – will engage specialized<br />
contractors for other work<br />
Gulf Copper 50 years experience<br />
– Track record includes conversion of tankers to FPSOs<br />
and major conversions on semi submersibles as well<br />
as reactivated five jack-up rigs<br />
– Since May 2005, about 10 rigs and vessels have been<br />
dry docked<br />
– 800 employees<br />
The yard is located in an area with long<br />
history within rig refurbishment and<br />
construction, close to suppliers<br />
Offshore track record<br />
Major customers include<br />
– GlobalSantaFe<br />
– Nabors<br />
– TODCO<br />
– US Navy<br />
21<br />
Sister rigs of SS Viking Producer<br />
Confidential<br />
There are eight Pentagone rigs in the world<br />
– Six rigs are working<br />
SS Viking Producer is one of the two rigs not<br />
currently in operation<br />
Estimated 15 – 20 years of useful lifetime after<br />
reactivation<br />
SS Zagreb 1<br />
(similar design as SS Viking Producer)<br />
In operation<br />
Year Water Drilling<br />
<strong>Rig</strong> name Owner Built depth Depth Employment<br />
ft ft<br />
Pride Mexico Pride International, US 1973 1 400 22 000 Pemex, Mexico<br />
Noble Lorris Bouzigard Noble Corporation, US 1975 4 000 25 000 Mariner, GOM<br />
Noble Therald Martin Noble Corporation, US 1977 4 000 25 000 Petrobras, Brazil<br />
Atlantic Star Queiroz Galvao Perfuracoes, Brasil 1976 2 000 25 000 Petrobras, Brazil<br />
Zagreb 1 Crosco Ltd, Kroatia 1977 1 500 20 000 Devon, West Africa<br />
Petrolia Petrolia Drilling, Norway 1976 1 200 25 000 Apache, North Sea, UK<br />
Asterie Ghana National Petroleum Company 1974 660 20 000 Cold- stacked<br />
Viking Producer Viking Drilling, Norway 1969 1 500 22 000 Reactivation<br />
Source: ODS-Petrodata / www.coltoncompany.com<br />
22<br />
11
Risk factors<br />
Oil price below $ 40 – may reduce drilling activity<br />
Financial markets<br />
Significant delays<br />
Significant cost overruns<br />
23<br />
Confidential<br />
Appendix<br />
SS Viking Producer – planned technical spec.<br />
SS Viking Century<br />
SS Viking Prospector<br />
Management<br />
24<br />
12
SS Viking Producer – planned technical specification<br />
Confidential<br />
<br />
<br />
General:<br />
<strong>Rig</strong> design: Forex Neptune Pentagone<br />
Built 1969 – CFEM, LeHavre, France<br />
Water depth: 1,500 ft<br />
Drilling depth: 22,000 ft<br />
Living quarters: 100 men<br />
VDL: 4,600 kips (2.100 MT)<br />
Main power: 4 EMD @ 2,200 hp<br />
Mooring system: 10 point single drums system with 83 mm wire MBL of<br />
620 mt (DB2K)<br />
Cranes: 2 SeaTrax series S90, each 70 tonnes capacity<br />
Drilling equipment:<br />
BOP: 18 ¾” 10,000 PSI stack Rucker Shaffer type SLX<br />
Riser: 1,650 ft (2 spares) Rucker Shaffer 21” OD<br />
Drill string – 22,000 ft, 5.5 inch, grade S-135<br />
Mud pumps: 3 triplex @ 1,600 hp<br />
Draw works: One 3,000 HP 1 5/8” drill line, Lebus drum<br />
Rotary table: One 49.5” w/independent drive @ 800 HP<br />
Top drive: One National P2S-650<br />
Automatic pipe handling equipment<br />
Noble Therald Martin<br />
(similar design as Viking Producer)<br />
25<br />
Confidential<br />
SS Viking Century (ex. Ocean Century & Diamond M Century)<br />
Purchase price USDm 14.25 as-is/where-is<br />
Korkut class<br />
Built 1973 – Alabama Dry Dock & Shipbuild.<br />
270’ x 173’ x 83’ hull<br />
Last worked July 1998, cold stacked since Oct<br />
2000<br />
Out of class<br />
Major refurbishment (USDm 15-20) in 1997/98<br />
by Diamond Offshore<br />
Requires substantial <strong>investment</strong> in hull and topside<br />
facilities<br />
Living quarter, main engines, mooring winches<br />
in fair condition and can be used<br />
Hull back to class – est. cost USDm 15 - 20<br />
Liberia flag<br />
Working modes: Tender Drilling, Floating<br />
Production, Accommodation / Service<br />
Drilling ban – put on by Diamond to reduce<br />
market capacity<br />
SS Viking Century in Sabine Pass, Texas May 2006<br />
26<br />
13
Confidential<br />
SS Viking Prospector (ex. Ocean Prospector)<br />
Purchase price USDm 14.25 as-is/where-is<br />
Ocean Victory class<br />
Built 1971 – Mitsubishi Heavy Ind., Japan<br />
338’ x 263’ x 126’ hull<br />
Stacked since 1998<br />
Out of class<br />
Last upgraded 1981<br />
Requires substantial <strong>investment</strong> in hull and top-side<br />
facilities<br />
Hull back to class – est. cost USDm 15 - 20<br />
Large deck space, particularly suited for floating<br />
production<br />
Marshall Island flag<br />
Working modes: Floating Production, Accommodation /<br />
Service<br />
Drilling ban – put on by Diamond to reduce market<br />
capacity<br />
SS Viking Prospector in Galveston, Texas May 2006<br />
27<br />
Management – proven track record<br />
Confidential<br />
W. Dennis Heagney<br />
Ole Geir Hagen<br />
CEO & President<br />
More than 30 years of experience and proven<br />
track record in the offshore drilling industry.<br />
CFO<br />
Strong background in finance and<br />
restructuring.<br />
– SVP Business Development Songa<br />
Management, Houston (2005 – 2006)<br />
– COO Transocean Offshore Inc<br />
(1996 – 2002)<br />
– President Sonat Offshore Drilling Inc<br />
(1986 – 95)<br />
– Sonat Offshore Drilling Inc – various<br />
positions since 1969<br />
Heagney is a graduate of the Colorado School<br />
of Mines with a professional degree in<br />
Petroleum Engineering.<br />
– CFO Tandberg Data ASA (2003 – 06)<br />
– CFO Management for hire (2002 – 03 & 1998 – 00)<br />
– CEO Cappit ASA (2001 – 02)<br />
– CFO Viking Supply Ships AS / Viking <strong>Rig</strong>s AS<br />
(1990 – 97)<br />
– Vice President Oslobanken AS (1987 - 89)<br />
– Financial Controller/Contracts Engineer Stolt-Nielsen<br />
Seaway AS (1982 - 87).<br />
Hagen holds a Master of Business<br />
Administration degree from the Norwegian<br />
School of Management, Oslo, Norway, 1981.<br />
Source: Viking Drilling<br />
28<br />
14
Confidential<br />
Odin <strong>Rig</strong> Services Inc – the Construction Manager<br />
Ole Peter Blom<br />
Odin <strong>Rig</strong> Services Inc. (the Blom Group) with<br />
Ole Peter Blom in charge<br />
Ole Peter Blom has 30 years experience from<br />
leading management teams involved with<br />
offshore drilling operations, rig new builds and<br />
rig refurbishment projects<br />
Mr. Blom has a reputation for completing<br />
marine projects “correctly”, on time and on<br />
budget. Mr. Blom holds a Norwegian Chief<br />
Engineer license, Master of Science Mech.<br />
Engineering<br />
President/CEO, ADC TX, Client Sonangol<br />
– USDm 40 conversion of Dolphin III shallow water jack up<br />
drilling unit to Mobil Production Unit at Gulf Copper<br />
Director of Engineering and Winterisation of<br />
SS Eirik Raude, Halifax, Canada<br />
Vice President of Engineering, Marine Drilling<br />
Companies, Houston, Texas<br />
- Responsible for all engineering and construction projects for<br />
the company’s fleet of jack up and semi-submersible offshore<br />
drilling rigs, including the USDm 270 U.S. deep water project<br />
of Marine 700 and USD m 110 upgrade of Marine 500 to deep<br />
water application. Completed on time – on budget.<br />
Executive Vice President Operations &<br />
Engineering, Arethusa Offshore, Houston, Texas<br />
- Exmar, Belgium acquired Zapata Offshore together with<br />
Swedish partners in 1991 and went public with the company<br />
as Arethusa Offshore in 1994. Blom joined Exmar in 1981 and<br />
held several positions with Exmar and Zapata / Arethusa until<br />
the company was merged with Diamond Offshore in 1996.<br />
Dyvi Offshore<br />
- Responsible for 2 new build jack ups and 1 new build semi<br />
Fearnley & Eger<br />
- Responsible for site team in Finland for 2 new build semi’s<br />
29<br />
30<br />
15
Allum Marine – technical advisor<br />
Technical advisor and project verifier<br />
– Bjørn Bakken and Bjørn Håvard Brænden<br />
– Perform independent progress survey of the reactivation work<br />
on Viking Producer<br />
– Verification of the quality of the work<br />
Allum Marine AS - a Norwegian engineering<br />
company specializing in rig reactivation and rig new<br />
buildings<br />
Allum Marine AS provides high qualified engineering<br />
services within naval architecture, marine- and<br />
topside engineering and contractor services to shipand<br />
offshore industries, highlighting all type of<br />
floating units.<br />
Confidential<br />
Track record<br />
Bideford Dolphin Drill Semi<br />
Bingo 9000#1 Drill Semi<br />
Bingo 9000#2 Drill Semi<br />
Bingo 9000#3 Drill Semi<br />
Bingo 9000#4 Drill Semi<br />
Borgland Dolphin Drill Semi<br />
Borgny Dolphin Drill Semi<br />
Borgsten Dolphin Drill Semi<br />
Bow Drill II<br />
Drill Semi<br />
Bow Drill III<br />
Drill Semi<br />
Byford Dolphin Drill Semi<br />
Deep Sea Bergen Drill Semi<br />
Drill Star<br />
Drill Semi<br />
Drillmar<br />
Drill Semi<br />
Dundee Explorer Drill Semi<br />
Dyvi Alpha<br />
Drill Semi<br />
H3<br />
Bingo<br />
Bingo<br />
Bingo<br />
Bingo<br />
H3<br />
H3<br />
H3<br />
Pacesetter<br />
H4.2<br />
H3<br />
H3<br />
Pacesetter<br />
Pacesetter<br />
H3<br />
H3<br />
31<br />
16