S.D. Standard Drilling Plc ("SDSD") - New term contracts entered into and utilization primo 2019

  • Mar 21, 2019
  • Standard Drilling

Limassol, 21 March 2019

With reference to the stock exchange release dated 22 January 2019.

SDSD have secured new term contracts for Standard Princess, Standard Supplier

and Standard Provider, all large platform supply vessels ("PSV's"), 100% owned

by SDSD. The term contracts secure solid utilization going forward, with well

known and reputable counterparties, all at increased day-rates in line with our

2019 forecast. The total firm period of the contracts corresponds to ~460-470

days. In addition, these term contracts have a combined option period of

~265days.

The utilization for the five large PSVs was 100% in February and 93 % year to

date 2019 including January and February.

The term contracts, recently entered into by SDSD, is as follows:

Standard Princess (2008): Firm 185 day contract with a well known and reputable

counterparty in direct continuation of current contract when the vessel

completes the existing contract 1 April 2019. Total option period ~14 weeks with

a mix of monthly, weekly and daily options.

Standard Supplier (2007): Firm 185 day contract with a well known and reputable

counterparty with recommencement of previous contract starting end of March or

beginning of April. Total option period ~14 weeks with a mix of monthly, weekly

and daily options.

Standard Provider (2010): Firm 1 well contract (90-100 days) with Ithaca with

commencement between 4 April and 4 May. 1 well option, estimated at 70 days at

increased rate.

Further:

Standard Viking (2008): currently working on a 1 year firm contract with

Peterson to mid July 2019, including a 1 year option at increased rate.

Standard Supporter (2009): currently working on a 1 well (~100 days) firm

contract with Repsol from 21 January 2019.

The commercial terms of the contracts remain private and confidential but will

in total give a positive EBITDA after management costs.

"The abovementioned contracts and the rates to be paid confirm our optimism for

the spring and summer season in the North Sea", says Martin Nes, Chairman of the

Board of S.D Standard Drilling Plc.

SDSD has ownership in 17 platform supply vessels in total (in addition to FS

Arendal that is on a 1 year BB contract that expire end of March 2019). Out of

these, 5 large size PSVs are wholly owned and working in North Europe. 8

mid-size vessels are partly owned through ~25% ownership in Northern Supply AS

and out of these 8 vessels ;

FS Arendal is on term contract with Repsol ;

FS Kristiansand to commence a term contract with GAC Norway ;

FS Aberdour to commence a term contract with Spirit Energy ;

FS Carrick is completing a term contract with Fraser Well management.

FS Abergeldie, FS Braemar, and FS Balmoral continue to enjoy a rising 'spot

market'.

FS Crathes is 'in-house' for maintenance and FS Bergen remains in warm lay-up,

and actively being marketed.

The utilization for the medium size PSVs (including FS Arendal) in February 2019

was 82% and 77 % year to date 2019 including January and February.

New World Supply Ltd ("NWS"), where SDSD has an ownership of 34.4%, has a fleet

of 4 modern mid-size PSVs, after sale of two vessels in October 2018, all built

in 2013. All of the NWS vessels are in lay up. SDSD consider its holding in NWS

as a financial investment.