July 11, 2017 - 8:00 AM EDT
Print Email Article Font Down Font Up
Castle Harlan and Other Equity Owners of Shelf Drilling, Ltd. Support $225 Million Purchase of Three Premium Jackup Rigs

Increases Shelf Drilling's Global Fleet to 40 Rigs Rigs Priced at Significant Discount to Replacement Cost

NEW YORK, July 11, 2017 /PRNewswire/ -- Castle Harlan, the New York private equity investment firm, said it and its equity partners, CHAMP Private Equity and Lime Rock Partners, supported Shelf Drilling, Ltd. in purchasing three premium jackup rigs located in the Middle East. The acquisition of the rigs is a continuation of Shelf Drilling's fit-for-purpose strategy of solely focusing on shallow water drilling, and further expands Shelf Drilling's leading market presence in one of its key operating regions.  Shelf Drilling is a leading international shallow-water offshore drilling contractor engaged in the provision of equipment and services for the drilling, completion and workover of offshore oil and natural gas wells.

Shelf Drilling completed the purchase and delivery in May of two of the three rigs – the West Resolute and the West Triton. The rigs have been renamed Shelf Drilling Resourceful and Shelf Drilling Tenacious, respectively. The third jackup rig – the West Mischief – is expected to be delivered to the Company during Q3 2017 upon completion of its current contract.  Following the purchase and delivery of all three rigs, Shelf Drilling's fleet will increase from 37 to 40 rigs.

Shelf Drilling financed the purchase through a US$225 million equity issuance listed on the Norwegian OTC list, and began trading under the ticker "SHLF" as of May 5, 2017.

"We are continuing to enhance the value of the company and its offerings to customers, and we will add rigs to Shelf Drilling's fleet when the price is attractive. These three rigs are especially suitable because they have a strong operating track record in the region and can reach deep into the sea floor where significant oil and gas deposits are found," said David Pittaway, Senior Managing Director of Castle Harlan.

Eric Schwartz, Managing Director of Castle Harlan, added that current market conditions provided an opportunistic time for buying shallow water jackup rigs, and in this case allowed Shelf Drilling to purchase these three rigs at a significant discount to both replacement cost and historical valuations.

About Castle Harlan
Castle Harlan, founded in 1987, has invested in controlling interests in and the development of middle-market companies globally. Its team of senior investment professionals completed over 50 acquisitions since its inception with a total value in excess of $11 billion.  The firm traces its roots to the start of the institutionalized private equity business in the late 1960s.  Additional information about Castle Harlan can be found at www.castleharlan.com

About Shelf Drilling
Shelf Drilling was founded in 2012 and has established itself as a leader within its industry through its fit-for-purpose strategy and close working relationship with industry leading clients.
Additional information about Shelf Drilling, including an updated company presentation, can be found at www.shelfdrilling.com.

Disclaimer 
This release does not constitute an offer to sell or a solicitation to buy any securities in any fund or product offered by Castle Harlan, Inc. or Shelf Drilling, Ltd., or their respective affiliates, and may not be relied upon in connection with any offer or sale of securities.  Such offer or solicitation may only be made pursuant to a current confidential private offering memorandum that will be provided only to qualified offerees.

View original content:http://www.prnewswire.com/news-releases/castle-harlan-and-other-equity-owners-of-shelf-drilling-ltd-support-225-million-purchase-of-three-premium-jackup-rigs-300485918.html

SOURCE Castle Harlan


Source: PR Newswire (July 11, 2017 - 8:00 AM EDT)

News by QuoteMedia
www.quotemedia.com

Legal Notice