News

NorAm Drilling Announces Closing Of Two Additional Land Rigs

NorAm Drilling Company (“NorAm”) is pleased to announce it has closed on its previously announced plan to acquire two additional land rigs from a third party. The acquisition, after completion of upgrades, will expand NorAm’s existing “Super Spec” land rig fleet from 9 to 11 rigs. NorAm anticipates that both rigs will be activated for service in early 2019.

NorAm Completes Share Consolidation and NOK 200mm (~$24mm) Rights Offering and Announces New Ticker: NORAM

NorAm Drilling Company AS (“NorAm”) is pleased to announce that it has completed a share consolidation plan in a ratio of 20:1. In addition, NorAm has completed a rights issue with its existing shareholders and certain directors and management.

 

A total of 10,000,000 new shares have been issued with total proceeds of NOK 200 million, or approximately USD 23.4 million. Following the share consolidation and rights offering, NorAm will have 23,392,317 shares outstanding. Proceeds from the rights issue will be utilized to acquire additional drilling rigs and for general corporate purposes.

 

Additionally, NorAm has changed its ticker symbol on the NOTC list in Oslo, Norway to “NORAM” from its previous ticker symbol of “GRIC”.

 

 

For further information please contact:

 

Marty L Jimmerson

CEO & CFO

+1 281-598-9200

www.noramdrilling.com

 

About NorAm

 

NorAm Drilling Company owns and operates a high-quality rig portfolio of 9 “Super Spec” advanced high-end AC driven rigs tailored for drilling of horizontal wells in the US land drilling market. These rigs are designed to combine the cost efficiency of a compact rig with the versatility of different rig classes, enabling the rigs to cover a broad range of wells for both liquids and gas. Currently, all of our rigs are operating in the Permian Basin in Texas.

NorAm Drilling announces plan to acquire and upgrade two additional rigs

NorAm Drilling Company (“NorAm”) is pleased to announce its plan to acquire two additional land rigs from a third party. The acquisition, after completion of upgrades, will expand NorAm’s existing “Super Spec” land rig fleet from 9 to 11 rigs. The closing is expected to occur on or before November 30, 2018 and then required upgrades will be completed to achieve “Super Spec” status on both rigs. NorAm anticipates that both rigs will be operational and active during the first quarter of 2019.

 

The rig(s) purchase price and upgrade costs will be financed by a combination of additional equity provided by its existing shareholders and available cash on hand. Additionally, NorAm will enter into certain amendments with its existing senior secured bond holders that among other things will (i) extend the maturity date and (ii) amend the amortization schedule. NorAm has received support for the transaction, equity raise and bond amendments from its largest shareholders and bondholders.

 

About NorAm

 

NorAm Drilling Company owns and operates a quality rig portfolio of 9 “Super Spec” advanced high-end AC driven rigs tailored for drilling of horizontal wells in the US land drilling market. Currently, all 9 of our rigs are operating in the Permian Basin. These rigs are designed to combine the cost efficiency of a compact rig with the versatility of different rig classes, enabling the rigs to cover a broad range of wells for both liquids and gas.

 

For further information please contact:

 

Marty L Jimmerson

CEO & CFO

281-598-9200

NorAm Drilling Company

1800 N. Sam Houston Parkway West

Suite 120

Houston, Texas 77064

Website: www.noramdrilling.com