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.
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
NorAm Drilling Company
1800 N. Sam Houston Parkway West
Houston, Texas 77064