HOUSTON, Dec. 9, 2013 /PRNewswire/ -- Northern Offshore, Ltd. (Oslo Bors: NOF.OL) today announced that the company has executed a letter of intent with CAMAC International Limited, an affiliate of CAMAC Energy Inc. (NYSE MKT: CAK), for the drillship Energy Searcher. The letter of intent, which is subject to customary conditions, provides for a subsidiary of Northern Offshore to work towards executing a definitive drilling contract on or before December 31, 2013.
Gary W. Casswell, Northern Offshore's president and CEO, said "We are very pleased to work with CAMAC on their development and exploration program offshore Nigeria. This letter of intent allows Northern Offshore the opportunity to relocate the Energy Searcher into a new geographical jurisdiction with robust market potential for a new client. We look forward to a successful drilling program and building a longstanding relationship with CAMAC."
The letter of intent commits to an initial contract period of one year, with an option to extend the contact for an additional one-year term. Commencement of drilling activities on the Oyo Field offshore Nigeria is expected during the first half of 2014. The contract value for the first one-year term is approximately US$100 million, excluding mobilization fees.
About the Company
Northern Offshore, Ltd. is a Bermuda holding company which operates offshore oil and gas drilling units and one production vessel in various markets around the world, including the North Sea, the Indian Ocean and Southeast Asia. The company's fleet consists of four drilling units (a drillship, a semisubmersible and two jackup drilling rigs) and one floating production facility. More information on Northern Offshore, Ltd. may be found by visiting the company's website at http://www.northernoffshorelimited.com.
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This announcement contains statements that reflect the company's expectations or predictions of the future. These statements are forward-looking statements. These forward-looking statements may include statements regarding earnings guidance, capital allocation strategy, the impact of activity levels, business performance, and other market and industry conditions. The company's actual results could differ materially from those reflected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the company's regulatory filings. The company disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.
SOURCE Northern Offshore, Ltd.