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Vantage Drilling Company Message Board

  • zalm_met_viagra zalm_met_viagra Nov 20, 2012 5:22 PM Flag

    New drillship order - JV with Skeie

    well. this surprises me

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    • we grow in an attractive way. If there was a compelling argument that we might be acquired because of our fleet - that fleet is getting larger. I don't think that's the plan though....

      Hard not to look at this as a positive.

      • 1 Reply to wreckedred
      • This is one of the more impressive deals Bragg has done. We were able to leverage the construction oversight, marketing, and operational capabilities for a 42% equity stake and only $31mm down. Would be great to see another deal like this next year. The JV partner could be someone that could eventually take SU's stake on and be a key strategic partner longer term. Nordic companies can also attain extremely attractive financing compared to U.S. Ocean Rig was a success story for them and they are focused on shareholder friendly M&A so this venture has legs. I wonder if the Mexican jackup construction management opportunity could be structured similarily. Great way to diversify risk going forward.

        One company i have my eye on is Prospector Drilling, impressive fleet of high spec jackups built for the north sea coming online in 2013. Company is trading below book and equity is only $130mm. Would love to see Bragg issue stock for this company to grow the fleet and diversify our geographic presence. I know this is a stretch but we need to get this company moving post Tungsten and this company is an attractive target.

        Conducting this deal also gives me a little more confidence the $40mm mobilization fee is forth coming and commencement is imminent if we are paying up $31mm for the new build.

        I like the new build deal but doesnt make up for the early refi which was was extremely costly and has blown book value out of the water.

 
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