Northern Ocean to become a pure with rigs / drillships, Winterized, Harsh environment & Arctic Classifications.
We have probably seen the bottom for a long time to come and that we are now slowly
creeping upwards as revenue comes on both West rigs.
West Mira is soon on contract again; after a trip to Kristiansund ( west coast Norway )
fitting a new lifeboat.
Now actively on field gaining rate of $ 290,000 plus bonus. ( Remind you the
NODL paid $365 million for the rig. )
West Bollsta was purchased for usd 400 million and on charter to Lundin, Norway
for a contract with Ludin of 305,000 plus bonus.
The company has approximately
USD 400 million in debt with for 2 HE rigs ON contract.
NODL will generate good cash flow in 2020 and will be one of the few that will make a profit.
These rigs are bought at a Great discount and will generate much more, Net, than any rig in the costly Norwegian shelf, in the North Sea.
West Bollsta was contracted for nearly $ 700 million by Fred Olsen Energy.
NODL has cheap financing, compared to its competitors with 350bps Llibor.
When the company bought West Mira for $ 365 million, and an IPO of $ 230 million
materialized. IPO based on PPS of NOK 43.00. The market for HE rigs was absolutely
miserable and the rates were around $ 150,000.
Now West Mira is on contract @ double of such rate.
West Mira and West Bollsta are estimated by Professional and respected broker House,
Bassoe Offshore, @ about USD 500 million, under the prevailing market.
Need I say more. Rather than purchasing NOL ( Northern Ocean ) @ the OTC market on OSE, much better to buy NODL @ NOK 13,86, RTQ @ time of writing. [ remind you IPO based on PPS of NOK 43. )
I consider buying NODL today, as an option for shares in NOL, [ present shareholder are NOT obliged to convert to NOL shares, quite contrary, there might not be enough shares in NOL to go around, for all present sharholders in NODL.
But we have yet to see how the Consideration present shareholder in NODL get !
Remind you also, NODL will after the transaction own 70 % of NOL.
Sit tight, I am, and quite content with my average, although could have been NOK 20 lower,