Borr Drilling Limited - Announcement of LOI for jack-up drilling rig

Rhea-AI Summary

Borr Drilling Limited (NYSE: BORR) has secured a binding Letter of Intent (LOI) for the premium jack-up drilling rig 'Prospector 5' from an undisclosed West African operator. This agreement entails a firm program of six wells expected to begin in Q4 2022, with an estimated duration of fourteen months and potential options. The total estimated contract value is $68.9 million, excluding options. While the LOI is anticipated to convert into a formal contract soon, investors should note the inherent risks associated with forward-looking statements regarding future performance and market conditions.

Positive

• Secured LOI for 'Prospector 5' drilling rig from an undisclosed operator.
• Estimated contract value of $68.9 million, enhancing revenue potential.
• Six well program expected to commence in Q4 2022, indicating future operational activity.

Negative

• LOI is not yet a confirmed contract, representing uncertainty until finalized.
• Forward-looking statements carry inherent risks, including potential performance issues.

HAMILTON, Bermuda, Aug. 4, 2022 /PRNewswire/ -- Borr Drilling Limited (NYSE: BORR) (OSE: BORR) is pleased to announce it has received a binding Letter of Intent ("LOI") for the premium jack-up drilling rig "Prospector 5" from an undisclosed operator in West Africa. The 6-well firm program is expected to commence during Q4 2022 and has an estimated duration of fourteen months plus options. This LOI, which is expected to be converted into a contract shortly, has an estimated total contract value of $68.9 million (excluding options).

Forward looking statements

This press release includes forward looking statements, which do not reflect historical facts and may be identified by words such as "expect", "estimated" and similar expressions and include statements relating to rig contracting and options including the duration of such contracts and extensions and backlog, and other non-historical statements. Such forward -looking statements are subject to risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward-looking statements included herein, including risks related to actual performance under drilling contracts, the risk that backlog may not be realized, the number of rigs that will be in operation and rates that are achieved, and other risks and uncertainties described in the section entitled "Risk Factors" in our most recent annual report on Form 20-F and other filings with the Securities and Exchange Commission. Such risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward -looking statements included herein. These forward-looking statements are made only as of the date of this release. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

 

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SOURCE Borr Drilling Limited

FAQ

What is the estimated contract value of the LOI for BORR's rig?

The estimated contract value is $68.9 million.

When is the drilling program for the LOI expected to commence?

The drilling program is expected to commence in Q4 2022.

How many wells are included in the LOI for BORR's rig?

The LOI includes a six well firm program.

What rig did BORR receive an LOI for?

BORR received an LOI for the jack-up drilling rig 'Prospector 5'.

Where is the operator for BORR's LOI located?

The operator is located in West Africa.