S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Investor Presentation (June 2012)
33 slides from S.d. Standard Etc's investor presentation, June 2012
Slide 1: Standard Drilling Company Presentation June 2012
Standard Drilling Company Presentation June 2012
Slide 2: Purpose and Vision
PURPOSE S.D. Standard Drilling was established for the purpose of creating shareholder value by building a premium oilfield services company through superior assets, systems and people. VISION S.D. Standard Drilling will build a world‐class drilling company focused on the safety of its crew, satisfy
Slide 3: Standard Drilling Strengths
Standard Drilling Strengths Experienced Management Committed and Experienced Team with Strong Track Sponsors Record Proven Rig Design Conservative Financial Profile Constructed at an Experienced Shipyard Source: Company 3
Slide 4: Company Timeline
Company Timeline 2014: One rig to be delivered 2012: Marketing the rigs Raising takeout financing Establishing operations Oct 2011: Hired CFO Geir Johansen 2013: Five rigs to be delivered April 2011: $330 million private placement Acquired two rigs from Clearwater Q1 2012 Hired VP HSEQ, VP Eng., Mgr
Slide 5: Proven Rig Design Constructed at an Experienced Shipyard
Proven Rig Design Constructed at an Experienced Shipyard Proven Rig Design Accepted Across the Industry The KFELS B‐Class jackup rig is a first class rig design accepted by all major E&P companies 24 Mod V B Class jackup units built by Keppel in Singapore since 2006 State‐of‐the‐art equipmen
Slide 6: KFELS mod V B-class
KFELS mod V B-class Yard Design Operating water depth Drilling depths Hull size (I x b) Leg length Cantilever outreach Transverse cantilever reach Load capacity at center / 70 ft Load capacity at 15 ft transverse offset / 70 ft extension BOP Stack HPHT capabilities Mud Pumps Liquid mud capacity Bulk
Slide 7: Superior Delivery Schedule
Superior Delivery Schedule First remaining rig delivery in February 2013 Uniform rig design reduces project cost and creates efficiency in post delivery operations Timeline ¾Q4 ¾Q1 ¾Q2 ¾Q3 ¾Q4 ¾Q1 ¾Q2 ¾Q3 ¾Q4 ¾Q1 ¾Q2 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 July B 319 2012 Feb B 32
Slide 8: S.D. Standard Drilling PLC Group – Legal Structure
S.D. Standard Drilling PLC. Group – Legal Structure Investors Ol A Oslo Axess S D Standard S.D. St d d Drilling D illi Plc. Pl Cyprus 100 % Offshore Driller Offshore Driller Offshore Driller Offshore Driller Offshore Driller Offshore Driller S.D. Standard 2 Ltd. 3 Ltd. 4 Ltd. Drilling Pte Ltd. B324
Slide 9: Equity Ownership by Country
Equity Ownership by Country Equity Ownership by Country 2% 2% 3% 3% 2% Norway 4% Cayman Islands 30% USA 5% Belgium UK 9% Germanyy Sweden Luxembourg 10% Monaco Finland 30% Other 9
Slide 10: Committed and Experienced Sponsors
Committed and Experienced Sponsors Asian focused private equity firm with Norwegian investment firm with solid track record substantial experience in the offshore drilling sector Activelyy involved in p portfolio companies, p assisting companies in improving Successfully invested in 16 rig p
Slide 11: Standard Drilling – Corporate Structure
Standard Drilling – Corporate Structure CEO Adm mgr Adm.mgr. CFO COO VP-Mkt. Accounting Engineering Tendering Procurement HSEQ Marketing IT & O Operations ti Integration HR Crewing 11
Slide 12: Management Team
Management Team • Martin Nes has more than 15 years of experience within the maritime and offshore industry. He CEO has a law degree from University of Oslo, Norway and also holds a Master of laws’ degree from Martin Nes University of Southampton, England. He started his career as a lawyer with the
Slide 13: Management Team
Management Team • Prior to joining our Company, Mr Kelley have for the past four years been an independent consultant providing expert advice and counsel on proprietary initiatives, large-scale collaborative projects and organizational development for major independent and state-owned state owned oi
Slide 14: Management Team
Management Team • Mr. Cunningham has over 35 years of industry experience from around the world. Prior to joining Standard Drilling, Mr. Cunningham served as Vice President Engineering at Hercules Offshore, Inc., owner of one of the largest g shallow water jjackup p rig g drilling g fleets in the wo
Slide 15: Management Team
Management Team • Mr. Bridle has almost 25 years of experience working in the exploration and production industry and brings extensive experience developing safety cultures and achieving world class safety performance by building engaged and motivated workforces. From 2007 to 2012, Mr. Bridle was HS
Slide 16: Management Team
Management Team • Mr. Roberts obe s hasas more o e than a 25 5 yea years soof e experience pe e ce working o g in d drilling g rig g ope operations, a o s, co construction s uc o and quality assurance and has overseen multinational workforces on projects worldwide. Prior to his appointment at Standa
Slide 17: The International Jack-up Market
The International Jack‐up Market Source; FearnleyFonds , ODS-Petrodata 17
Slide 18: Age Development Global Jackup Fleet
Age Development Global Jackup Fleet 55% of the fleet is above 30 years old and close to the end of the useful life of the equipment Near 20 year period where few jackups were constructed Increasing pressure post the Macondo accident for new, premium equipment Demand for newbuilds expected to
Slide 19: Continued removal of jackups from the market
Continued removal of jackups from the market 19
Slide 20: Continued removal of jackups from the market
Continued removal of jackups from the market • Over the past 6 months, the number of cold stacked rigs have gone from 59 to 48. • 11x units have bee scrapped/converted • The number of reactivations has been the same as the number of rigs put into cold stacked mode (2x). • Meanwhile, the number of wa
Slide 21: Jack-ups hitting the SPS wall
Jack‐ups hitting the SPS wall 21
Slide 22: Dayrates and Contract Duration is Increasing
Dayrates and Contract Duration is Increasing 22
Slide 23: Strong Earnings Potential
Strong Earnings Potential Premium Jackup Dayrates Premium Jackup Dayrates Rates peaked at $225k/day in 2006 and stayed above $200k/day until the fall of 2008 Contract awards in 2009 were between $100‐ 130k/day Several recent contract awards in the $150 ‐ $160k/day range Pareto 2012 estimat
Slide 24: Valuation – Implied Value Per Rig
Valuation – Implied Value Per Rig USD per Share as of 6/11/2012 USD $1.29 M k t Cap Market C as off 6/11/2012 $338 Plus: Outstanding Payments to Keppel $903 Less: Cash estimates as of end Q1 2012 $ $119 EV $1,122 EV/Rig $187.0 Current Newbuild Price* $205.0 Newbuild Parity** $218.0 * Broker estimate
Slide 25: Significant Equity Upside Potential
Significant Equity Upside Potential Asset Value Sensitivity 3.5 3.0 3.0 are Price Newbuild 2.5 2.5 Parity 2.0 plicit SDSD Sha 2.0 SDSD @ Market 1.6 1.5 1.3 1.1 1.0 0.9 Imp 0.5 0.0 170 180 187 200 218 240 260 Rig Value US$ M * Newbuild parity calculated based on a yard price of $200mm, $10.3mm for ea
Slide 26: Disclaimer
Disclaimer This Presentation has been produced by S.D. S D Standard Drilling Plc (the “Company” Company or “Standard Standard Drilling Drilling”)) solely for use at the presentation to investors and other stake holders and may not be reproduced or redistributed, in whole or in part, to any other p
Slide 27: Appendix
APPENDIX GQ) stanvaro DRILLING
Slide 28: Sponsors: Ferncliff
Sponsors: Ferncliff Ferncliff Ferncliff was established in 1995 as Tycoon Industrier AS, which was a pure trading company at the start Ferncliff has three business areas: Direct Active Investments, Ferncliff Finance and Ferncliff Property Investor Group Øystein Stray Spetalen Glen Ole Rødland Gu
Slide 29: A Selection of Ferncliff Case Studies
A Selection of Ferncliff Case Studies Standard Drilling ASA Songa Offshore Ferncliff Drilling Founded in 2006 by Spetalen under the Spetalen was a founder with a 37.5 % Founded by Spetalen in 2006 name Standard Drilling stake in the acquisition of 2 semi‐ Ferncliff Drilling ordered a USDm 54
Slide 30: Sponsors: Clearwater Capital Partners
Sponsors: Clearwater Capital Partners Clearwater Capital Partners Clearwater Capital Partners (“Clearwater”) is an Asia‐dedicated credit and special situtations firm founded in 2001 and has invested over $3 billion since inception Clearwater comprises a 7070‐person person team of experienced ana
Slide 31: A Selection of Clearwater Case Studies
A Selection of Clearwater Case Studies Griffin Coal Pacnet AERIX Griffin Coal is 1 of 2 coal mining companies in Pacnet is the owner/operator of the largest Korea‐based provider of air pollution control Western Australia with 250mm tons reserves, undersea cable network in Asia Pacific equipmen
Slide 32: Board of Directors
Board of Directors Øystein Stray Spetalen Robert Petty ¾ Chairman and owner of Ferncliff TIH AS ¾ Managing Partner and Co‐Founder of Clearwater ¾ Co‐Founder and Director of S.D. Standard Drilling Capital Partners ¾ Successful investment track record ¾ Director of S.D. Standard Drilling ¾ Founder of
Slide 33: Contacts
Contacts: S.D. Standard Drilling (S) Pte Ltd Level 31, Six Battery Road Singapore 049909 Phone: +65 65 6550 9712 Website: www.standard‐drilling.com 33
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