Dolphin Drilling sells “Blackford Dolphin” and enters into partnership with SPM

Oslo, 26 October 2026 – Dolphin Drilling AS (Euronext Growth Oslo: ”DDRIL”, "Dolphin Drilling" or the "Company") today announces that it has entered into a definitive sale and purchase agreement dated 26 October 2026 (“SPA”) for the sale of the semi-submersible drilling rig “Blackford Dolphin” (the “Sale”) with SPM Energy Shipping FZCO ("SPM" and together with Dolphin Drilling, the “Parties”).

In addition, the Parties have entered into a memorandum of understanding dated 26 October 2026, for the management of future drilling contracts of “Blackford Dolphin” and one additional semi-submersible drilling rig, as well as any other rigs or units that the Parties may agree upon (the “Management Arrangements”). 

The Management Arrangements contemplate entry into management agreements and other agreements, which remain subject to definitive documentation and customary closing conditions.

Highlights

• Strategic partnership: the contemplated Management Arrangements combines Dolphin Drilling´s established operating platform, technical expertise and long track-record with the strong commercial presence of the participating companies in India and the surrounding regions.

• Significant financial de-risking: the Sale is expected to close on or about 5 November 2026 in Singapore, immediately and materially reducing Dolphin Drilling’s operating cost base, eliminating the class renewal survey capital expenditures related to “Blackford Dolphin” and significantly strengthening the Company´s financial position.

• Enhanced financial stability: Dolphin Drilling reported at the end of 2^nd quarter 2026 improved financial figures, including total cash of USD 55.1 million and firm revenue contracted backlog of USD 556 million, with a further USD 446 million in options, resulting from multi-year contracts secured for “Paul B. Loyd Jr.” and “Borgland Dolphin”. This significant contract backlog, combined with the Sale of “Blackford Dolphin” and the potential Management Arrangements further enhances the Company´s financial stability and long-term outlook.

• Strategic initiatives: following the Sale of “Blackford Dolphin” and the strategic partnership with SPM and their marketing consultant Valiant Oil and Gas LLC (“VOG”) through the Management Arrangements, Dolphin Drilling is well positioned to continue to evaluate and pursue strategic initiatives aimed at enhancing long-term shareholder value, including organic growth opportunities.

• Best in class operational platform: in the most recent reported quarter, “Paul B. Loyd Jr.” achieved 99.8% uptime and “Blackford Dolphin” 90.2%, with the rig achieving 1,000 days lost-time-injury free.

Transactions

Pursuant to the Sale, a subsidiary of Dolphin Drilling has agreed to sell “Blackford Dolphin” to SPM or its guaranteed nominee, for a total consideration of USD 25 million, comprising USD 10 million, payable upon delivery of the rig and USD 15 million, payable when SPM receives the first payment under a potential future drilling contract. The Sale is expected to close on or about 5 November 2026 in Singapore.

Pursuant to the Management Arrangements, the rigs shall be marketed by SPM in India and other areas agreed between the Parties. Capital costs, operational expenses and guarantees related to future drilling contracts would be covered by SPM as owners of the rigs.

“Dolphin Drilling will through the Sale and contemplated Management Arrangements materially de-risk the Company and at the same time, significantly reduce operating costs as well as eliminate capital expenditures associated with the class renewal survey for the “Blackford Dolphin”. The transactions provide for potential future upside through management of “Blackford Dolphin” and one or more additional semi-submersible drilling rig resulting in future management fees and ability to grow our platform” said Ronny Bjørnådal, Chairman of the Board of Directors of Dolphin Drilling. 

Strategic rationale

Dolphin Drilling believes the Sale and Management Arrangements offers a compelling combination of immediate risk reduction and value realisation, while preserving exposure to the potential upside from improving offshore drilling market fundamentals and a further tightening of the supply and demand balance.

The transactions are highly attractive to Dolphin Drilling as they are expected to reduce the Company’s interest-bearing debt and its capital expenditures related to “Blackford Dolphin”, while creating opportunities for future revenue generation from “Blackford Dolphin” and other rigs under management, complementing the Company´s existing operating model with capital-light revenue streams. 

The strategic partnership aligns well with Dolphin Drilling’s broader, ongoing evaluation of strategic initiatives and business opportunities to participate in industry consolidation and further growth.

“The Management Arrangements would combine SPM´s commercial capabilities, market access and relationships in some of the most active benign-water markets in the world with Dolphin Drilling´s established operating platform, technical expertise and worldwide operating licenses, a proven operating platform and decades of experience. This gives us the flexibility to capture the prospective upside of a tightening rig market, while strengthening our platform and driving long-term shareholder value,” says Ronny Bjørnådal. 

Solid market outlook
 
The market for semi-submersible drilling rigs, the segment in which Dolphin Drilling’s fleet operates, remains tight. Years of limited newbuild activity, combined with the retirement and scrapping of older units, have significantly reduced the available supply of moored floaters, and there is no newbuild pipeline to replenish the fleet. At the same time, demand is supported by a renewed focus on energy security and increased investments in offshore developments, including in benign-water regions such as India, Southeast Asia, Mexico and West Africa. Utilisation for moored floaters remains high and the pool of available, contract-ready units is limited, supporting higher day rates and longer-term drilling contracts.

For further information, please contact: 

Ronny Bjørnådal 
Chairman of the Board of Directors
Mobile: +47 918 50 549 
E-mail: ronny@bjornadal.info 

Ingolf Gillesdal
Chief Financial Officer
Mobile: +47 920 45 320
E-mail: ingolf.gillesdal@dolphindrilling.com
 
About Dolphin Drilling AS 

Dolphin Drilling AS, headquartered in Aberdeen, UK is an owner and operator of a fleet of harsh environment mid-water and deepwater semisubmersible drilling rigs, capable of working worldwide, with a long track record of safe and efficient operations. Following the transactions described herein, the Company owns two harsh-environment mid-water and deep-water semi-submersible drilling rigs and has a total of four semi-submersible rigs under management. 

About Valiant Oil & Gas LLC

Valiant Oil and Gas LLC (“VOG”) is a Delaware-based offshore drilling and energy services company focused on acquiring, reactivating and operating mobile offshore drilling units for national and international oil companies. VOG has operations in India, Ecuador, Canada and the UAE.

Led by Managing Partner Sanket Gang, who brings over 20 years of experience in offshore drilling, rig acquisitions and energy infrastructure, VOG targets undervalued assets and returns them to productive service through lean, safety-focused operations. The company aims to develop its portfolio of managing semi-submersible drilling units and associated services, to expand its position in the deepwater and mid-water market in India and other emerging offshore markets.

About SPM Energy Shipping FZCO

SPM Energy Shipping FZCO (“SPM”), headquartered in Dubai, United Arab Emirates, is a diversified ship owning and maritime operating company engaged in energy transportation, dry bulk shipping and offshore marine services.
 
Established in 2023 and supported by a group with maritime experience dating to 1994, the company serves international energy and commodity markets through an expanding fleet. SPM’s diversified portfolio includes nine tankers, comprising two Very Large Crude Carriers (VLCCs), four Very Large Gas Carriers (VLGCs), including two acquired through joint ventures, three Capesize bulk carriers and 20 offshore support vessels across its UAE and Indian operations. 

Drawing upon the wider group’s more than three decades of maritime experience, SPM continues to strengthen and expand its presence across the international shipping and offshore energy sectors. 

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.