3.2.2025 07:00:00 CET | Seabird Exploration Plc | Additional regulated
information required to be disclosed under the laws of a member state

Nicosia, Cyprus - 3 February 2025 - SeaBird Exploration Plc ("SeaBird"), a
leading provider of marine seismic acquisition services, today announces that it
has signed a letter of intent (LOI) to combine with premier tender assisted
drilling provider, Energy Drilling Pte Ltd ("Energy Drilling") in a
share-for-share acquisition (the "Transaction"). The combined company will be a
diversified offshore oil and gas services provider with strong cash flows and
significant capacity for near-term shareholder distributions. 

The Transaction will be carried out by issuing approximately 651 million new
SeaBird shares to Energy Drilling shareholders. The listed company will in
conjunction with the transaction change its name, while the seismic and drilling
businesses will continue to operate as Seabird Exploration and Energy Drilling. 

 

ESTABLISHING AN OFFSHORE LEADER WITH ATTRACTIVE CASH FLOWS AND SHAREHOLDER
RETURNS
Headquartered in Singapore, Energy Drilling controls approximately 38% of the
world's actively marketed tender rigs, strategically positioned to address
Southeast Asia's growing demand for natural gas to fuel its growth. With
approximately 80% of available days contracted for 2025 and 2026 and limited
capex commitments going forward, Energy Drilling offers significant cash flow
visibility, supported by a firm revenue backlog of USD 490 million. 

Based on the latest SeaBird closing share price, currency ratio, net debt and
backlog, the combined company will have a pro-forma market capitalization of USD
381 million, net debt of approximately USD 44 million and an estimated asset
EBITDA backlog of more than USD 320 million, supporting strong cash flow
visibility for the next two years. 

"Merging with an operationally and financially robust market leader provides our
shareholders with increased scale and reduced operational risk. Energy Drilling
shares our focus on niche market leadership with strong profitability and a
capital allocation strategy that prioritizes distribution of all excess cash to
shareholders. Based on already solid backlog visibility, our ambition is to
create a leading dividend platform within offshore oil and gas services," said
Ståle Rodahl, Executive Chairman of Seabird Exploration. 

 

STRONG COMMITMENT TO SUSTAINED SHAREHOLDER DISTRIBUTIONS 
Shareholder distributions will be a key priority for the combined entity, with
an ambition to distribute all excess liquidity on a quarterly basis. The
projected 2025/26 free cash flow to equity - and thereby dividend potential -
sums up to more than 50% of the current share price. This includes the approved
NOK 0.40 per shares of set for distribution in Q1 2025 and is based on
conservative re-contracting assumptions. Additionally, there is potential to
refinance the combined debt to further optimize shareholder distributions. 

Alf C. Thorkildsen, Chairman of Energy Drilling, stated: "This merger represents
a transformative opportunity for our shareholders and other stakeholders. By
joining forces with SeaBird, we are creating a publicly listed company uniquely
positioned to deliver industry-leading shareholder returns through distributions
and accretive growth, while retaining our robust financial position and
flexibility." 

The combined entity will have ample financial flexibility to pursue growth
opportunities within existing segments as well as in the broader offshore oil
services industry. It will only consider growth opportunities that are accretive
to shareholders while maintaining low financial risk and cash flow visibility. 

 

KEY TERMS AND CONDITIONS
The agreed exchange ratio will result in Energy Drilling shareholders owning 89%
of the combined company. Based on SeaBird's closing share price on January 31st 
2025 of NOK 5.89, the equity value of Energy Drilling in the transaction is NOK
3,835 million. The transaction is supported by the Board of Directors ("BoD") of
both companies and the shareholders of Energy Drilling. In addition, the five
largest shareholders in SeaBird