Dolphin Drilling has announced a company update following the release of the first quarter 2023 financial results. The key event during the quarter was the commencement of the drilling contract of the Blackford Dolphin with General Hydrocarbons Limited (GHL).
'During the first quarter of 2023, Dolphin Drilling marked a new start for the company as the Blackford Dolphin commenced its drilling contract with GHL in Nigeria and returned to revenue-generating operations. The Blackford Dolphin is well positioned to generate strong cash flow in the coming years with back-to-back contracts secured for two drilling campaigns. Moreover, we note increased rig demand in the West Africa region and limited available rig supply,' says Bjørnar Iversen, CEO of Dolphin Drilling.
Dolphin Drilling reported total revenues of USD 1.8 million in the first quarter of 2023, compared to USD 0.4 million in the fourth quarter of 2022. The Blackford Dolphin spent most of the quarter involved with the planned periodic survey, recertification, and contract preparation for the GHL contract. Blackford Dolphin commenced the 12-month contract with GHL in Nigeria on March 25, 2023.
During the first quarter, Dolphin Drilling converted an earlier signed Letter of Award (LOA) into a firm contract that secured earning visibility into mid-2025 subject to options periods being exercised. The new contract with Peak Petroleum at the neighboring field has a dayrate of USD 275,000 plus a USD 6 million mobilization fee, providing a strong uptick from the GHL contract.
'Our two stacked harsh environment moored semisubmersible rigs have been extensively marketed in the period. We recognize an increased interest in the rigs, underlying the strengthened global rig demand and disciplined bidding strategy among drilling contractors. Furthermore, we note of increased attention for the pair of newbuild semisubmersible rigs, which are marketed for work in harsh environments,' Bjørnar Iversen adds.
Source: Dolphin Drilling
