Shelf Drilling (SHLF) Investor Presentation summary

Transaction overview

• Shelf Drilling is acquiring the remaining 40% of Shelf Drilling North Sea (SDNS) via a merger, consolidating full ownership.

• The offer includes 1.05 SHLF shares and NOK 8.00 in cash per SDNS share, totaling $30 million in cash and 42 million new shares.

• Both boards unanimously support the deal, with 83% of SDNS shareholders committed to vote in favor.

• Completion is expected in the second half of October 2024, following a general meeting on October 10.

• The transaction will fully consolidate SDNS into Shelf Drilling, enhancing its global jack-up rig operator position.

Strategic rationale

• The merger will high-grade the fleet with four premium jack-ups and one CJ70 rig.

• Simplifies the capital structure and increases share liquidity, improving access to capital markets.

• Addresses SDNS's immediate cash needs efficiently, ensuring ongoing support from Shelf Drilling.

• Strengthens Shelf Drilling’s unique operating platform and market presence.

Fleet and market impact

• Post-transaction, the combined fleet will consist of 34 rigs, including 13 premium and 20 standard rigs.

• The company will solidify its position as a top global jack-up operator.

• The transaction accounts for the sale of the Baltic jack-up and potential retirement of Trident VIII.