Nordic Winter

[escveritas]

UPDATE ON ARBITRATION PROCESSES

Aberdeen, 14th of March 2023

Reference is made to the stock exchange notice from Awilco Drilling PLC (“Awilco Drilling” or the “Company”) (Euronext Growth: AWDR) published on 22nd of December 2022 and the Q2 2022 Presentation of 9th August 2022.

The Company advises that proceedings in the Rig 1 arbitration process completed on 13th January 2023 and the parties now await the judgement of the tribunal. Award on this arbitration case is still anticipated in Q2 2023.

The Company also advises that the Tribunal has ordered additional hearing days in the Rig 2 arbitration case, whereby the proceedings in that process are not now expected to complete before Q3 2022. As a consequence of these additional hearing days, and the extensive increase in expert witness evidence and necessary further input from legal advisers, the Company identifies that additional funding will be required. The Company estimates that in addition to the USD 2.0 million planned raised through the announced subsequent offering, a further requirement is forecasted in the region of USD 5 million to enable Awilco Rig 2 Pte. Ltd to pursue the arbitration case to a conclusion. Further funding is expected needed by May 2023. Award on this arbitration case is now anticipated in Q4 2023 or Q1 2024.

Awilhelmsen Offshore AS and QVT Family Office Fund LP remain committed to enable Awilco Rig 1 Pte. Ltd and Awilco Rig 2 Pte. Ltd to pursue the arbitration cases to their conclusion.

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RULING OF THE FIRST ARBITRATION CASE

Reference is made to the stock exchange release of 8 June 2020 from Awilco Drilling PLC (“Awilco Drilling”) regarding the termination of the newbuilding contract between Awilco Rig 1 Pte. Ltd. (“AR1”) and Keppel FELS Limited (“KFELS”) for the construction of a semi-submersible drilling rig, hull number B379, as a result of breaches under the Vessel Construction Contract.

Today, the Company has received the arbitration tribunal ruling which has awarded in favour of KFELS.

AR1 is disappointed with the Tribunal’s decision and is currently reviewing the award to establish if grounds exist for appeal and, if so the merits of such an appeal. We will revert with further information as soon as the detailed review of the arbitration award has been completed.

Aberdeen, 21 April 2023