 In 2006 Skeie Drilling & Production ASA signed a contract with Keppel FELS, Singapore to build three jack-up rigs which will be among the world`s largest dual mode rigs (drilling/production). Delivery date for all rigs will be during 2010.
The jack-up drilling rigs will be operated by Skeie Rig Management, a wholly-owned subsidiary in the Skeie Group, which also has a management support agreement with Pier Offshore Management Services. 
Skeie Drilling and Production (SKDP), and thereby also Skeie Rig Management AS, has been bought by Rowan Companies Inc . Rowan has completed its due diligence process and board approval, and currently controls over 50% of the shares in SKDP.
The Company will launch a tender offer for the remaining 49.7% of SKDP's outstanding ordinary shares and expects to complete the tender offer in September 2010, following the prospectus review of the Norwegian Financial Supervisory Authority.
Under the terms of the tender offer, Rowan will issue 0.00574 shares of its common stock for each outstanding ordinary share of SKDP held by the remaining SKDP shareholders (or 5,741.67 Rowan shares per one million SKDP shares), for a total of approximately 6,061,286 Rowan shares. This exchange ratio was agreed to based on an SKDP equity valuation of approximately 1 Norwegian Kroner (NOK) per share. These are the same terms under which Rowan will acquire the Sellers' shares of SKDP.
The decision to purchase SKDP was unanimous in the Rowan Board of Directors and they highly regard the standard and quality of both the N-Class rigs and the SRM personnel. The combined company will create a strong entity going forward and it will certainly give SKDP a better competitive position with Rowan's operational experience and long track-record from offshore drilling.
For further information enter the following web page: www.skeiedrilling.com
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