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Amedeo confident of Explorer 1 sale despite delay

The buyer has requested that delivery of the rig be delayed until it has secured the appropriate funding
offshore oil rig
Amedeo has a 40% stake in YZJ - the company that has built the Explorer 1 rig

Infrastructure investor Amedeo Resources PLC (LON:AMED) is still “confident” in completing the sale of its Explorer 1 rig, despite experiencing a minor hiccup in the process.

The deal to sell the jack-up drilling rig is still on, but it has been delayed slightly after the purchaser said it needed a bit more time to get the finances and staff for the rig in place.

The makers of Explorer 1, YZJ Offshore – in which Amedeo has a 40% stake – had originally hoped to deliver the rig by the end of this year.

Even in the unlikely event that this original deal falls through, YZJ said it was sure it could find another buyer for the 350ft rig.

The Le Tourneau Super 116E Class design self-elevating mobile offshore jack up drilling rig – to give it its full name – is YZJ’s first rig order.

Everything on its end of the deal is complete, Amedeo said, other than the final checks which are normally carried out just immediately prior to delivery.

Shares were down 16% to 23.4p on Wednesday afternoon.

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Amedeo Resources PLC Timeline

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