SeaBird Exploration and Energy Drilling to Merge, Creating Offshore Oil and Gas Services Powerhouse

Marine seismic specialist SeaBird Exploration and Singapore’s tender drilling rig specialist Energy Drilling are set to merge in a share-for-share deal, forming a diversified offshore oil and gas services player.

Under a letter of intent, the transaction will involve issuing approximately 651 million new SeaBird shares to Energy Drilling shareholders. The new entity will be listed on the stock exchange, with the seismic and drilling businesses operating as Seabird Exploration and Energy Drilling.

With SeaBird’s latest closing share price at NOK5.89 ($0.52), currency ratio, net debt, and backlog, the combined company is projected to have a pro forma market cap of $381 million, net debt of around $44 million, and an estimated asset EBITDA backlog exceeding $320 million.

Creating a Leading Dividend Platform

Ståle Rodahl, executive chairman of Seabird, expressed the company’s ambition to establish a leading dividend platform within offshore oil and gas services based on solid backlog visibility.

SeaBird currently operates two seismic vessels, while Energy Drilling, backed by Pioneer Logistics, possesses six tender rig assets in Southeast Asia, representing approximately 38% of the world’s actively marketed units and securing about 80% of available days contracted for 2025 and 2026.

Energy Drilling shareholders will own 89% of the combined company, with the equity value of Energy Drilling estimated at nearly $400 million. The transaction has received the endorsement of both companies’ boards of directors, as well as SeaBird’s five largest shareholders, including Magnus Halvorsen’s MH Capital, who collectively hold about 39% of outstanding shares in SeaBird.

Anticipated Closing in Q2

The merger is expected to be finalized in the second quarter of this year, subject to meeting certain closing conditions.

Alf Thorkildsen, chairman of Energy Drilling, remarked that the merger presents a transformative opportunity for shareholders and stakeholders, positioning the combined company to deliver industry-leading shareholder returns through distributions and accretive growth while maintaining a strong financial position and flexibility.