Billion NOK agreement for Golden Energy Offshore Services AS

Golden Energy Offshore Services AS is pleased to announce that they today entered into a binding Memorandum of Agreement (MoA) on the acquisition of 4 PSVs and 1 SSV from subsidiaries of Vroon Holding B.V. for a total of USD 94 million.

– This is something we have been working on for a long time. This investment transforms the company into a modern offshore company, with a new and environmentally friendly fleet. All five purchased vessels were built in 2015 and 2016, lowering the GEOS fleet's average age to 7.9 years. In addition, we have gathered everything in one company and cleaned up the balance sheet. We will continue to expand and seek more opportunities in the market – and really become a player to be reckoned with in the offshore market going forward, says CEO of Golden Energy Offshore Services, Per Ivar Fagervoll.

These transactions modernize and streamline the company's fleet of PSVs and provide the company with versatile tonnage. This enables the company to seize market opportunities in both the oil, gas, offshore and renewables markets.

– We are buying five boats at a good price, and we are significantly strengthening our cooperation with Oaktree. Now we're going to continue the good work that has been put in and really push the pedal to the metal. The company is geared for further expansion and value creation, and this is just the start of a new offshore adventure in Sunnmøre, says Fagervoll.

The 4 PSVs are of the same design as GEOS' existing wholly-owned vessels, offering flexibility in chartering as well as operating costs. All of the company's PSVs can provide supply services to a strong oil and gas market but are versatile vessels that can be equipped with accommodation units and gangways to also serve the offshore renewable energy market.

The company is financing the fleet acquisition through a combination of debt and new equity. In connection with the fleet acquisition Oaktree Maritime & Transportation Fund, L.P., the company's largest lender and holder of warrantsfor 50 percent of the outstanding share capital, has decided to exercise warrants equal to 50 percent of the outstanding share capital. This will add NOK57.77 million in new equity to GEOS.

Guillaume Bayol, Managing Director at Oaktree commented: - Oaktree is excited to expandon the strong relationship with GEOS, and facilitate the acquisition of an attractive fleet of modern and versatile vessels. The Fleet Acquisition represents a transformative opportunity for GEOS to solidify its position as a preferred owner and operator of high-specification PSV’s, and puts the company in pole position to take advantage of a rapidly improving offshore market.

- Since partnering with GEOS in July 2022, Oaktree has focused on re-positioning the company as a provider of modern tonnage with the potential to serve both the offshore oil and gas and the offshore renewables market. The Fleet Acquisition represents the ideal transaction, and we are excited to formally partner up with GEOS through the exercise of the warrants and to continue building on a strong strategic relationship, added Fredrik Ulstein, Vice President at Oaktree and Board Member of GEOS.

The acquisition will be completed by September 2023 and completion is subject to certain third-party approvals.

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