Global Energy Development (GED) has entered into two share purchase agreements to acquire a total of 11 offshore subsea service vessels, and a barge vessel, as it seeks to adopt a new business strategy focusing on the subsea oilfield services sector.
The deal, which includes other related equipment, will be through the purchase of 100% of the issued shares in vessel-owning companies.
All vessels are currently located in Louisiana with direct access to the offshore oil and gas fields in the Gulf of Mexico.
The acquisitions will mark a fundamental change in GED’s business strategy as these transactions are the company's first step into the global subsea industry. The company seeks to make counter-cyclical investments within the global subsea industry that will enable it to capitalize on future recoveries in the oil price and related increased requirements for offshore support services.
Vessels will be able to operate in depths of up to 300ft and, in the case of one vessel up to 5000ft, opening a large addressable market for the company.
The company signed a conditional agreement to acquire three vessels from Everest Hill Group Inc. through the purchase of all of the issued shares in three vessel-owning companies. The consideration for these vessels will comprise of US$8 million upfront, which shall be satisfied through the forgiveness of $8 million of the principal amount of the existing $12 million secured loan note agreement.
Under the next agreement, Global will acquire eight vessels, a barge vessel, and other equipment, from McLarty Capital Partners, Caleura Ltd. and Mr. Alan Quasha, which Global will issue $10.5 million worth of convertible loans.
GED has also put up a proposal to change its name to Nautilus Marine Services PLC to reflect its new business strategy, and has appointed John Payne as director of operations.
Chairman Mikel Faulkner said: "We are very pleased to have committed to these acquisitions of the offshore service vessels in the Gulf of Mexico. This represents the company's first step towards delivering on the company's new strategy of increasing shareholder value by targeting investment and acquisition opportunities in the subsea services sector with the potential for significant upside.
"We are also delighted to welcome someone of John's experience to the Global management team. He is a good strategic fit for the business and his knowledge and experience will be of immense benefit as we embark on this new business strategy, especially considering his long and successful track record in the off-shore energy marine sector."
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