Valaris announces new contract backlog of approximately $65M

Valaris Limited (VAL) announced new contracts and contract extensions, with associated contract backlog of approximately $65M, awarded subsequent to issuing the Company’s most recent fleet status report on August 1. Contract backlog excludes lump sum payments such as mobilization fees and capital reimbursements. One-well contract with BP (BP) offshore Brazil for drillship VALARIS DS-15. The contract is expected to commence in late first quarter or early second quarter 2024 in direct continuation of the rig’s current program, with TotalEnergies, and has an estimated duration of 80 days. The estimated contract value is approximately $33M and excludes payments we will receive for mobilization and any additional services. A previously disclosed exercised priced option with TotalEnergies offshore Brazil for drillship VALARIS DS-15 is now expected to be undertaken in direct continuation of the aforementioned BP contract. The option period is expected to commence in late second quarter or early third quarter 2024 and has an estimated duration of 100 days. The operating day rate for the option period is approximately $254,000. The contract backlog for this previously disclosed contract is not included in the $65 million of additional backlog mentioned above. VALARIS DS-15 – Estimated Schedule: Customer Location Contract Start Date Contract End Date(1) Day Rate(2) Total Energies Brazil Jun 21 Feb 24 BP Brazil Mar 24 May 24 $410,000 TotalEnergies Brazil Jun 24 Sep 24 $254,000 Five-well priced option exercised by BP Indonesia for heavy duty modern jackup VALARIS 106. The option period is expected to commence in January 2024, in direct continuation of the existing firm program and has an estimated duration of 365 days. The operating day rate is $85,000 effective from January 6, 2024, increasing to $95,000 from January 6, 2025. As previously disclosed, the rig is expected to be out of service for approximately 90 days for planned maintenance across second quarter and third quarter 2024. (1) Contract duration does not include any unexercised optional extensions. Contract end dates can vary based on how long it takes to complete the wells subject to the contract. (2) Day rates are reported to the nearest thousand and reflect the operating day rates charged to customers, excluding certain types of non-recurring revenues such as lump sum mobilization payments. Day rates are provided unless such disclosures are restricted by confidentiality provisions