Northern Offshore, Ltd. (the "Company") (Oslo Bors: NOF.OL) announces that on January 2, 2015 it issued a Notice of Contract Termination to Oceanic Consultants Nigeria Ltd. (Oceanic), an affiliate of Houston, Texas based CAMAC Energy Inc. (CAMAC) for the Energy Searcher drilling contract. CAMAC guaranteed Oceanic's obligations under the drilling contract.
The Company believes that Oceanic breached various terms of the drilling contract and will be filing a claim for in excess of $50 million associated with this matter pursuant to the arbitration provisions of the contract.
The Company hopes to have the rig demobilized out of Nigeria by late January.
