I wouldn't be too sure if parent co, Umw Hldgs was dumping Umwog. Despite what the Umw Hldgs ceo said, corp exercise did look like a Pnb's move. Pnb has cash to create and sustain a fresh o&g group, and it was also to facilitate Ekuinas to exit Icon.

Maybe it's time to go in. If all rigs are employed, results won't be in until 2018. If PNB undertakes to take up all rights issue, it means umwog will be debt free after rights issues exercise in Q4 2017 and will no longer have to bear huge borrowing costs. Net operating income will rise dramatically. You need to be more careful with the assumption that umwog rigs are still unemployed, as this might be no longer be true.

One of the key thing about rights issue, is that umwog will soon substantially reduce its gearing. Yes, low charter rates still need further improvements, but umwog can keep more cash from no longer paying the banks.

If 'target ex-price' TERP is 39.5sen, the calculation of which is based on pre-announcement average market price of 66sen, then how would anyone buy now at above 66sen?

Must subscribe to rights share first. I think price will move after the rights issue is done.
Prices may actually move above the targeted 39.5sen; if all the rigs are employed. And hopefully the loans will be retired using the proceeds from the rights issue.
The warrants will be useful too.