1. Presentation Pareto seminar

2. Status Petrolia Drilling

3. 3 Key events 2004-2005  Petrolia Drilling has during 2004 refinanced its balance sheet  Debt equal to NOK 113 mill is converted to shares/bonds at a price of NOK 0,55  Banks wrote off NOK 42 mill,and the companys total debt was reduced with approx NOK 250 mill during 2004  New bond loan obtained in Dec 2004 Nok 100 million  The market is improving and Petrolia Drilling has agreed BB with Gazflot for use of SS Petrolia

4. 4 Operational targets  Near term goal  Good timing for contract with Gazflot.  Secure further utilization for SS Petrolia.  Strong demand from oilcompanies  Conclude legal issue Valentin Shashin  Longer term goal  Evaluate and conclude new investment opportunities

5. Market development

6. 6 Strong underlying fundamentals  Energy demand and offshore market fundamentals are favorable and improving  Oil demand growing 2 – 3% per year; crude oil prices have improved by 250% since beginning of 2000  Deep water drilling is fastest growing area of rig demand within offshore sector  Offshore production expected to increase 6% per year  Utilization of floaters world wide is near 85%.

7. 7 Utilization is improving Total supply of drilling units is 569, where of 451 is on contract giving 79 per cent utilization rate  Floaters  Utilization 87 per cent, against 82 per cent last month  Jack-ups:  Utilization 92 per cent, against 88 per cent last month Source: R.S Platou

8. 8 Expected global rig utilization – per segment Source: The Offshore Rig Monthly, ODS-Petrodata, May 2003 0 % 20 % 40 % 60 % 80 % 100 % JackupsSemisDrillships Utilization – all unitsUtilization – markeded units

9. 9 Why is demand expected to increase?  Oil companies need to increase proven reserves  High oil price leads to more test production over time  China needs more energy to keep up growth  In December 2003 China imported 80% more oil than in December 2002  Growth is expected to continue

10. 10 Stock market and shareholders demand replacement of reserves Lower reserves  lower values Declining R/P-rate (1980-2002) Global R/P-rate (1980-2002) 0 10 20 30 40 50 808284868890929496980002

11. Drilling units

12. 12 Market opportunities SS Petrolia Upgraded, 2. generation semi-rigg  Build: 1976 / upgraded 1995  Capacity: 1.200 feet  DnV class  Laid up in Invergordon (Scotland)  Opex. USD 7.500 per day  BB with Gazflot in Barents Sea Value assumptions  Booked value: MNOK 59 (ca. MUSD 15,0).  Favourable market development  Estimated market value is USD 30-40

13. 13 Value development SS Petrolia All estimates are based on historical development in market values from independent offshore brokers. Estimated value development MUSD 0 10 20 30 40 50 1999200020012002200320042005

14. 14 SS Petrolia contract  Letter of Intent with Gazflot  Stockman-field  Contractterms nearly concluded,will be announced when concluded

15. 15 Market opportunities DS Valentin Shashin  Upgraded drillship  Build: 1983 / upgraded 1998  Capacity: 4.500 feet  DnV class  Laid up outside Buenos Aires, Argentina  Opex. USD 7.500 per day  Ongoing arbitration in London concerning disputes with owners Arktikmorneftegazrazvedka  The company is waiting for final ruling arbitraton process  Booked value, MNOK 269 (ca. MUSD 38)  Estimated market value per December 2003 was MUSD 60-80

16. 16 Value development DS Valentin Shashin. All estimates are based on historical development in market values from independent offshore brokers. Verdiutvikling 1 Estimated value development MUSD 0 20 40 60 80 100 120 140 160 199819992000200120022003

17. Financials

18. Q3 2004 - Group Result

19. 19 Q3 2004 - Group Result Key figures

20. Q3 2004 - Group Balance (1/2)

21. Q3 2004 - Group Balance (2/2)

22. 22 Balance Sheet changes during Q4  Placement of new NOK 100 million bond loan  Conversion of existing bond loans in borrowers option  approx NOK 40 mill converted in 4th Q  NOK 64,6 mill (remains)  NOK 37.03 mill (remains)  NOK 16.24 mill (remains)  NOK 6.35 mill (remains)

23. Concluding remarks

24. 24 Going forward  Strengthened financial position  Increased market interest in both vessels