Paretos Oil and Offshore Conference

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Paretos Oil and Offshore Conference CEO Peter
K. Gjessing 30 Aug 2007
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Thule Drilling ASA

• Rig owning company based in Oslo, Norway
• Refurbishing and Constructing Jackup Drilling
  Rigs in Dubai
• Longterm Strategy is to build Jackup Rigs for
  hire to the oil majors

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• Thule Power specs
• Rebuilt and upgraded BMC 200-IC, to a 250 ft
  jackup rig
• 30,000 feet drilling capacity
• Variable deck load 2,045 tons
• Max. hook load 1.6 mill lbs
• 13-5/8" 10K BOP
• 2 x 2,540 HP 7,500 PSI mud pumps
• Quarters up to 108 people
• Automatic pipe handling
• National Oilwell Varco Drilling package

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• Thule Power status
• Tested/Completed
• All major structures
• Cantilever structure
• All hull and leg structures
• Jacking trials
• Inclination test
• Skidding system
• Main engines
• 70 of switchgear
• Hydraulic system
• High pressure system
• Commissioned
• Mud Pumps
• Drawworks

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• Thule Power Saudi Aramco Contract
• 4 year firm contract, with one year option
• Contract start end 2007
• Gross Dayrate USD 147,000
• Net Dayrate to Thule abt. USD 90,000
• Penalty from 1 March 2007
• Est. EBITDA contribution over the firm contract
  to Thule USD 108 mill
• Manager and Contractor KCA Deutag
• Due to the delay, Saudi Aramco has the right to
  terminate the Contract

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• Friede Goldman Super M2 Design
• Upgraded version of the L780 Mod II
• Proven design 30 units built (L780)
• 300 ft water depth w/fixation system
• 30,000 ft drilling depth capacity
• Accommodation 110 people
• 3,000 tons variable load
• 57 ft cantilever reach
• Suited for Middle East, Asia and W-Africa
• Expected Delivery

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Newbuilding Jackup Rigs Assembly site at QGMs
main yard in Sharjah, UAE
Thule Energy
Thule Force
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Thule Drilling marketing strategy newbuilding
Jackups

• Thule Energy Thule Force
• Objective Long term contract for one of the
  rigs in place within 1Q 2008
• Market target Middle East, Asia and West-Africa
• Joint market approach with KCA Deutag as one
  fully integrated Contractor
• The two rigs have been pre-qualified by several
  oil companies
• Thule Drilling also considers sale of one or both
  units

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QGM Dispute

• QGM closed the yard on 1 July 2007, claiming to
  be out of funds
• Thule Drilling, Noble Denton and all
  subcontractors were denied access to the yard
• Thule Drilling has made several attempts to
  settle the matter amicably, regretfully without
  success
• Thule Drilling has contractual right to take
  control over and complete the rigs with the
  present workforce, material and equipment of QGM
• In addition to the legal proceedings, Thule
  Drilling is working to resolve the matter with
  the assistance of the top management level of
  various administrative bodies in the UAE and
  through diplomatic channels
• Thule Drilling has good reasons to be confident
  that justice will prevail and that the dispute
  will be resolved in its favor

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Thule Drilling continues to be an attractive
investment case

• Cost and delivery are still competitive with
  comparable newbuilding jackups, even if Thule
  Drilling should suffer additional delays in
  connection with our current challenges with QGM
• "Thule Energy" and "Thule Force" are scheduled to
  be delivered to a market that is expected to
  remain promising, and at competitive prices for
  Thule Drilling
• QGM dispute Main goal is to get access to the
  yard and finalize the rigs
• Thule Drilling has a favorable balance sheet with
  around 50 equity