Wintershall exercised option for 'Energy Endeavor' jackup rig

Northern Offshore Ltd today reported that its subsidiary, Northern Offshore U.K. Ltd., has received notice that Wintershall Noordzee B.V. (“Wintershall”) is exercising the first of two six-month options for the jackup Energy Endeavour. The commencement date of the option period will be in direct continuation following the end of the well in progress on May 1, 2014, which commits the Energy Endeavour to Wintershall for continued operation in the Dutch sector of the North Sea through November 2014. This option exercise provides for an operating day rate of US$160,000 per day.

Maersk exercises option for 'Energy Enhancer'

Northern Offshore, Ltd. (NOF) today reported that its subsidiary, Northern Offshore U.K. Limited, has received a declaration from Maersk Olie og Gas AS (Maersk) exercising the second of three one-year options for the ‘Energy Enhancer’ jackup. The commencement date of the new option period is approximately mid-July 2014, which commits the ‘Energy Enhancer’ to Maersk for continued operation in the Danish Sector of the North Sea until July 2015. This option adds approximately US$52 million to the company’s contracted revenue backlog.

Jacky Field Well Operations

Ithaca Energy Inc. announces that the J03 well on the Jacky field ("the well") has been suspended having encountered a smaller than anticipated oil column in the Beatrice 'A'; Sand reservoir. Given the result of the well, technical work is ongoing to determine whether to re-enter the well and complete it as a water injector to maximise oil recovery from the Jacky field. Meanwhile, the drilling unit for the J03 well, Northern Enhancer, currently located over the Jacky platform, will commence a workover operation to replace downhole pumps in the J01 production well. This operation is estimated to last approximately 15 days.

Northern Offshore confirms Rosneft contract for 'Energy Endeavour'

Northern Offshore, Ltd. (NOF) today announced that the company has finalized a 2 ½ year contract with Rosneft Oil Company, in conjunction with North Atlantic Drilling Ltd. (NADL), for the provision of the jackup drilling rig ‘Energy Endeavour’. According to the agreement, any break rights expire after 100 days, after which the contract will commence in direct continuation upon the release of the rig by the current client. The company estimates the contract value to be in excess of USD150 million, exclusive of any mobilization fees. Gary W. Casswell, Northern Offshore’s president and CEO, said “This is an exciting opportunity for the company, and we are delighted that Rosneft has selected Northern Offshore and the Energy Endeavour for this program. We look forward to working with them and achieving a safe and successful drilling campaign.”

Northern Offshore Announces Rosneft Service Order Termination for Jackup Energy Endeavor

Northern Offshore, Ltd. (“Northern Offshore”) today announced North Atlantic Drilling Company Ltd (“NADL”) has received a cancellation notice for use of the Northern Offshore’s jackup Energy Endeavor from Rosneft Oil Company (“Rosneft”) as part of a multi-rig contract to provide drilling services in the Russian Artic commencing in the 2015 summer drilling season. Northern Offshore’s President and CEO Gary Casswell said, “While not unexpected, we are disappointed by this development but will nevertheless continue to pursue future opportunities in this region by leveraging our previous experience drilling in the Russian Artic.”

Northern Offshore set to be combined with Blue Ocean Drilling

The boards of directors of Northern Offshore, Ltd. (“NOF”) and Shandong Offshore International Company Limited (“Purchaser”) are pleased to announce that they have reached agreement on the terms of a recommended cash acquisition of NOF by Shandong Offshore Company Limited (“Bidco”), a wholly owned subsidiary of the Purchaser (“Acquisition”). The Acquisition will be implemented by way of an amalgamation (“Amalgamation”) under Bermuda law at an acquisition price of NOK7.59 per NOF share, payable in cash (“Acquisition Price”). The Acquisition Price values NOF’s issued share capital at approximately NOK1.3 billion. The Acquisition is expected to become effective during the first half of August 2015. At the time at which the Amalgamation becomes effective, each NOF share (other than NOF shares held by the Purchaser, Bidco, any other subsidiary of the Purchaser or any subsidiary of NOF, if any) will be converted into the right to receive the Acquisition Price. The board of directors of NOF unanimously recommends that NOF shareholders vote to approve the Acquisition at the SGM. Commenting on the Acquisition, Yu Bing, Director of the Purchaser and Dr. Sun Yuanhui, Chairman of Blue Ocean Drilling Limited, said: “The acquisition of Northern Offshore Ltd. is a positive step in our vision of building a high-performing offshore drilling organization to meet the current and future needs of the Global E&P sector. By retaining the NOF leadership team, when combined with our Blue Ocean Drilling leadership, we will have assembled a highly skilled and experienced team to direct and execute on our strategies as the new Northern Offshore Ltd. going forward. NOF provides proven operating and safety systems, a respected and proven operating organization with an established presence in the North Sea and Asia Pacific, well maintained assets and the most important asset - quality people to execute our strategy. Enhancement of the new NOF fleet is already underway with the combined NOF and Blue Ocean Drilling new–builds; six (6) high specification, deepwater jackups due to be delivered in 2016 through 2018, which will make the new NOF an attractive partner to those E&P companies looking for premium, high specification assets operated by a proven organization whose focus is operations and efficiencies that can contribute to lowering their clients total well costs. We’ll continue to evaluate and act upon further opportunities which meet the technical and financial criteria of the new Northern Offshore Ltd. as we examine ways to further enhance our fleet in an accretive manner.” Commenting on the Acquisition, Gary W. Casswell, President and CEO of NOF said: “This transaction represents a major milestone in Northern Offshore’s previously stated strategy to transform our company to a niche, premium jackup drilling contractor with new, state of the art assets. With the exception of the Norwegian continental shelf, NOF will be able to operate in all major petroleum resource regions around the world. Combining the four (4) under construction high spec jackups of Blue Ocean Drilling with Northern Offshore’s two (2) under construction state of the art jackups with deliveries in 2016 thru early 2018, we will realize organizational synergies and have the opportunity to build additional critical mass in our current operations in the North Sea and Asia Pacific as well as position us to pursue new clients in new areas. Going forward, with the support of our new Board of Directors, we will be opportunistic while remaining fiscally responsible to continue growing the company with the selective acquisition or new construction of additional premium jackup assets. Finally, I would like to acknowledge and express our sincere appreciation for the loyalty and support of all of our past and present shareholders who have helped us reach this new beginning.”

PETRODEC ERDA CONVERSION

Over twelve months Petrodec successfully reactivated and converted a stacked drilling rig into a powerful and versatile multi-purpose decommissioning unit.