Awilco Offshore Increases Stake in Offrig Drilling ASA

Awilco Offshore ASA has today, November 16, 2006, agreed to acquire 13,162,850 shares of Offrig Drilling ASA ("OFRD") at a price of NOK 25.50 per share against settlement in new shares of AWO to be issued at a price of NOK 60, corresponding to the closing price on 15 November 2006. The transaction will imply the issuance of 5,594,211 new shares of AWO within existing authorizations.

As a consequence of this acquisition and the shares previously owned, AWO will have an ownership of 69.2% in OFRD. AWO intends to give the remaining shareholders of OFRD the opportunity to swap their OFRD shares into new AWO shares at the same terms. Shareholders in OFRD who wish to swap their shares into AWO are requested to contact Fearnley Fonds ASA or Pareto Securities ASA who will assist AWO in this connection. A letter will also be sent to the shareholders of OFRD in this connection.