Thule Clarifies Reasons for Thule Power Delivery Delay

Reference is made to our press release of January 17, 2007 "Status of completion of jack-up Thule Power".

In that press release we stated that one of the reasons for the delay of delivery of the rig was "mechanical breakdown during jacking operations at Dubai Drydocks ("DD") of two of the jacking gears". We also stated that "..progress made while at DD was disappointing as leakage was found on all three spud cans produced by DD".

Thule Drilling wishes to clarify that DD did not cause the damage to the jacking gears and DD was not responsible for the jacking operations or any delays. Thule Drilling is very satisfied with the work done by DD in relation to assembling, completion and installation of the legs on the rig, and the work scope was completed in a timely manner within contractual obligations and timescales.

Thule Drilling apologizes for any inconveniences DD has experienced due to possible misunderstandings of the said press release.

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