Eirik Raude Fit For Work

Ocean Rig announces that Det Norske Veritas has issued a declaration saying that they are ready to issue the Certificate of Fitness for Eirik Raude, the Company's second ultra-deep water semisubmersible drilling rig, for drilling offshore East Coast of Canada. It is expected that Canadian Authorities will confirm their approval shortly.

Eirik Raude Further, it is expected that EnCana will take delivery of Eirik Raude under the previously announced EnCana drilling contract by October 31, 2002.

Ocean Rig advises that a disagreement developed between Irving Shipbuilding and Ocean Rig in connection with the finalization of Eirik Raude. In this connection the Yard has placed a lien on the rig to secure their interests. The disagreement related principally to the terms of a deferred payment agreement between Irving Shipbuilding and Ocean Rig. The issues have now been resolved and the parties have reached an agreement as to the lifting of the liens and the satisfaction of the debt to Irving Shipbuilding.

On delivery to EnCana, Ocean Rig will receive US $15 million from EnCana as payment for the winterization of the rig. In addition, the Company will have US $10 million released from cash deposit with lenders. Also, subject to the Independent Subscription Rights being exercised in full, the company will shortly receive an additional US $25 million in new equity.


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