Northern Offshore Awarded Contract for Energy Exerter

Northern Offshore Ltd. announced that the Energy Exerter, a 300ft jackup drilling rig, was awarded a contract with a large international oil and gas company, subject to certain governmental approvals. The drilling contract is expected to begin in May, 2008 and run approximately 152 days. The estimated contract value is approximately US$ 40 million. The Energy Exerter is currently operating in the Danish Sector of the North Sea and is one of three rigs acquired by affiliates of Northern Offshore in 2007.

Marion Woolie, Northern Offshore president and CEO, said "This is a terrific opportunity for Northern Offshore and we are extremely pleased to have been chosen for this important project."

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