Thule Sells Newbuilding Rigs to UAE-Based Royal Oyster Group

Thule Power
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Thule has announced the sale of its interest in QGM BVI and its two rigs Thule Energy and Thule Force for a total sum of US $275 million to Royal Oyster Group in Dubai, United Arab Emirates. The sale is based on a monthly installment sale over the next two years. Thule is not financially responsible for the completion of the two rigs. Royal Oyster has further agreed that Thule is entitled to a 30% profit split in case they resell any of the rigs and/or the yard within two years.

In a previous and related acquisition in 2008, Royal Oyster Group acquired Dragon Offshore, an engineering company with offices inside the QGM yard. Dragon Engineering has been responsible for engineering services related to the rebuilding of Thule Power and the design and construction of Thule Energy and Thule Force. During the past few months, Royal Oyster has spent substantial capital and human resources on upgrading and refurbishing Dragon Engineering as well as that of the general infrastructure at QGM.

Sale of Thule Power

Thule is pleased to announce the sale of Thule Power for US $140 million to Royal Oyster Group in Dubai. Upon delivery of the rig, Thule will receive US $10 million per month for 14 months. In connection with the sale of Thule Power, Thule has reached an agreement with the previous buyer to cancel the sales agreement without any cancellation fee associated with the delayed release of the rig from the QGM yard and subsequent delayed completion date of the rig from the MIS yard.

Sale of Thule Phoenix

Thule is pleased to announce the sale of Thule Phoenix for US $5 million in cash on delivery to Royal Oyster Group in Dubai. The rig will be delivered in 1Q 2009 and the sale is on an "as is - where is" basis.

All the above agreements are subject to Thule's board approval.

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