First Wave Settles Dispute with Crest Petroleum

First Wave Marine has settled a dispute relating to monies due First Wave's subsidiary, Newpark Shipbuilding, for work performed on the drilling rig Teknik Hidayat, formerly known as Pan Producer. The settlement in the amount of US $8,569,900 was paid to First Wave by Crest Petroleum Bhd, a Malaysian company. The parties have filed motions for dismissal of the pending arbitration proceedings and the case pending in U.S. District Court in Galveston against Crest Petroleum, related parties and the drilling rig.

In June 2002, the Company announced a contract for conversion of the Teknik Hidayat, to a self-erecting tender-assist rig. In January 2003, the Company announced that it had discontinued work on the rig and that it had terminated the contract due to a payment dispute with the owner of the rig. The Company is not aware of any immediate plans to restart the work on the Teknik Hidayat, which is currently moored at the Company's East Pelican facility.