Ocean Rig Reports Second Quarter Results

Ocean Rig reports EBITDA for the 2nd quarter was US $1.6 million. The accounts for the quarter were negatively affected by the full write off of the Weymouth exploration cost of US 22.6 million and Leiv Eiriksson being idle between March 26th and June 30th.

During the quarter, Ocean Rig announced 4 new drilling contracts at record day rate levels, representing approximately US $117 million in contract value and employment for Eirik Raude through 2005.

EBITDA for the second quarter was US $1.6 million (US $13.7 million), operating profit was US $-33.1 million (US $3.3 million) and net profit was US $-47.6 million (US $-8.3 million.) The reduced result in the 2nd quarter is mainly due to a full write off of $ 22.6 million of exploration cost of the Weymouth well and Leiv Eiriksson being idle during the quarter.

The Executive Chairman said: "Despite some short term challenges in Angola, the contract awards during the 2nd quarter reflects a tightening market for our services. The future demand for drilling continues to build up strongly."

Since the end of the quarter, both rigs have completed drilling contracts for Repsol on Cuba and ExxonMobil offshore Angola. Ocean Rig remains optimistic that increasing activity in exploration drilling and new development programs will continue to strengthen the market for high specification drilling units.

Ocean Rig owns and operates two of the world's largest and most modern drilling-rigs, built for ultra deep waters and extreme weather conditions. One unit is currently operating in Angola and the other unit is in transit to West of Shetland.