Ocean Rig Reports Third Quarter Results

The 3rd quarter was a transitional quarter for Ocean Rig. The company has repositioned Eirik Raude to Norway, entered into new contracts at record high day rates and refinanced short term debt. As a result, the company will be in a stronger position going forward with better margins, improved earnings visibility and no major debt maturities before 2008.

The 3rd quarter accounts are affected by lower revenue during a 68 days off hire period between contracts for Leiv Eiriksson in Angola and 37 days relocation of Eirik Raude from Canada to Norway, in addition to higher operational costs resulting from non-recurring relocation costs and other non-recurring adjustments. Of the total $ 13.7 million in mobilization fees that have been agreed with clients for mobilizing the rigs, only $ 2 million has been recognized as revenue in the quarter.

EBITDA for the second quarter was USD -2.0 million (USD 13.3 mill), the operating result was USD -13.7 million (USD 3.3 mill) and net result was USD -25.2 million (USD 6.9 mill).

Since the end of the quarter, Leiv Eiriksson has commenced drilling under a contract with BP Angola. Eirik Raude is in the final stage of the upgrade project in preparation for the Barents Sea program for Statoil and Norsk Hydro.

The Executive Chairman, Geir Aune said: "We are almost through a transition that will allow the company to enjoy the results of good medium term contracts and benefit from the continuing improving market for our services."