Eastern Drilling to Initiate Directed Share Issue

The Board of Directors of Eastern Drilling ASA resolved in a board meeting June 27, 2006 to do a private placement of up to 2,000,000 new shares at a subscription price of NOK 90 per share, which gives an issue amount of up to NOK 180 million.

The private placement is directed at shareholders in the company per June 7, 2006, who were not given the opportunity to subscribe for shares in the private placement which were placed on this date.