Viking Drilling Issues Bond

Viking Drilling ASA has issued a senior secured bond in the total amount equivalent to approximately US $80 million. The loan is divided into two tranches of approximately US $50 million and approximately NOK 200 million.

The proceeds from the issue will be used to finance the reactivation and outfitting of the drilling rig Viking Producer in Galveston, Texas.

The bond will carry a coupon of 3 month LIBOR+ 6.5% p.a. for the USD tranche and a 3 month NIBOR+ 6.5% p.a. for the NOK tranche. The duration will be 5 years, with options for Viking Drilling to call the loan earlier. The loan will amortize with 20% at the end of year three, 20% end year four and 60% end year five. The loan will b secured by a first priority mortgage over the three rigs Viking Producer, Viking Century and Viking Prospector, included equipment to be installed.

The bond issue is subject to finalization of loan documentation. Settlement is expected on or around October 5, 2006.

The bond issue was managed by Pareto Securities ASA.

Viking Drilling issued Us $83 million of equity in May 2006 at NOK 10.00 per share. The drilling rig market has strengthened significantly since the equity issue.

The board of directors of Viking Drilling ASA is pleased to see the positive response from both Norwegian and international institutional bond investors.