Thule Drilling Successfully Completes Bond Placement

Thule Drilling ASA

Thule Drilling ASA says the placement of a US $130 million bond financing was successfully completed yesterday by Fearnley Fonds.

The main terms and conditions are as follows:

Coupon: 12 % p. a. payable semi-annually
Maturity: 3 years
Security: 1st Priority Mortgage in the jack-ups "Thule Power", "Thule Energy" and "Thule Force", with the right to replace the 1st priority security in "Thule Power" with a loan facility of up to US $75 million following the delivery of "Thule Power" to the Saudi Aramco Contract.

The purpose of the loan is to repay the existing NOK 250 million (about US $40 million) bond loan on "Thule Power" and use the balance on the two newbuildings "Thule Energy" and "Thule Force".

The Company is also in the final stages of negotiations with an international bank to finance the remaining US $75 million to complete the two newbuildings under construction. Based on this, Thule Drilling ASA will be fully financed with a US $205 million combined bond and bank loan for its four assets (including the semi- submersible bare-deck "Thule Phoenix"). The total invested value is about US $400 million and total estimated market value is US $550-600 million when the rigs under construction are completed.

Thule Drilling is also pleased to inform that the reconstruction of "Thule Power" is progressing according to schedule for delivery end of January 2007 on the four + one year contract with Saudi Aramco, that gives a capital contribution (EBITDA) of US $130 million over the fixed period.