DeepOcean Purchases Vessel, Completes Private Placement

DeepOcean ASA (DeepOcean) has entered into a letter of intent with Solstad Offshore ASA for the purchase of the construction service vessel "Bold Endeavour" at a price of NOK 450 million. The vessel is presently in operation for DeepOcean in Mexico under a contract with Diavaz.

The vessel was built in 1999, has a length of 129m, a width of 22m, a 1.600 m2 working deck and is equipped with DP class 2.

The purchase will be financed through a private placement and a bank facility. DeepOcean has on 2 November 2006 completed a private placement resulting in the issue of a total of 12.5 million new shares to a price of NOK 24 per share. Gross proceeds from the private placement amounted to NOK 300 million. The Board is please to announce that the Private Placement was substantially oversubscribed.

The private placement was managed by Pareto Securities ASA and SEB Enskilda ASA (the "Managers").

The issued share capital of DeepOcean after the private placement will be NOK 44,073,546.50 equaling 88,147,093 shares, each with a par value of NOK 0.5.

Contract notes will be sent out today. Payment date is set to 8 November 2006. The shares offered in the private placement comprise of already listed shares made available by a Stock Lending Agreement between the Managers and (i) West Supply IV AS and ii) Solstad Rederi AS. No consideration is paid under the Stock Lending Agreement. The shares delivered to the investors will be tradable from the date they are delivered.

The borrowed shares will be returned on or about 16 November by the issue of new shares under an authorization granted to the Board of Directors of DeepOcean. The new shares will be listed on Oslo Stock Exchange following approval of a prospectus.

The Managers will in the interim period prior to the redelivery of the borrowed shares control 16.5 % of the share capital of DeepOcean.