Sevan Completes Private Placement

Sevan Marine ASA on Tuesday completed a private placement resulting in the company's board approving the sale of 14.6 million shares at a subscription price of NOK 50.75 per share, raising gross proceeds of NOK 740 million.

The proceeds of the transaction will be used to partly finance Sevan Marine's construction program. The company currently has three Sevan production units and one Sevan drilling unit under construction. It recently ordered two additional production units; one Sevan 300 and one Sevan 650.

In accordance with the proxy established at Sevan's General Meeting held on May 4, 2006, the company`s board of directors resolved to issue 14.6 million new shares, each at a par value of NOK 0.20, representing approximately 10% of the registered share capital.

Shares offered in the private placement will comprise already-listed shares made available to the managers by existing shareholders based on a stock lending agreement between the managers and the lenders. All shares offered in the private placement are tradable immediately after delivery to the investors.

The private placement was managed by Pareto Securities and SEB Enskilda.

Concurrent with the private placement, primary insiders sold 830,000 secondary shares at NOK 50.75 each, representing approx. 5.8% of these shareholders` holdings, as follows:

--Jan Erik Tveteraas, CEO: 222,944 shares. After this Mr. Tveteraas owns 3,000,000 shares.
--Arne Smedal, Director: 236,484 shares. After this Mr. Smedal owns 6,600,000 shares.
--Kare Syvertsen, VP Director Technology: 229,536 shares. After this Mr. Syvertsen owns 3,300,000 shares.
--Egil Kvannli, CFO: 18,000 shares. He also exercised 33,333 share options at NOK 9.80. After this he owns 35,333 shares and 16,667 share options.
--Erling Ronglan, VP Operations: 20,000 shares. He also exercised 16,667 share options at NOK 16.90. After this, Mr. Ronglan owns 23,000 shares and 16,667 share options.
--Aslak Hjelde, Managing director Kanfa AS: 100,000 shares. After this, Mr. Hjelde owns 478,246 shares and 50,000 share options. Sevan Marine ASA is a Norwegian company listed on the Oslo Bors with its own unique technology for floating production, storage and drilling. Sevan's technology is developed for applications in offshore oil and gas field developments. The cylindrical hull form has a significant competitive edge when compared to traditional type floaters. Sevan Marine has offices in Tananger, Arendal, Asker and Trondheim, Norway; Singapore; and Rio de Janeiro, Brazil.