Petrojack Updates 1st Quarter Preliminary Update

Petrojack ASA was incorporated on October 4, 2004 by Larsen Oil & Gas. Larsen Oil & Gas is engaged as manager for Petrojack ASA.

Petrojack has two jack-up rigs under construction at Jurong Shipyard in Singapore. The jack-up rigs have an operating water depth capacity of 375 feet and drilling depth capacity of approximately 30,000 feet.

Petrojack's original construction program included four rigs. However, two rigs were sold to Maersk in Q3-2006, for a total consideration of US $420 million.

The rig price for the remaining two jack-up rigs are:

US $139.9 million (including PC-sum and financing) with 80% yard financing during the construction period. Delivery date is on or before January 15, 2008.

US $180 million (including PC-sum and financing). Delivery date is on or before December 2008. In August 2006, Petrojack invested in Petrolia Drilling ASA - Petrojack currently holds about 21.2% of Petrolia Drilling ASA. The investment is made to get exposure to the strong semi market, which has continued to develop positively during 2006/2007, with improving day rates and rig utilization. The utilization for semi's in UK is close to 90%, while the overall utilization is in excess of 95%.

Construction progress

There have been no significant lost time accidents, and the construction processes are developing according to schedule and on budget. Financial information

Income statement comments
Petrojack's net result for the 1st quarter of 2007 was equal to MNOK -17.1 before tax and MNOK -6.4 after tax. Similar figures for the 1st quarter of 2006 was MNOK -18.3.

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