PetroMENA Releases Preliminary Results for 1Q07

PetroMENA ASA was incorporated on January 7, 2005 by Larsen Oil & Gas AS. Larsen Oil & Gas is engaged as manager for PetroMENA.

PetroMENA has entered into EPC contracts with Jurong Shipyard for the construction of three 6th generation semi-submersible drilling rigs. The semi rigs have operating water depth capacity of 7,500 - 10,000 ft. The units will thus meet design criteria for operation in areas such as Gulf of Mexico (GoM), Brazil and West Africa. All rigs will be equipped for harsh environment operations, but will initially not be designed for arctic operations. The rigs are scheduled for delivery in January 2009 (PetroRig I), September 2009 (PetroRig II) and January 2010 (PetroRig III)) respectively.

PetroMENA was listed on Oslo Axess on May 23, 2007 under the trading symbol "PMENA".

Construction progress
There have been no lost time accidents on the planning and construction of the rigs and the projects on budget and slightly ahead of the original rime schedule.
Contract situation
PetroMENA has secured long-term drilling contracts with Petrobras America Inc. for PetroRig I and with Petroleo Brasileiro S.A for PetroRig II. The gross values of the contracts are estimated to approximately US $700 million for PetroRig I and US $645 million for PetroRig II, excluding options and possible bonus. The contracts will commence upon delivery of the rigs from the Jurong Shipyard. PetroRig III will be marketed world-wide for possible long-term contracts.

Financial information
The net result for the first quarter 2007 was negative with MNOK -21.7, compared to MNOK -10.6 in Q1 2006.