Northern Offshore Completes Equity Issue

Northern Offshore, Ltd. (Norwegian OTC: "NOFL")has on June 7, 2007 completed a directed share issue of 9.1 million shares at a subscription price of NOK 33 per share. Gross proceeds from the equity issue amounts to NOK 300 million or approximately US $50 million.

The purpose of the share issue is to strengthen the company's equity in connection with its acquisition of three jackups, as recently announced, and for general corporate purposes. The issued share capital of Northern Offshore after the directed share issue will be US $38,274,995 being made up of 153,099,980 shares of US $0.25 par value.

Confirmation of allocations related to the share issue will be distributed on June 8, 2007. Payment is set to June 13, 2007. The subscribers will be delivered existing and unencumbered shares in the Company pursuant to a Stock Lending Agreement entered into between the managers and Geveren Trading Co. Ltd. The shares delivered to the subscribers will be tradeable from the date they are delivered.

The share issue was managed by Fearnley Fonds ASA and Pareto Securities ASA.