Thule Commences Legal Proceedings Against QGM Group

Thule Drilling ASA confirms that it has commenced legal action against the foreign national shareholders of the QGM Group L.L.C. (QGM), a company registered in Dubai under license number 230018.

This follows QGM's decision to temporarily close its fabrication yard in the Hamriyah Free Zone, located in Sharjah UAE, ceasing operations on contracts on behalf of Thule Drilling, effective June 30, 2007.

The contracts relate to the reconstruction of a drilling rig called Thule Power and the construction of two other rigs called Thule Energy and Thule Force.

Proceedings being mounted under its agreements with QGM, include, but are not limited to, civil actions. It is Thule Drilling's intent to resolve the situation as quickly as possible and have the operations restored to normal working conditions.

Thule Drilling is claiming breach of contract and is pursuing its rights in Dubai, UK and Norwegian courts.