Scorpion Offshore Contemplates Private Placement

With its recent public announcements, Scorpion Offshore Ltd. has increased its revenue backlog to approximately US $300 million, representing almost 47% of its equity market capitalization.

After taking these awards into account, Scorpion has three further ultra premium jackups being delivered in the second quarter 2008, fourth quarter 2008 and second quarter 2009. In addition, Scorpion has options to construct an additional four ultra premium jackups at Lamprell in Dubai through 2010.

In order to finance such growth opportunities and to finance the upgrading of Scorpion's third and fourth rigs for international operations, Scorpion's Board of Directors has decided to raise approximately US $50 million, including US $4 million in working capital, in new equity through a private placement of approximately four million shares.

The offering, to be led by Fearnley Fonds ASA, will be carried out through a book-building process and is expected to be closed before opening of the Oslo Stock Exchange on July 25, 2007.

Scorpion Offshore Ltd. is a Bermuda based corporation founded in 2005 to own and operate state-of-the-art offshore drilling rigs.