Saudi Aramco Terminates Thule Power Drilling Contract

On 3 December 2007, Saudi Aramco gave notice to KCA Deutag of its intention to terminate the Thule Power drilling contract on 25 December 2007.

KCA Deutag notified Thule Drilling that Saudi Aramco, in a letter dated 7 January 2008, has terminated the contract as of 25 December 2007.

Thule understands and respects Saudi Aramco's decision and regrets the unfortunate circumstances around Thule's situation which lies outside of Saudi Aramco's and Thule's control.

The termination of the contract does not affect the sale of Chekovo Ltd. (owning company of Thule Power).