Ocean Rig Enjoys Record-High Day Rates

Ocean Rig is celebrating record high day rates of USD 637,000 from new contract and significant reductions in interest costs going forward as result of refinancing. A costly and time consuming class-work and upgrade project has been completed.

Revenue for the 4th quarter 2007 was USD 41.3 million, decreasing from USD 67.3 million in the 3rd quarter 2007, mainly due 61 days yard stay for Leiv Eiriksson, preparing for the North Sea contract with Shell. Operating expenses of USD 33.0 million, increased by USD 1.0 million from 3rd quarter 2007. EBITDA was USD 8.3 million for the quarter, down from USD 35.3 million in the 3rd quarter 2007.

CEO, Trygve Arnesen said: "We are pleased to see that the drilling market is developing according to our expectations with regards to day rates and in line with what we have communicated to the market. Following the Letter of Award for Eirik Raude, there are no "warm" ultra-deep water rigs available in 2008. For 2009 there are only two "warm" rigs with minimum 7,500 feet water depth drilling capability available for hire, including Ocean Rig's Leiv Eiriksson. Four new-build ultra-deep water rigs that are not yet contracted are scheduled to be delivered in 2008 and 2009. Due to the volume of tenders for rigs in 2008 and 2009, rigs available in those years could attract significant premiums on day rates compared to contracts for start-up in 2010 or later."

Ocean Rig owns and operates two of the world's largest and most modern drilling rigs, built for ultra deep waters and extreme weather conditions. The units are currently operating in the US Gulf of Mexico and in the North Sea.

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