Energy Searcher Wins Contract from Vietgazprom

Northern Offshore

Northern Offshore's Singapore-based subsidiary, Jet Holding Ltd. was awarded a contract with the Joint Operating Company Vietgazprom, a joint venture between Petrovietnam and Gazprom, for the drillship Energy Searcher. The five well contract is expected to begin between June and September, 2009 and run approximately 365 days, inclusive of a mobilization period. The estimated contract value is approximately US $122 million, which is comprised of US $116 million during the drilling period and US $6 million in mobilization and demobilization fees. The Energy Searcher, currently located in Singapore, concluded its last contract offshore Indonesia in late June 2008 and is available for interim work.

Marion Woolie, Northern Offshore president and CEO, said, "Although this term contract doesn't begin until mid-2009, it is an important step in expanding our revenue backlog. We are continuing to pursue several opportunities to fill in with shorter term work in front of the Vietgazprom program."