SKDP Receives Subscriptions for over 4MM New Shares

Skeie Drilling & Production ASA

Reference is made to the prospectus dated October 9, 2008 regarding the rights offering in Skeie Drilling & Production ASA ("SKDP") of a total of 9,000,000 new shares to a subscription price of NOK 20 per new share. The subscription period for the rights offering expired at 16:30 CET on Friday, October 24, 2008. SKDP has received subscriptions for a total of 4,823,369 new shares to the subscription price of NOK 20 per share.

The Rights Offering was fully underwritten by a consortium consisting of two of the major shareholders in the Company.

The board of directors of SKDP will resolve the allocation in a board meeting to be held October 29, 2008. Distribution of allocation letters will take place on or about October 29, 2008 and debit of the subscriber's bank accounts will take place on October 31, 2008. The new shares will be registered on each subscribers' VPS account as soon as the share capital increase is fully paid and registered in the Norwegian Registry of Business Enterprises (Bronnoysund registrene), expected on or about November 7, 2008.

The share capital in SKDP will, as a consequence, be increased with a total of NOK 90,000,000 to NOK 771,100,000 divided into 77,110,000 shares each with a nominal value of NOK 10.00.

The Rights Offering was managed by Pareto Securities AS.