LOI Canceled for Proposed Buyer of SS Viking Century

On October 14, 2008, Viking Drilling informed that it had entered into a letter of intent (LOI) for the sale of the rig SS Viking Century subject to certain conditions. The proposed Buyer failed to meet these conditions and the LOI has been cancelled.

The Company will continue working with other private buyers to sell the SS Viking Century and the other Viking Drilling assets or sell the assets at an auction to be held at a later time when the financial market conditions have improved.