Northern Offshore Funds $18.1MM Commercial Paper Maturity

Northern Offshore has funded the principal and interest due for the maturity of its NOK 125 million (US $18.1 million) commercial paper issue on December 12, 2008.

Michael Dawson, Northern Offshore Senior Vice President and Chief Financial Officer, said, "We are aware that there is concern in the capital markets about companies meeting their near-term debt maturities. Northern Offshore has taken a number of steps to strengthen its near-term liquidity position."

Northern Offshore recently reached an agreement with a key customer to reduce the company's performance bond requirements by US $30 million. This, in turn, reduces the amount of collateral necessary to support the company's bonding facility and frees cash that otherwise would be restricted. Additionally, the company negotiated and received a deposit from another key customer in advance of a major 2009 drilling program.