Petrojack, Saipem Agree on Sale and Purchase of Petrojack II Rig

Reference is made to the notice from the bondholders meetings on November 19, 2008 in all of Petrojack ASA's three bond loans with ISIN NO 001031832.2, ISIN NO 001031831.4 and ISIN NO 001036291.6.

The Company's subsidiary Petrojack II Pte Ltd has now signed a sale and purchase agreement with Saipem (Portugal) Comercio Maritimo S.U. LDA (Saipem) regarding sale of the Subsidiary's jackup drilling rig Petrojack II to Saipem. The two parties have agreed on a purchase price of US $199,125,000 with effective date on January 8, 2009.

Simultaneously, the Subsidiary shall compensate Saipem with US $800,000, related to rig spares. This sales and purchase agreement replaces the bilateral put/call option for sale of the same rig that was signed February 5, 2008 and announced on February 6, 2008.

Following the sale of the Rig, the Company will redeem bonds in accordance with the amended loan agreements in the Bond Loans, approved on the bondholders meetings on November 19, 2008.

Petrolia Drilling ASA owns 39,9% of the shares outstanding in Petrojack ASA.

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