AGR Buys Time for Bredford Dolphin Campaign Off Norway

AGR Group

AGR Dolphin AS, a subsidiary of Fred Olsen, has entered into a Letter of Agreement with RWE Dea Norge AS for a 160 days drilling contract for the semisubmersible drilling rig Bredford Dolphin for operation on the Norwegian continental shelf. AGR will operate the rig on behalf of RWE Dea Norge AS.

AGR Petroleum has an option to extend the contract period with 80 days to 240 days within end of June 2009. The Letter of Agreement is subject to final contract and commencement is in direct continuation with current contract.

CEO Sjur Talstad stated, "This is proof of the significant value AGR's skills and quality of operations contribute to its well management customers."

Mr. Talstad also commented that this is a sign that the rig market is changing, “We believe this agreement is one of several indicators that the activity level within the rig market is increasing and we believe now is the time to act.”

Bredford Dolphin is one of many rig campaigns that AGR Petroleum Services has managed. In 2008 AGR Petroleum Services managed 8 rigs simultaneously worldwide and is pleased that the Bredford Dolphin rig contract has been extended. At the conclusion of the new contract in December 2010, the Bredford Dolphin will have been operated by AGR Petroleum Services for 3 1/2 years. Bredford Dolphin spudded the first well on July 18, 2007, and is now drilling well number 10.

Steinar Berg, VP of Well Management Norway stated, "We will be seeking to add clients to further rig campaigns throughout 2009. Our intention is to continue to provide our clients with cost-effective solutions for planning and executing the drilling of wells."

Bredford Dolphin Rig Campaign

AGR Petroleum Services is responsible for all planning and execution of drilling operations for the Bredford Dolphin Rig Campaign, which is a consortium of 7 operators contracted for 3 years. Each operator signed a contract with Bredford Dolphin, but all contractual activities have been handled by AGR Petroleum Services. The original consortium consisted of Revus, DNO, Pertra, Lundin, Marathon, Endeavour, and BG.