Oslo Rig Event 2009 Page 1

SKDP N-Class Jack-Up UnitDrilling/Production

N-Class Harsh Environment Jack-up Drilling/Production

N-Class Harsh Environment Jack-up Drilling/Production

Oslo Rig Event

24 September 2009

Oslo Rig Event 2009 Page 2

Company Introduction

Rig Concept and Design

Project status

Financial

Market update

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2

AGENDA

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4

5

Oslo Rig Event 2009 Page 3

SKDP established September 2006 and located in Kristiansand, Norway

31% owned by Skeie Technology AS, 12% by Wideluck Enterprises and 57% by external investors (Post financial restructuring in July 2009)

Signed contract for design and construction of three KFELS Class N Jack-up Unit with revised delivery in September and December 2010, and June 2011.

OTC listed in Oslo

Operational Management by Skeie Rig Management

COMPANY BACKGROUND - Skeie Drilling & Production ASA (SKDP)

Oslo Rig Event 2009 Page 4

RIG OPERATION

• Skeie Rig Management AS (SRM) established in Trondheim in 2008 as a wholly owned SKDP subsidiary.

• SRM will be responsible for all rig operations after delivery from yard.

• Key onshore and offshore management positions and section leaders already recruited.

• Pre-operations activities ongoing– Training and competency development

programs under development– QHSE management systems

established.– Maintenance systems.– Logistics (spare parts)

Oslo Rig Event 2009 Page 5

Company Introduction

Rig Concept and Design

Project status

Financial

Market update

1

2

AGENDA

3

4

5

Oslo Rig Event 2009 Page 6

Source: Company, ODS Petrodata

TECHNICAL COMPARISON WITH PEERS AS DRILLING RIG

MSC CJ70-X150A 1)

DNV492

40,000

291/336/3867390

15,000

46,793

15,7234,600

1 000 tons/2x1150 HP3

14,4845,200120

RIG DESIGN Keppel N-Class MSC CJ70-X150A MSC CJ62-S120Class DNV DNV DNV

Operating water depth (ft) 400 (430) 492 380

Drilling depths (ft) 35,000 30,000 30,000

Hull size (ft) (LxBxD) 264/289/35 291/336/38 256/296/35

Leg length (ft) 598 673 541

Cantilever outreach (ft) 75 90 60

BOP (psi rating) 15,000 15,000 15,000

Mud Pumps 3 (space for 4) 4 3Liquid mud capacity (bbls) 6,600 6,793 5,400Bulk mud capacity (bbls) 15,892 15,723 14,027Draw works (hp) 4,600 4,600 3,000Top Drive 1 000 tons/2x1150 HP 750 tons/1150 HP 750 tons/2x1150 HPCranes 3 3 3Main Power(hp) 13,050 14,484 6,880Variable Deck Load (st) 4,535 4,600 3,693Accommodation 120 120 115

1) Enhanced version of the existing CJ-70 design with increased drilling depth, increased variable deck load and 1000 t top drive.

Oslo Rig Event 2009 Page 7

TECHNICAL COMPARISON WITH PEERS (OUTSIDE NORTH SEA UNITS)

SKDP Units Typical Premium Unit (1)

Typical Premium Unit (2)

Typical 116-C Typical L-780

Design N-Class (KFELS) MOD V B

(KFELS)

Pacific Class (BM) LeTourneau 116-

C

F & G - L-780

Mod II

Delivered 2010 2006 to 2009 2006 to 2009 1979 1982

Operating Water Depth 500 ft + (1) 350 ft 375 ft 350 ft 300 ft

Leg Length 598 ft 480 ft 506 ft 477 ft 340 ft

Hull Size (L/B/D) 264/289/35 ft 234/208/25 ft 240/224/28 ft 243/201/26 ft 180/175/25 ft

Drilling depth 35,000 ft 30,000 ft 30,000 ft 25,000 ft 20,000 ft

Cantilever Outreach Transverse Envelope

75 ft66 ft

70 ft40 ft

70 ft40 ft

47 ft24 ft

40 ft25 ft

BOP Stack 18 ¾” - 15,000 psi 18 ¾” - 10,000 psi 18 ¾” - 15,000 psi 13 5/8” - 10,000 psi 13 5/8” - 10,000 psi

Mud Pumps 3 x 2,200 hp(space for 4)

3 x 2,200 hp 3 x 2,200 hp 3 x 1,600 hp 3 x 1,600 hp

Liquid mud cap. 6,600 bbls 3,500 bbls 4,100 bbls 1,500 bbls 2,100 bbls

Bulk capacity 15,900 cuft 11,100 cuft 11,300 cuft 8,160 cuft 8,000 cuft

Draw works 4,600 hp 3,000 hp 3,000 hp 3,000 hp 2,000 hp

Top Drive - Rating 1,000 T 750 T 750 T 750 T 500 T

Variable Load (Drilling) 5,000 T 3,750 T 3,750 T 3,900 T 2,400 T

Main Power 13,050 hp 9,275 hp 10,750 hp 6,600 hp 4,950 hp

Accommodation 120 110 115 106 98

(1) Depending on actual location criteria and leg extensions

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COMBINED DRILLING AND PRODUCTION OPERATIONS

The Cantilever and Drill Floor can be repositioned 26ft (7.92M) to the Port side of the Vessel, to allow space for installation of a future production process module.

LimitsArea: 12,918 sq ft (1,200M2) Height: 52.5ft (16M)

Oslo Rig Event 2009 Page 9

Drill Floor located on the substructure above the cantilever.

Cantilever capable of being skidded fore and aft with center line (primary Cantilever position) of rotary up to 75 ft (22.86m) aft of sternIt can be relocated 26 (7,92m) ft to port (secondary Cantilever position)

The Drill Floor can be skidded 20 ft (6.1m) port and starboard of the Cantilever centerline both in primary position and in secondary position

Max operation envelop over a pre-

installed Jacket/Wellhead Platform:75 ft aft of Transom, 20 ft to starboard of hull centerline and 46 ft to port of hull centerline.

SPECIFICATIONS FOR DRILLING OPERATIONS

Oslo Rig Event 2009 Page 10

Proposed Frøy development concept (October 2007)Jack-up production/drilling unit with subsea concrete storage and riser shaft/ wellhead module

Oslo Rig Event 2009 Page 11

Company Introduction

Rig Concept and Design

Project status

Financial

Market update

1

2

AGENDA

3

4

5

Oslo Rig Event 2009 Page 12

OVERALL STATUS

Oslo Rig Event 2009 Page 13

CONSTRUCTION - HULL

Hull structure complete

Main equipment installed

Engines commissioned

First rig undocked Leg fabrication

ongoing Helideck fabrication

ongoing

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CONSTRUCTION - CANTILEVER

Structure complete, main fixed equipment installed Commissioning to start November 2009

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CONSTRUCTION – DRILL FLOOR

Structure complete, main equipment being installed Derrick assembly is ongoing offsite Drilling equipment - commissioning to start January 2010

Oslo Rig Event 2009 Page 16

Company Introduction

Rig Concept and Design

Project status

Financial

Market update

1

2

AGENDA

3

4

5

Oslo Rig Event 2009 Page 17

SKDP CAPITAL STRUCTURE PRE & POST RESTRUCTURING

Bank

Unfunded

Convert110Bonds

Equity

•Enterprice value down from 1620 MUSD to 1130 mUSD•Each rig from MUSD 540 to MUSD 370

Oslo Rig Event 2009 Page 18

MAIN FINANCIAL IMPLICATIONS FROM THE RESTRUCTURING

NOK 540m/$85m SKDP private placement completed

Current SKDP equity valued at NOK 0.5/share (~$6m)– Implying 3% “recovery” at transaction pricing

NOK 660m/~$100m of SKDP convertible bonds exchanged into new SKDP equity worth $10m at NOK 0.5/sh– Approx 10% recovery at transaction pricing

$495m of 2.pr bond loans written down to $305m– 61.6% average bond recovery – Implying $190m total 2.pr debt reduction/write-off– Remaining $305m to be continued as 2.pr debt– In addition, secured bondholders to receive SKDP shares worth approx $50m

(33% SKDP ownership post re-structuring) in exchange for 18-month write off of forward interest from June 2009

Cash break even day rates significantly reduced, reflecting lower capital costs– Break even rates estimated to come down from ~

USDk 360/day to ~USDk 295/day

Bank

Unfunded

Convert110Bonds

Equity

Oslo Rig Event 2009 Page 19

OWNERSHIP DISTRIBUTION POST DEAL

Post restructuring ownership Skeie Technology 31.5%, Wideluck 12%, other external investors (including

convertible bondholders) 23.5% and secured bondholders 33%

Skeie Technology and Wideluck collectively owns 43.5% of SKDP

International investors (secured bondholders and shareholders) represented through Euroclear Bank/Nominees owns 29.3% of the share capital in SKDP

Bondholders behave as individual investors and not as a group post restructuring

Share status Number of shares increased from 77.110 million to 1916.582 million

Oslo Rig Event 2009 Page 20

SKDP – SCENARIOS POST FIXReduced break-even meeting current dayrate environment

SKDP Post Fix SKDP SCENARIOS DAY RATES USD/day 300,000 325,000 350,000 375,000 400,000 425,000 450,000

Utilisation 96% 96% 96% 96% 96% 96% 96%Daily opex incl fixed mgmt fee ($120,000) ($120,000) ($120,000) ($120,000) ($120,000) ($120,000) ($120,000)No of rigs 3.0 3.0 3.0 3.0 3.0 3.0 3.0

PROFORMA P&LRig EBITDA USDm 184 210 237 263 289 315 342SG&A " (10) (10) (10) (10) (10) (10) (10) EBITDA " 174 200 227 253 279 305 332Depreciation (30yr/15yr) " (35) (35) (35) (35) (35) (35) (35)Operating profit " 139 165 192 218 244 270 297Net financials " (75) (75) (75) (75) (75) (75) (75)Pretax profit " 64 90 116 142 169 195 221Taxes (10%) " (6) (9) (12) (14) (17) (19) (22)Net Profit (after tax) " 57 81 105 128 152 175 199Cash Earnings " 92 116 140 163 187 210 234Debt amortisation " (90) (90) (90) (90) (90) (90) (90)Free cash flow " 2 26 50 73 97 120 144

EPS NOK 0.0 7.7 9.9 12.2 14.4 16.7 18.9

Share price NOK 1.0 1.0 1.0 1.0 1.0 1.0 1.0No of shares (fully invested) mill 945 945 945 945 945 945 945Market capitalisation USDm 141 141 141 141 141 141 141Net debt fully invested " 959 959 959 959 959 959 959Enterprise Value " 1,100 1,100 1,100 1,100 1,100 1,100 1,100EV/Rig 367 367 367 367 367 367 367

EV/EBITDA 6.3 5.5 4.9 4.4 3.9 3.6 3.3 P/E 2.5 1.7 1.3 1.1 0.9 0.8 0.7 RoE (on mkt cap) 40.6 % 57.3 % 74.1 % 90.9 % 107.6 % 124.4 % 141.2 %Free cash flow yield (on mkt cap) 2% 18% 35% 52% 69% 85% 102%Net interest bearing debt/EBITDA 5.5x 4.8x 4.2x 3.8x 3.4x 3.1x 2.9xEBITDA/Net interest 2.3x 2.7x 3.0x 3.4x 3.7x 4.1x 4.4xSource: Pareto Securities AS, Corporate Finance

Oslo Rig Event 2009 Page 21

Company Introduction

Rig Concept and Design

Project status

Financial

Market update

1

2

AGENDA

3

4

5

Oslo Rig Event 2009 Page 22

NCS – JACK-UP CONTRACT STATUS

Current Norwegian jack-up fleet tied up on firm contracts.

Limited no. of available units and new entrants on the NCS in 2010/11.

SKDP units well positioned for new contracts based on revised delivery dates.

2009 2010 2011NAME CURRENT OPERATOR FOLLOWING

OPERATORSAREA CURRENT

COUNTRYCONTRACTOR

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Rowan Gorilla 06 BG NOS UK/NOR/UK Rowan Companies c c c c c c 2 2 2 c c c c c c c c c 1 1 1 1 1 1 1 1 1 1 1 1SKDP 1 UNDER CONSTRUCTION SEA SGP Skeie D&P 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2West Epsilon StatoilHydro NOS NORWAY Seadrill c c c c c c c c c c c c c c c c c c c c c cPetroProd UNDER CONSTRUCTION SEA SGP Jurong 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2SKDP 2 UNDER CONSTRUCTION SEA SGP Skeie D&P 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2Maersk Guardian Talisman NOS NORWAY Maersk Contractors c c c c c c c c c c c c c c c c c c c c c c c c cSKDP 3 UNDER CONSTRUCTION SEA SGP Skeie D&P 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2Maersk Giant Talisman DONG NOS NORWAY Maersk Contractors c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c cMaersk Inspirer StatoilHydro NOS NORWAY Maersk Contractors c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c cMaersk Gallant ConocoPhillips NOS NORWAY Maersk Contractors c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c cMaersk Innovator ConocoPhillips NOS NORWAY Maersk Contractors c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c c

FIRM CONTRACT cOPTION 1

YARD / UNDER CONSTRUCTION 2

©2009©2009

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Norway Jackups Supply & Demand: 2005-2013

0

2

4

6

8

10

12

14

16

18

jan.2005 jan.2006 jan.2007 jan.2008 jan.2009 jan.2010 jan.2011 jan.2012

Existing contracts Options Requirements Possibles Supply Including Rowan Gorilla VI

SKDP 1, PetroProd 1 & SKDP 2 & 3 due out of the yard.

Last Updated: 13.07.09

Rowan Gorilla VI - Subject AOCto be clarified around Q3 09

Oslo Rig Event 2009 Page 24

UPCOMING REQUIREMENTS AND PROSPECTS

Client Location/ Field

Statoil Gudrun, DagnyValemon (NCS)

ConocoPhillips Ekofisk area (NCS)

BP Valhall/Tambar (NCS)

Total Hild (NCS)

Lundin Luno, Nemo/Krabbe (NCS)

Talisman Yme, Grevling (NCS)

Det Norske Frøy (Production/drilling) (NCS)

BG MandarinBream (Production/drilling) (NCS)

Client Location / Field

ONGC India

Client Location/ Field

Pemex Gulf of Mexico

Various Deep gas prospects

Client Location / Field

Chevron Nigeria

Husky Location/ Field

Husky Nova Scotia, Canada

Husky Location/ Field

BP/Exxon Sakhalin

Oslo Rig Event 2009 Page 25

SUMMARY

Three N-Class jack-up rigs under construction in Singapore ready for delivery in 2010/11 are on schedule and budget.

Financial restructuring completed in July 2009 securing a significant debt write-off.

All rigs are fully financed during construction period.

New capital structure has triggered close dialogue with several oil companies for drilling projects in North Sea and other markets.

Strong demand for new jack-up drilling units from 2010 onwards with current oil price.

SKDP maintains its optimism that all three rigs will be on contract prior to delivery.

Oslo Rig Event 2009 Page 26

Skeie Drilling & Production ASA

Tordenskjoldsgate 9 4612 Kristiansand Norway

Telephone: +47 38 04 19 40Fax: +47 38 04 19 41

WWW.SKEIEDRILLING.COM