1. Petrolia Drilling ASA 4th quarter 2006

2. 2 Key events  SS Petrolia - Good performance through 4th. quarter and into 1st. Quarter 2007.Contract coverage until September 2007. Aim to secure further contract near term.  DS Deep Venture (50% owned through Venture Drilling AS) will start on an 18 months contract with ExxonMobil in the 1st quarter 2007. The value of the contract is in the range of MUSD 200-220.  As per Year end 2006, Petrolia Drilling ASA controls approx. 44 % of PetroMena AS, building three modern, semi submersible drilling rigs (PetroRig I, II and III) at the Jurong Shipyard in Singapore. PetroRig I and II have recently entered into 5 -year contracts with Petrolio Braseliero S.A. with gross values of USD700 and MUSD 645 respectively.

3. 3 Key events  Stronger balance sheet: book value of equity increased in the 4th quarter 2006, as a result of a share capital increase and positive results, to MNOK 1,396.The balance sheet incorporates the 44% ownership in Petromena AS. SS Petrolia has a book value of MNOK 168, which reflects historic cost, including upgrades, adjusted for depreciation.  After the balance date, Petrolia Drilling ASA purchased 25 mill shares in Petrojack, and now control 39,93% of the outstanding shares in Petrojack. The purchase will be incorporated in the accounts as per 1st quarter 2007.  After the balance date, Petrolia Services AS, a 100% owned subsidiary of Petrolia Drilling ASA, purchased 100% of the shares in Independent Oil Tools AS for MNOK 380. The purchase will be incorporated in the accounts as per 1st quarter 2007.

4. Financials

5. 5 PETROLIA DRILLING ASA 4th. QUARTER REPORT 2006 - consolidated accounts

6. 6 PETROLIA DRILLING ASA 4th. QUARTER REPORT 2006 - consolidated accounts (cont.)

7. 7

8. Market development

9. 9 Strong underlying fundamentals  Energy demand and offshore market fundamentals are favorable and improving  Oil demand growing per year; crude oil prices have improved by 800% since beginning of 2000  Deep water drilling is fastest growing area of rig demand within offshore sector  Offshore production expected to increase 6 -8 % per year  Utilization of floaters world wide is near 90%.

10. 10 Source: ODS-Petrodata/First Securities SUPPLY AND DEMAND

11. 11 Why is demand expected to increase?  Oil companies need to increase proven reserves  High oil price leads to more exploration and well testing  China needs more energy to keep up growth  In December 2004 China imported 80% more oil than in December 2003  Growth is expected to continue

12. 12 Replacement of reserves is a challenge

13. 13 Replacement of reserves is a challenge

14. 14 Developing countries have a stronger and more distributed demand

15. 15 Gap between commitment and activity …… #licenses w/drill or drop increases # of drilled wells decreases

16. 16 … pushing ultra-deep rates higher… (ultra-deep water rates vs. oil price) Source: ODS-Petrodata, ABGSC

17. 17 … lack rigs…? Source: ODS-Petrodata, ABGSC

18. Drilling units

19. 19 Market opportunities SS Petrolia Upgraded, 2. generation semi-rig  Build: 1976 / upgraded 1995/2005  Capacity: 1.200 feet  DnV class  Drilling for Apache  Dayrate USD 150000 pr.day-USD 300000 Value assumptions  Booked value: MNOK 168 (ca. MUSD 27,0).  Estimated broker value is MUSD 200.  Contract with Island Oil & Gas/Apache.

20. 20 Market opportunities Deep Venture(50%)  Upgraded drillship  Build: 1983 / upgraded 1998 / 2006  Capacity: 4.500 feet  DnV class  Drydock Cape Town 5 year survey.  Opex. USD 7.500 per day  Signed 18 month contract with Exxonmobil Value USD 220mio  The Drillship is being reactivated – commencement contract 1st quarter 2007

21. 21 Rental and tubular running services to the oil and gas industry world wide. Customers are oil companies, drilling contractors, integrated services companies and smaller service companies. Main product is drillpipe and tubing, of which we carry a substantial stock of various sizes and grades. A mix of long-term contracts, frame agreements and ad-hoc work. Geographically spread with locations in Norway, The Netherlands, Romania, Azerbaijan, South Africa, UAE, Qatar, Singapore, Malaysia, Australia and New Zeeland. The market is expected to remain at current level for 2007 due to high level of activity in the oil sector, long delivery time for new equipment and increasing equipment cost due to great demand for new equipment and high steel price. In accordance with accounts for Independent Oil Tools AS of 31.10.2006 the turn over was MNOK 155, the result before tax was MNOK 40,9 and total assets was MNOK 412,5. PETROLIA SERVICES AS

22. Concluding remarks

23. 23 Going forward  Strengthened financial position  Increased market interest in SS Petrolia  Increased market interest in Deep Venture  Increased interest in Petromena (44%)  Increased interest in Petrojack(39,9%)

25. 25

26. 26 Senior secured bond issue to finance the two rigs (1)Assume equity issue of USDm 150 in order to have a small capital buffer and to service interest payments in the construction period. (see slide 28 for cash payments during construction period) Investment two drilling rigsUS$m  Estimated new-building cost two rigs927  Working capital, SG&A, contingencies, etc78  Interest cost during construction period 132  Financing need 1,137 Financing sources  Equity already issued264  Further equity needs (1) 150  Further debt with better priority400  Bond financing (NOKm 2,000)323  Total financing1,137 Ratios  Debt to construction cost72%

27. 27

28. 28 PetroMena’s two existing contracts PetroRig I Confidential  Delivery:January 2009  Contractor: Petrobras  Area of operations:Brazil and US GoM  Maximum water depth:10,000 ft with risers  Contract value:USDm 700  Contract length:5 years  Implied dayrate: USD 383,000/day  Estimated daily OPEX:USD 120,000/day  Annual rig EBITDA:USDm 89 PetroRig II Source: Pareto/PetroRig  Delivery:September 2009  Contractor: Petrobras  Area of operations:Brazil  Maximum water depth:7,500 ft of risers  Contract value:USDm 645  Contract length:5 years  Implied dayrate: USD 353,000/day  Estimated daily OPEX:USD 100,000/day  Annual rig EBITDA:USDm 85 2 x contracts

29. 29 Rig specifications Technical details PetroRig III Confidential Source: PetroRig Hull construction of PetroRig I

30. 30 # of units Total fleet 204 units Average fleet age 20 years 49 units built since 1990 64 units built last 20 years 48 units under construction Floater fleet: 44 units under construction ~23 % of current fleet)

31. 31 Strong increase in floater demand next 12 months..incremental demand estimated to 32 units/18% Source: Pareto Securities & ODS Petrodata Confidential

32. 32 Petrorig III  PetroMena will have three 6th generation semi submersible drilling rigs on order from Jurong Shipyard. The rigs are equipped for drilling on ultra deepwater (10,000/7,500 feet) with harsh environment capabilities, and they will be the third, fourth and fifth 6th generation rigs to be constructed at Jurong Shipyard  PetroRig III is scheduled to be delivered from the yard in January 2010. (PetroRig I and PetroRig II have delivery dates from the yard in January and September 2009)  Turnkey contract with Jurong shipyard for PetroRig III at USDm 524 – Jurong is responsible for the design, fabrication and functionality of all major rig items, including the drilling package, thrusters, DP and BOP – The turnkey contract limits risk of cost overruns and includes yard penalties for non-permissible delays beyond the construction period – The contract includes 7,500 feet of risers, but the rig can be equipped with 10,000 feet of risers  The units’ specifications enable it to be suited for operations in areas like West Africa, Gulf of Mexico, offshore Brazil and other ultra deepwater areas  The contract price for PetroRig III was agreed in June 2006 – If a similar unit was ordered today from Jurong, it is likely to cost more than USDm 600 and be delivered in 2011  Jurong may use different sub-contractors to construct the rig. Experienced sub-contractors include among others Aker Kværner Maritime Hydraulics (drilling system), Kongsberg Maritime (DP & Vessel Management System), ABB (Power Management Systems) and Rolls Royce (thrusters) – The third rig is similar to the two other PetroMena units Source: Jurong/PetroRig Confidential

33. 33 Senior secured bond issue to finance PetroRig III Construction Cost = USDm 620 a)Pareto expects the company to draw on the 1. pri debt during 2009  Project costUSDm  Turnkey yard contract524  Management fee9  Other, spare parts, contingencies, etc12  Interest cost during construction period 75  Financing needed620  Financing sources  Equity already paid in35  Additional equity before Settlement Date 50  Further equity needs85  Further debt with better priority200  Bond financing (NOKm 1,600)250  Total financing620  Gearing Ratio  Debt to construction cost73% Confidential Source: Petrorig/Pareto estimates

34. 34 Significant equity buffer at delivery  combined with decreasing “Loan to Value” Construction cost  The NOK 1,600 million (USDm 250) bond has a amortization profile of NOKm 70 in year 4, NOKm 90 in year 5 and NOKm 130 in year 6, leaving NOK 1,310 million (~USDm 206) at Maturity Date.  The figure to the left illustrates that also the 1. pri debt shall amortize towards 2014, reducing the residual risk for the bond  Loan to construction cost ~73% initially  Loan to construction cost prior to Maturity Date ~56% Confidential Loan / Construction cost ~73% ~56% Amortization Source: Pareto estimates

35. 35 The PetroMena Group – 3 rig owning subsidiaries PetroMena AS Debt: NOKm 2,000 2. pri bond Carve out of max. USDm 400 PetroRig I Pte Ltd “Petrorig I” 100 % Source: PetroRig / Pareto Confidential PetroRig III Pte Ltd “Petrorig III” Debt: NOKm 1,600 bond Carve Out: max USDm 200 PetroRig II Pte Ltd “Petrorig II” 100 % Issuer of new bond

36. 36 PetroJack ASA – Company structure PetroJack ASA 100% Source: PetroJack / Pareto Confidential PetroJack I Pte Ltd Singapore PetroJack I Singapore Flag SOLD 100% PetroJack II Pte Ltd Singapore PetroJack II Singapore Flag 100% PetroJack III Pte Ltd Singapore PetroJack III Singapore Flag SOLD 100% JackInvest Pte Ltd Singapore PetroJack IV Singapore Flag Rigs to be partly financed through USDm 200 & NOKm 500 bond

37. 37 The story  PetroJack ASA was incorporated on October 4th 2004 by Larsen Oil & Gas (LOG.  Equity issue of NOKm 105.35 / USDm 17.4 was completed in March 2006 (4.3 million shares at a subscription price of NOK 24.50 per share)  New loans of USD 200mill and MNOK 500  Sale of Petrojack I and III for USD 420mill in July 2006 Share price performance Confidential Source: PetroJack / Pareto *Mr Berge G. Larsen and related parties are significant shareholders in Independent Oil Tools

38. 38

39. 39 63 jackups under construction ~ 15-16% of current fleet Total jackup fleet 397 units Average fleet age 25 years Only 37 units built since 1993 Only 52 units built last 20 years 63 units under construction # of units Source: Pareto

40. 40 Strong increase in jackup demand next 12 months..incremental demand estimated to 65 units/19% Source: ODS Petrodata – World Rig Forecast December 2006

41. 41 International jackups Source: ODS Petrodata, Companies, Pareto Securities research