N-Class Harsh Environment Jack-up Drilling/Production SKDP - - PowerPoint PPT Presentation

N-Class Harsh Environment Jack-up Drilling/Production SKDP - Quarterly Update London, 7 th December 2009 SKDP N-Class Jack-Up Unit Drilling/Production London - 7 th December 2009 Page 1

DISCLAIMER DISCLAIMER This presentation and its enclosure and appendices (hereinafter jointly referred to as the “Presentation” has been prepared b y Skeie Drilling and Production ASA (“SKDP” or the “Company”) exclusively for information purposes in connection with the Company’s quarterly update. This Presentation has not been reviewed or registered with any public authority or stock exchange. This presentation is strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person. This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities in the Company. This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “ tar gets”, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of itsparent or subsidiary undertakings or any such person’s officers or employees pr ovides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or any of its parent or subsidiary undertakings or any such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this Presentation. This Presentation contains information obtained from third parties. Such information has been accurately reproduced and, as far as we are aware and able to ascertain from the information published by that third party, no facts have been omitted that would render the reproduced information to be inaccurate or misleading. The Company's properties and certain financial derivatives are included at fair value in the Company's group account. Changes in fair value are recorded quarterly in the income statement and, with respect to the properties, are based on third party valuation. Consequently, adjustment based on changes in fair value may affect the company's income. By attending or receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business. This Presentation and the information contained herein do not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States and are not for publication or distribution to U.S. persons (within the meaning of Regulation S under the U.S. Securities Act of 1933, a s amended (the “Securities Act”)). This Presentation speaks as of 7 December 2009. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. London - 7 th December 2009 Page 2

SKDP CLASS-N JACK-UP UNIT TABLE OF CONTENT 1 Company Background Rig Concept and Status 2 The Jack-Up Market 3 Financials 4 London - 7 th December 2009 Page 3

COMPANY BACKGROUND SKEIE DRILLING & PRODUCTION ASA  SKDP was established on 26 January 2006 by Skeie Technology AS  Business Concept - to offer rigs which will be superior in relation to drilling efficiency & capacity, water & drilling depth capacity and able to provide simultaneous drilling and production operations in harsh environments  The Company’s present business activities are focused on project management of the Keppel FELS contracts, operational preparations and marketing activities  Turn-key contracts for design and construction of three KFELS N Class Jack-up Units with delivery September 2010, December 2010 and June 2011  31.5 % owned by Skeie Technology AS / Skeie Tech Invest AS and 12.0 % by Wideluck Enterprises (Owned by Keppel FELS)  Administrative services provided by Skeie Technology AS  OTC listed in February 2007 London - 7 th December 2009 Page 4

SKDP CLASS-N JACK-UP UNIT TABLE OF CONTENT 1 Company Background Rig Concept and Status 2 The Jack-Up Market 3 Financials 4 London - 7 th December 2009 Page 5

RIG CONCEPT AND STATUS SPECIFICATIONS FOR DRILLING AND PRODUCTION OPERATIONS  Harsh Environment (e.g. North Sea and Canadian waters)  High pressure/high temperature deep-gas wells (e.g. GoM & southern NCS)  Deep water capability - in excess of 500 ft in benign environments  Extended reach and transverse skidding of Drill Floor  Combined drilling & production facilities  10 wells tie back or sub sea completion with production module installed  Operations in 122 meters water depth on NCS. Optional 131 meters with 30 ft. leg extension on NCS.  Drilling depth up to 35,000 ft (10,667 m)  True 1,000 T lifting capacity.  North Sea type pipe handling systems (on deck & in derrick)  Standbuilding while drilling capability.  Living Quarters accommodates 120 persons.  Closed drain and cutting disposal systems. London - 7 th December 2009 Page 6

RIG CONCEPT AND STATUS COMBINED DRILLING AND PRODUCTION OPERATIONS Limits The Cantilever and Drill Floor can be repositioned 26 ft (7.92 m) to the Port side of the Unitl, to allow space for installation of a future Area: 12,918 sq ft (1,200 m 2 ) production process module. Height: 52.5 ft (16 m) London - 7 th December 2009 Page 7

RIG CONCEPT AND STATUS TECHNICAL COMPARISON WITH PEERS - NCS MSC CJ70-X150A MSC CJ62-120S N-Class (KFELS) Hitachi Zosen Design Design Delivered 2010/2011 2002/2004 1992/1993 1986 Operating Water Depth 400 (430) ft 492 ft 390 ft 350 ft Leg Length 598 ft 673 ft 575 ft 515 ft Hull Size (L/B/D) 264/289/35 ft 291/336/38 ft 257/296/35.5 ft 277/295/31 ft Drilling depth 35,000 ft 30,000 ft 25,000 ft 25,000 ft Cantilever Outreach 75 ft 90 ft 60 ft 55 ft 18 ¾” - 15,000 psi 18 ¾” - 15,000 psi 18 ¾” - 15,000 psi 18 ¾” - 15,000 psi BOP Stack Mud Pumps 3 (4) x 2,200 hp 4 x 2,200 hp 3 x 2,200 hp 3 x 1,600 hp Liquid mud cap. 6,600 bbls 6,800 bbls 5,400 bbls 2,900 bbls Bulk capacity 15,900 cuft 15,700 cuft 14,000 cuft 13,500 cuft Drawworks 4,600 hp 4,600 hp 3,000 hp 2,000 hp Top Drive - Rating 1,000 T 750 T 750 T 500 T Main Power 13,050 hp 14,500 hp 6,900 hp 6,600 hp Accommodation 120 120 100 100 London - 7 th December 2009 Page 8

RIG CONCEPT AND STATUS TECHNICAL COMPARISON WITH PEERS - BENIGN ENVIRONMENT Typical Premium Typical Premium SKDP Units Typical 116-C Typical L-780 Unit Unit 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 + 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 75 ft 70 ft 70 ft 47 ft 40 ft Transverse Envelope 66 ft 40 ft 40 ft 24 ft 25 ft 13 5 / 8 ” - 10,000 psi 13 5 / 8 ” - 10,000 psi 18 ¾” - 15,000 psi 18 ¾” - 10,000 psi 18 ¾” - 15,000 psi BOP Stack Mud Pumps 3 (4) x 2,200 hp 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 Drawworks 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 London - 7 th December 2009 Page 9