BassDrill: Pareto Conference 2011 September 1st, 2011

BassDrill

BassDrill

Proven tender drilling contractor with focus on new assets in a growth market 1

1st tender barge accepted and proven by major operators

2

Newbuild against contract, on schedule

3

Early phase engineering contracts secured with major operators

G Growth th 4

In-house modular drilling package engineering team

5

Controlled portfolio of new generation designs

6

Long term shareholder base; experienced management team

BassDrill

2

1

BassDrill Alpha accepted and proven by major operators New generation design  Configured to move quickly and efficiently  Double-hull gives increased safety  600mt lightweight drilling package  Lifted onto platform in 25mt packages – lower risk  Operation in a broad range of sea conditions  Contemporary, p y efficient drilling g components p

6 5

4

Successful performance, good cash flow  Delivered Jan 2010  Completing ~12 mo. contract with Perenco Congo  Contract extended for additional platform  Further extensions for workovers  Averaged 98% uptime

 Follow on six wells plus six wells contract with Total Congo  Startup Q4 2011  8-9 8 9 month estimated firm term  26-30 MUSD contract value  12-14 MUSD est. EBITDA

Note: BassDrill Alpha owned 25.3% by BassDrill Ltd.

BassDrill

3

2 3

1

BassDrill Beta building against contract with Petrobras BassDrill offered Petrobras a superior rig

6 5

4

Construction against contract

 First tender semi design to meet more challenging sea conditions than existing design

 Fully turnkey construction at DSIC (Dalian)

 Open, proprietary design allowed for international shipyard tender (lower price vs. existing design)

 125 MUSD post delivery financing secured

 20/80% payment terms (20, 0.5, 0.5, 79)

 Delivery Q1 2013  In-house engineering team designed drilling package for use on Petrobras TLWP Management s experience and track record key in  Management’s being able to gain confidence from Petrobras

 Drilling package constructed in USA by Axon Energy Products (a HitecVision company) as subcontract to shipyard  Steel cutting Jul 2011

 945 day firm contract period starting Q1 2013  192 MUSD contract value ex. p performance bonus  114 MUSD est. EBITDA ex. SG&A

BassDrill

4

2 3

In-house engineering expertise is key to tender market success Oil companies O co pa es looking oo g for o new e solutions  Lighter drilling packages to access weight constrained platforms  Efficient package design for enhanced operational performance and uptime

1 6 5

4

In-house ouse engineering e g ee g team tea in market provides them  Specialized design competence  P Proven experience i iin construction, t ti management, and operation  Project management ensures on time, on budget construction

 Safer operating capabilities

New opportunities  Early phase engineering contracts secured with Exxon and Daewoo  Potential for rig management contracts – cash flow without investment  BassDrill has gained interest from other major operators to provide solutions for new generation rigs

BassDrill

5

2 3

BassDrill controls a ready to build portfolio of new generation tender rig designs

1 6 5

4

Portfolio  Light, Light medium, medium and heavy tender barge designs  Tender semi BT-3500  Multi-year exclusive design rights  Provided by BassTech (controlled by Bassoe), a leader in design of floating units  Designs can be built in any qualified shipyard

Designs are proven  Medium tender barge (Alpha) successfully operating for Perenco and Total  BT-3500 tender semi (Beta) based on earlier, successful semisubmersible hull designs

BassDrill

6

2 3

1 6 5

Active, long term lead investor, HitecVision

4

 HitecVision Asset Solutions (HVAS) holds ~51% of BassDrill Ltd.  420 MUSD fund targets asset based/equipment intensive side of the oil and gas service industry  Initial investment of 40 MUSD  Substantial S b t ti l additional dditi l equity it ffrom th the ffund d reserved d ffor BassDrill B D ill  Investment horizon 3-7 years Shareholder name

 Founder Erland P. Bassoe holds ~15% of the company

HVAS INVEST ZETA AS BASS INVEST AS* ODIN OFFSHORE JEFFERIES & CO., CO INC. INC PICTET & CIE BANQUIERS SKIPS AS TUDOR WIECO AS FREYER HOLDING AS KONTIKI FOUR WORLD HOLDINGS LTD 10 LARGEST OTHERS

* Controlled by E. P. Bassoe in addition to shares held privately

BassDrill

TOTAL

# of shares Ownership

23 446 659 6 061 050 2 687 600 1 343 800 1 075 000 1 075 000 1 075 000 977 500 948 200 38 689 809

51,22 % 13,24 % 5,87 % 2 94 % 2,94 2,35 % 2,35 % 2,35 % 2,14 % 2,07 % 84,52 %

7 088 559

15,48 %

45 778 368

100 00 % 100,00

7

2 3

1

Experienced management team and Board of Directors Management team:

Board of Directors:

 Kerry Kunz – CEO

 Helge Haakonsen – Chairman

 Former VP of Offshore Operations for Nabors International

 Lasse Kjelsås Kjelsås, CFO  Former CFO Aker Clean Carbon AS and Director, Corporate Finance at First Securities ASA

 Keith Stratton – SVP Quality, y, Health,, Safety, y, Environment & Training  Former VP of Quality, Health, Safety and Environment for Nabors International

 Christian Wood – SVP Engineering and Projects  Former Project Engineer for Nabors International

 Eric Hoegg, CPA – SVP VP Finance & Administration

6 5

4

 Former CEO of Fred Olsen Energy

 Pål Reiulf Olsen – Deputy Chairman  Partner, Partner HitecVision; former financial advisor at First Securities

 Erland P. Bassøe  Founder of BassDrill, BassDrill Floatel International, International ODSODS Petrodata, Hercules Offshore, Scorpion Offshore, Frontier Drilling, Seajacks, and BassTech

 Roy O. Hallås  Senior advisor and partner of Vestenfjeldske AS; Former Executive VP & COO of Prosafe Production

 Ola Sætre  Co-founder, HitecVision and its predecessor, Hitec; 25 years of experience from the petroleum industry

 Former Director International Marketing and Business Development for drilling and workover operations

BassDrill

8

2 3

BassDrill will take advantage of tender market growth

Growth

Major activity has occurred over the past 6 months and continues Rig name

Manager

Operator

Rig type

Country

Term

T-12 T-15 T-16 BassDrill Alpha MTR-2 W t Menang West M W.D. Kent Global Jade BassDrill Alpha T-7 West Berani

Seadrill Seadrill Seadrill BassDrill Mermaid Drilling S d ill Seadrill KCA Deutag KCA Deutag BassDrill Seadrill Seadrill

Chevron Chevron Chevron Perenco Chevron M h Murphy Petronas Carigali PEMEX Total Chevron Chevron

Barge Barge Barge Barge Barge S i Semi Barge Barge Barge Barge Semi

Thailand Thailand Thailand Congo Indonesia M l Malaysia i Malaysia Mexico Congo Thailand Indonesia

3 years + 2 year option 5 years 5 years 3 wells + 1 well option 9 months 18 months th 1 year 685 days 6 wells + 6 x 1 well options 15 month extension 1 year

Day rate 120 550 115 000 115 000 93 000 97 000 160 000 115 000 89 999 88 000 170 000

Source: BassDrill; ODS-Petrodata

Market dynamics are changing:  Seadrill scrapped pp barge g T-8, a 25 y year old asset – more retirements can be expected p  Kencana recently ordered two newbuild tender barges for delivery in Q1 2013  New markets have emerged: Mexican GoM and Trinidad & Tobago  Market bifurcation taking place: older rigs starting to see lower dayrates (Global Jade)  Extreme demand still keeping some very old rigs in the market at high dayrates (W.D. Kent)  BassDrill will maintain focus on newbuilds, newbuilds as they are the clear preference for operators

BassDrill

9

Tender semi demand increasing due to high growth in deepwater field development TLPs and Spars becoming more prevalent

Tender semis are most cost effective for TLPs/Spars

 Dryy Tree/Surface well developments p cheaper p to drill and maintain  Re-entry on dry tree platforms (using a tender drilling rig or platform rig) is much cheaper and faster than re-entering sub-sea wells

 Tender drilling rigs have lower weight requirements than platform rigs which allows oil companies to build lighter, and more cost effective, TLPs or Spars  Petrobras saved ~600 MUSD by using tender semi vs. platform rig*

# of Rigs that can drill in water >6,000 ft:

Source: ODS-Petrodata; MMS

Growth

Production platform structures types:

*Article from Offshore Engineer April 2010

BassDrill

10

Semi tenders provide a stable and profitable business EBITDA / newbuild cost

Growth

EBITDA over time for SDRL units (USDm) 50

20%

West Pelaut ((100%))

45 40

15%

West Menang (100%)

35

West Alliance (100%)

30

10%

25

West Setia (100%)

20

5%

15

West Berani (100%)

10

0%

West Vencedor ((100%)) 1Q10

5

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

Semi-tenders

Jackups

West Jaya (100%) 1Q11

Floaters

 Semi tenders have historically had significantly lower volatility in return on investments  Jackups and floaters have over time been volatile and timing is more important when making investment decisions (especially because of 2–3 year delivery period)

Source: Pareto Securities Research

BassDrill

11

Tender drilling fleet has high proportion of aged assets

Growth

Fleet age (years):

Newbuild

1-10 years

10-25 years

>25 years

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

 14 of the flat bottom units are 27 years or older; 5 of those units are over 30 years of age  Tender semi fleet expansion expected (currently 10 rigs including newbuilds)

* Incl. 5 units which are 49% owned

Source: ODS-Petrodata

BassDrill

12

Tender market with one dominant player creates opportunities

Growth

Global tender rig fleet by owner:

Saipem; 1 BassDrill; 2 Atwood; 1 Kencana; 3 PV Drilling; 1 Mermaid; 2

S d ill* 20 Seadrill*; 20

KCA Deutag; 3 M li ** 4 Marlin**; 4

 Market dominated by Seadrill owning ~55% of the global fleet*  Further consolidation expected * Incl. 5 units which are 49% owned; ** KCA Deutag managed

BassDrill

13

High tender market utilization and strong dayrates

Growth

Global tender rig fleet – contract status Rig Name BassDrill Beta T-15 T-16 PV Drilling TBN West Pelaut KM-1 T-12 West Alliance West Vencedor Global Sapphire T-4 T-11 Saipem TAD West Jaya W. D. Kent T-6 West Menang T-7 Global Emerald T-10 West Setia BassDrill Alpha T-3 Teknik Berkat Searex IX T-9 West Berani Global Jade Kencana TBN1 Kencana TBN2 West Esperanza T-17 MTR-2 Seahawk Searex X MTR-1 Charley Graves

Type Semi Barge Barge Semi Semi Barge Barge Semi Semi Barge Barge Barge Barge Semi Barge Barge Semi Barge Barge Barge Semi Barge Barge Barge Barge Barge Semi Barge Barge Barge Semi Barge Barge Semi Barge g Barge Barge

Manager BassDrill Seadrill Seadrill PV Drilling Seadrill Kencana Seadrill Seadrill Seadrill KCA Deutag Seadrill Seadrill Saipem Seadrill Marlin Seadrill Seadrill Seadrill KCA Deutag Seadrill Seadrill BassDrill Seadrill Seadrill Marlin Seadrill Seadrill KCA Deutag Kencana Drilling Kencana Drilling Seadrill Seadrill Mermaid Drilling Atwood Marlin Mermaid Drilling g Marlin

Country Brazil Thailand Thailand Vietnam Brunei Darussalam Malaysia Thailand Malaysia Angola Indonesia Thailand Thailand Congo Trinidad & Tobago Malaysia Thailand Singapore Thailand Brunei Darussalam Malaysia Angola Congo Thailand Malaysia Malaysia Malaysia Indonesia Indonesia Malaysia Malaysia Singapore China Indonesia Equatorial Guinea Angola Thailand Malaysia

Dayrate 203 000 115 000 115 000

2011 2012 2013 2014 2015 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

120 000 125 000 120 000 170 000 207 000 131 000 101 000 134 000 170 000 120 500 101 000 160 000 64 500 123 000 120 000 163 000 94 000 83 000 124 660 115 000 135 000 165 000 105 000

stacked stacked stacked stacked stacked

Contract

Option

Construction

Source: ODS-Petrodata; BassDrill

BassDrill

14

BassDrill will seek low cost, low risk solutions to expand fleet

Growth

Primary y focus to manage g risk and be positioned p to build against g contract:  “Soft start” newbuild projects to proactively take advantage of market needs and secure capacity to deliver newbuilds quickly by:  Investing in engineering up front  Buy critical components  Secure low, up front, non-recourse shipyard payment terms  Share equity risk with local partners

BassDrill will actively use capital markets to ensure funding for growth:  IPO planned to be launched in 2011 provided that the prevailing market conditions allow for successful execution

BassDrill

15

Summary – BassDrill  Proven in the market  Foundation for growth in place  Increasing demand in tender drilling market  Company focus on deepwater tender semis  Actively using capital markets to achieve growth

BassDrill

16