Songa Offshore ASAPresentation June 2006

Songa Offshore ASAPresentation June 2006

Background

Company Overview

• One midwater semi submersible rig – Songa Venus – pt in Singapore doing contract compliance upgrade. Contract in Australia with ENI/Inpex - 12 months at USD 205.000/day plus 2 x 6 months option priced at USD 225.000

• One midwater semi submersible rig – Songa Mercur – pt on her way to Singapore for contract preparation work. Contract in Australia with Chevron 270 days at 300.000/day plus 90 day option at same price plus 2 x 6 months option at market.

• One midwater drill ship – Songa Saturn - under refurbishment/upgrading. Contract for 3 wells + 2 wells option – USD 340,000/day with Noble Energy.

• One midwater semi submersible rig – Songa Dee - working in Norway for Hydro at Troll Field– paying approx 42,000/day until end 2008 – through a BBC with sellers.

• Part owner in one midwater semi submersible rig – DeepSea Bergen - working for Marathon Oil at approx USD144,000/day until approx 08/09. In direct continuation a 3 year contract with Statoil at approx USD 320,000/day.

Background

Company Overview

Shares• Number of outstanding shares: 77.684.113

• Number of options to management and board: 2.500.000 at strike NOK 30

• BOP investors may convert 15,3 mUSD at NOK 35 per share, which equal to approximately 2.740.886 shares.

• Remaining 7,147,540 warrants, strike USD 1.50.

• Number of shares totally diluted: 90.072.539.

Loan• USD 290 million bank loan with Nordea - 1st priority mortgage in

all rigs. Interest rate: LIBOR + 1,75%. Quarterly repayment starting 31/12-2006, ending 27 months thereafter.

• USD 110 million (gross) bond loan. 2nd priority mortgage in Venus and Mercur. Interest rate: 9%. Maturity date: 2010.

• USD 75 million (gross) bond loan. 2nd priority mortgage in Dee. Maturity date: March 2011. Interest rate: 9,75 %.

Management and operation is in place

Corporate Strategy

Chartering policy

Vision

Organization

Business objective

Market

• Songa Offshore’s vision is to be a leading drilling contractor in defined regions where there may be potential. Songa Offshore will become a reputable offshore drilling company – delivering high quality performance to our clients - based on competent and experienced personnel.

• Songa Offshore’s objective is to acquire, enhance and efficiently operate drilling rigs, - and to be a provider of safe and superior performance, to our clients and shareholders, in the shallow and mid water floating rig operation.

• Songa Offshore will build on its current position, both operationally and financially, and expect to make further investments and acquisitions in line with the Company’s strategy.

• Songa Offshore’s chartering policy is based on operational management of the Company’s rigs (time-charter). From time to time the company may lease out a rig without operational management (bare boat charter).

• Songa Offshore will focus on attracting more key personnel with strong industrial competence and experience.

History

Milestones in Songa Offshore ASA

• Acquisition of Songa Venus and Songa Mercur in April-05 - delivered in June-05 – through purchase of Songa Offshore AS.

• Raised USD 50 million equity in April-05 and USD 110 million bond loan in May-05 - including warrants. This bond was refinanced in Sept-05.

• OTC listed May-05 and OSE listed in Jan-06, ticker SONG. Warrants ticker SONW (remain traded on the OTC list).

• Acquired 20% of the rig DeepSea Bergen in Oct-05.

• Additional USD 21 million equity and USD 100 million bank loan facility raised in Sept-05.

• Acquisition of Songa Saturn in Sept-05, delivered Nov-05.

• Contract for Venus signed Dec-05, contract for Saturn signed in Feb-05 and contract for Mercur signed in May-06.

• 55 USD million raised in equity Mar-06 plus a bond loan of 75 USD million.

• Acquisition of Songa Dee in May-06, with a back to back bareboat charter to sellers.

Status going forward

Going forward

• All rigs in operation in Q4-06.

• Strong free cash flow next three years.

• Limited residual value risk when new builds come to market in 08/09.

• Management group in place – competent industry track record.

• Engineering studies commissioned for upgrading the Songa Venus to 3000 ft with a conventional sub sea BOP stack and the Songa Mercur to 5000 ft.

Songa Offshore company structure

Songa Offshore ASA

Songa Venus AS

Bjørgvin Offshore KS

Bjørgvin Offshore AS

Songa Saturn AS

Songa Offshore AS

Songa Offshore Pte Ltd

KS Deep Sea Drilling Company

KS Deep Sea Drilling Company IISonga

Mercur AS

100%100%100% 100%

100% 100% 20,187%

90%

10%

Songa Mgt. Inc.

Songa Mgt. AS

50%

100%

Songa Dee AS

100%

Songa Management

Songa Management undertakes management and operation of the rigs including:

• Marketing of rigs

• Operational management of rigs

• Manning and crew management

• Quality assurance, health and safety standards and procedures

• Corporate services; accounting and reporting

• Corporate governance and compliance

• Manage insurance cover

Songa Venus• Friede & Goldman design

– Pacesetter 1-900 class, built 1974– Enhanced 2005 with 4 new columns and caissons

to increase VDL and pontoons for stability

• Drilling capacity 25,000 ft in 1250 – 1500 ft water

• Accommodation for 105 men

• Variable Deck Load 3,600 MT

• Traditional 8 point mooring system

• 3000 HP National Draw work

• Three National 12-P-160 Mud pumps

• 18 ¾” 10,000 psi Cameron BOP

• ABS class renewed June 2005

• Delivered on 7 June 2005

• Contract signed with ENI/Inpex - Australia

Songa Mercur

• Friede & Goldman Pacesetter 9500 - Built in 1990

• Drilling capacity 25,000 ft in 1200 ft water

• Accommodation for 100 men

• 18 ¾ - 15,000 psi BOP

• Deck load 2000 tons and traditional 8 point mooring system

• Variable deck load of 3000 MT

• 3000 HP National Draw work and 3 x National 12-P-160 Mud pumps

• Class A 1 DNV renewed June 2005

• Delivered 16 June 2005

• Contract signed with Chevron in Australia

Songa Saturn

• Type: Drill ship

• Built: 1983 Keppel FELS, upgraded 1995/1999

• Mooring system: 8 point• Drilling depth: 25,000 ft• Derrick: 1.3 million lb• Draw works: 3,000 hp• Accommodation: 120 persons

• Previous owner: Global SantaFe

• Water depth capacity after upgrade: approx 3,300 ft.Water depth capacity as is; approx 2500 ft.

• Delivered 11 November 2005

• Refurbishment work consist of steel replacement, water depth upgrade, new topside equipment and certain ballast enhancements. Included a 5-year special periodic survey.

• Contract signed with Noble Energy. Ready to drill Q3/Q4-06

DeepSea Bergen

• Aker H-3.2 (enhanced)– Built: 1982 (Aker Stord), later upgraded

• Rig owner: Odfjell Drilling

• Drilling capacity 25,000 ft in 1500 ft water

• Accommodation for 100 men

• Hull dimensions: 303 x 220 x 113

• Variable loads: 6,250 KIPS

• Mud pumps: 3 National 12-P-1,600 pumps

• Cranes: 2 National OS 435 diesel Hydraulic

• Derrick: NorMar Beam leg, DLC 1,100,000 lbs.

• Currently working for Marathon. Followed by a 500 day charter to Hydro until 08/09. Finally a 3 year charter in direct continuation with Statoil.

Songa Dee

• Built 1984, upgraded in 2004

• Water depth capacity: 1,800 ft,

• SBOP capability for 6,000 ft

• Variable deck load (operating): 4,700 tonnes

• Mooring system: Anchored with truster assist

• 120 man accommodation

• BOP Stack: Cameron UII 18 3/4’’ 15,000psi

• Bareboat back to back with sellers until 08/09. Rig working for Hydro in Norway.

Board of Directors

• Arne Blystad (51), chairman. Independent investor and business man. Owns and operates shipping- and investment activities through a group of companies.

• Einar Greve (46), board member. Partner in the law firm Wikborg, Rein & Co. in Oslo Formerly head of legal department at Oslo Stock Exchange. Degree in law (cand.jur.) U of Oslo in 1987. Various board positions in Norwegian listed and unlisted companies.

• Gunnar Hvammen (42), board member. Independent investor. Founder of Offshore Heavy Transport ASA. Senior corporate partner in Fondsfinans ASA. Background as a rig S/P broker from PF Bassøe/Loosbrock and Normarine Offshore Consultants, which he co-founded.

• Jon Chr. Syvertsen (44), board member. Director in Arne Blystad AS. Previously commercial director and VP in Frontline, executive director in Umoe AS. Civil engineer from NTNU, MBA from IESE (Barcelona).

Executive Management

• Bob Scott, CEO. 35 years in Transocean where he previously was Senior Vice President of Operations.

• Asbjørn Vavik, COO. 18 years in construction and operation of offshore rigs as well as owning and operating a land drilling company for 12 years.

• Tom Jebsen, CFO. Previous 9 years with Frontline and the John Fredriksen group. Before with Tschudi & Eitzen and Dyno.

• Dennis Heagney, VP Business Dev. COO with Transocean retiring after 33 years of service. Chairman of IADC in 1996. Graduate in petroleum engineering from the Colorado School of Mines.

• Alan Broussard, VP Marketing and Engineering. During 30 years of service for Transocean he held management positions in engineering, R&D, construction, operations and marketing. Graduate with a master degree in Offshore Structural Engineering, from Uni. Of Houston.

• Andrew Saville, QHSE Manager. Post-graduate degree in management, government and administration and emergency management. Formerly worked for Oil Drilling & Exploration and Pride international.

P/L and Balance Sheet

-0.14Basic

Net earnings per share (USD):

-8 888Loss for the period

3 456Tax income

-12 344Loss before tax

-8 611Finance costs

-6 334Other operating costs

2 601Revenue

2006Amounts in USD '000 (earnings per share in USD)

(IFRS - non audited figures)

for the period J anuary - March

Consolidated income statement

Songa Offshore Group

-0.14Basic

Net earnings per share (USD):

-8 888Loss for the period

3 456Tax income

-12 344Loss before tax

-8 611Finance costs

-6 334Other operating costs

2 601Revenue

2006Amounts in USD '000 (earnings per share in USD)

(IFRS - non audited figures)

for the period J anuary - March

Consolidated income statement

Songa Offshore Group

265 540356 135Total Equity and Liabilities

204 972230 332Total liabilities

39 82241 104Total current liabilities

165 150189 228Total non-current liabilities

60 568125 803Total equity

-24 946-21 639Other equity

2760Paid in, not registered share capital

76 232136 388Share premium

9 00611 054Share capital

Equity

EQUITY AND LIABILITIES

265 540356 135Total assets

4 63857 264Total current assets

260 902298 871Total non-current assets

ASSETS

20052006Amounts in USD '000

31 Dec31 Mar

(IFRS - non audited figures)

Consolidated balance sheet at

Songa Offshore Group

265 540356 135Total Equity and Liabilities

204 972230 332Total liabilities

39 82241 104Total current liabilities

165 150189 228Total non-current liabilities

60 568125 803Total equity

-24 946-21 639Other equity

2760Paid in, not registered share capital

76 232136 388Share premium

9 00611 054Share capital

Equity

EQUITY AND LIABILITIES

265 540356 135Total assets

4 63857 264Total current assets

260 902298 871Total non-current assets

ASSETS

20052006Amounts in USD '000

31 Dec31 Mar

(IFRS - non audited figures)

Consolidated balance sheet at

Songa Offshore Group

20 largest shareholders

No. of shares % Name Account Citizenship

12 782 997 16,46 SPENCER ENERGY AS NOR3 490 640 4,49 GOLDMAN SACHS NOM GBR2 340 847 3,01 MORGAN STANLEY NOM GBR2 183 300 2,81 LEHMAN BROTHERS Inc. NOM USA2 105 241 2,71 CREDIT SUISSE NOM GBR2 045 306 2,63 J PMORGAN CHASE BANK NOM GBR1 943 006 2,5 UBS AG CHE1 851 895 2,38 STATE STREET BANK NOM USA1 832 500 2,36 SIMASK AS NOR1 485 000 1,91 DEUTSCHE BANK CHE1 481 140 1,91 BANK OF NEW YORK GUM1 336 312 1,72 MORGAN STANLEY & CO NOM GBR1 328 600 1,71 J PMORGAN CHASE BANK NOM GBR1 183 462 1,52 BANK OF NEW YORK GBR1 100 000 1,42 LAUVHEIM HOLDING AS NOR1 060 452 1,37 SKANDINAVISKA ENSKIL NOM SWE1 060 000 1,36 UTHALDEN A/S NOR925 400 1,19 J PMORGAN CHASE GBR756 170 0,97 MELLON BANK AS NOM USA740 200 0,95 BANK OF NEW YORK NOM CYM

Investor Relations

Share:OSE ticker ”SONG”

ISIN NO 001 0268451

Warrant:OTC ticker “SONW”

Contact / Investor Relations:

Tom E. Jebsen, tjebsen@songa.noPhone +47 907 47 997