U.S. Dividend Classification

This statement is provided for shareholders who are United States persons for purposes of the U.S. Internal Revenue Code of 1986, as amended (“Code”) and the regulations promulgated thereunder; it is not relevant to other shareholders.

Although dividends, generally, are subject to tax in the United States as ordinary income, the code provides for a reduced federal income tax rate imposed on “qualified dividends”. Awilco Drilling PLC cannot guide its U.S. shareholders on how Awilco Drilling PLC’s dividends should be classified; however, the following information may be of interest to shareholders or their tax advisors.

Based on the review of Awilco Drilling PLC’s consolidated financial statements for the taxable years 2012, 2013, and 2014 conducted for determining whether Awilco Drilling PLC is considered a "passive foreign investment company" ("PFIC") for U.S. federal income tax purposes, it appears that, for the taxable years 2012, 2013, and 2014, Awilco Drilling PLC did not satisfy the passive income or the passive assets thresholds set by the PFIC provisions of the Code.  However, the PFIC status of Awilco Drilling PLC is a fact-intensive determination that must be made on an annual basis after the close of each taxable year and will depend on the structure and activities of Awilco Drilling PLC, the composition of Awilco Drilling PLC’s assets and income and the value of Awilco Drilling PLC’s tangible and intangible assets from time to time. Therefore, there can be no assurance that Awilco Drilling PLC will not be considered a PFIC for the taxable year 2012, 2013, and 2014, or any other taxable year.

U.S. shareholders are urged to consult their own tax advisor regarding the tax consequences applicable to them with respect to their investment in Awilco Drilling PLC’s stock.