Private Placement

Awilco Drilling Limited (or the Company) announces today that it is in the process of raising approximately USD 60 million through a private placement. A minimum of 15,000,000 and a maximum of 16,000,000 shares will be offered at a price which will be determined through a book building process with an indicative range of NOK 22 to 25.

The private placement is expected to close on 1 October 2010 at 16:00 CET, subject to earlier close or extension.

The private placement is the first part of the raising of in total approximately USD 70 million required for the upgrading of the Company’s two drilling rigs. The second part will be raised in connection with the planned listing on Oslo Stock Exchange (Oslo Axess) early 2011.

Arctic Securities ASA and Fearnley Fonds ASA are acting as joint-lead managers and joint book runners.

Important Note:

This announcement does not constitute or form part of an offer to sell or the solicitation of an offer to subscribe for any securities of Awilco Drilling Limited.

This press release is not being issued in or to the United States of America, Canada, Australia, Japan or in any other jurisdiction in which such distribution would be prohibited by applicable law. This press release does not constitute or form part of an offer or solicitation of an offer to purchase or subscribe for securities in the United States. The securities referred to herein will not be registered under the United States Securities Act of 1933, as amended, (the “Securities Act”) or any state securities laws, and will be offered within the United States in reliance upon an exemption from the registration requirements in the Securities Act, and to certain non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act. The securities may not be offered or sold in the United States except pursuant to an applicable exemption from registration.

Arctic Securities ASA and Fearnley Fonds ASA are acting for Awilco Drilling Limited and no one else in connection with the offer of the shares and will not be responsible to any other person for providing the protections afforded to their client, or for providing advice in relation to the proposed offer of the shares.