Presentation Year End 2001

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Market Profile Business Strategy Company Overview Rig Profiles Future Plans Appendix

Presentation Year End 2001

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Market Profile Business Strategy Company Overview Rig Profiles Future Plans Appendix Page 2 of 28

Q4 2001 - Group Result

0.95 0.50 Kontantstrøm pr. Aksje 11.49 9.47

Bokf ørt egenkapital pr. aksje

(2.05) (0.98) Resultat pr. aksje (92,241,537) (44,884,128) (39,347,196) 9,895,239 Årsresultat 2,974,171 50,597,053 2,974,171 50,597,053 Skattekostnad (95,215,708) (95,481,181) (42,321,367) (40,701,814)

Ordinært resultat før skattekostnad

(52,243,201) (42,483,767) (21,311,407) (14,840,683) Annen f inanskostnad/disagio (64,547,515) (71,552,228) (21,057,427) (19,579,126) Annen rentekostnad 6,621,624 12,889,550 6,621,624 7,539,572 Annen f inansinntekt 737,904 1,729,485 737,325 1,485,659 Annen renteinntekt (28,929,409) 7,898,147 (5,292,845) 190,012

Inntekt fra investering i tilknyttet selskap

43,144,889 (3,962,368) (2,018,637) (15,497,248) Driftsresultat (208,930,782) (182,854,583) (60,525,700) (62,345,170) Sum driftskostnader (75,203,125) (65,381,020) (31,265,143) (32,717,429)

Annen drif tskostnad

(133,727,657) (117,473,563)

(29,260,557) (29,627,741)

Ordinære av skriv ninger

252,075,671 178,892,215 58,507,063 46,847,922 Sum driftsinntekter 252,075,671 178,892,215 58,507,063 46,847,922 Salgsinntekt 2000 2001 2000 2001 RESULTAT REGNSKAP Året Året 4. kvartal

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Main Effects on Year End Results

• NOK 35 mill related to downtime DS Valentin Shashin November

• NOK 30 mill related to upgrading, mobilisation of SS Petrolia

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Q4 2001 - Group Balance (1/2)

1,372,167,724 1,427,961,469 Sum eiendeler 89,063,081 96,969,814 Sum omløpsmidler 9,850,535 8,185,527

Bankinnskudd, kontanter og lignende

79,212,546 88,784,287 Sum fordringer 70,231,605 57,265,091 Andre f ordringer 8,980,941 31,519,196 Kundef ordringer Fordringer Omløpsmidler 1,283,104,643 1,330,991,655 Sum anleggsmidler 100,557,590 120,387,587

Sum finansielle anleggsmidler

100,557,590 115,387,587

Inv estering i tilknyttet selskap

5,000,000 Inv estering i aksjer

Finansielle anleggsmidler

1,178,873,834 1,156,394,710

Sum varige driftsmidler

97,336,119 118,919,170

Annet utstyr

879,395,396 805,509,754

Boreskipet MV Valentin Shashin

202,142,319 231,965,786 Riggen SS Petrolia Varige driftsmidler 3,673,219 54,209,358

Sum immaterielle eiendeler

3,673,219 54,209,358

Utsatt skattef ordel

Immaterielle eiendeler Anleggsmidler

31/12/2000 31/12/2001

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Q4 2001 - Group Balance (2/2)

1,372,167,724 1,427,961,469

Sum egenkapital og gjeld

857,288,708 996,100,432

Sum gjeld

92,187,843 94,201,246

Sum kortsiktig gjeld

68,299,156 45,591,930

Annen kortsiktig gjeld

76,158 Betalbar skatt 23,812,529 48,609,316 Leverandørgjeld Kortsiktig gj eld 765,100,865 901,899,186

Sum annen langsiktig gjeld

308,554,733 383,898,270

Øvrig langsiktig gjeld

366,546,132 335,230,916

Gjeld til kredittinstitusjoner

90,000,000 182,770,000

Konvertibelt obligasjonslån Annen langsiktig gj eld Gjeld

514,879,016 431,861,037

Sum egenkapital Egenkapital

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Booked Equity as per 21.02.02 USD 52 mill (NOK 471 mill)

Ves sels Booked Value Market Value

SS Petrolia USD 26,300,000 USD 35,000,000

SS Deepsea B ergen (20,19%) USD 12,500,000 USD 22,000,000 DS Valentin Shahsin USD 94,800,000 USD 100,000,000 Other equipment (ris er / top drive / BOP) USD 10,300,000 USD 20,000,000

SUM USD 143,900,000 USD 177,000,000

Debt

SS Petrolia USD 17 000 000

SS Deepsea Bergen (20,19%) USD 18 000 000

DS Valentin Shahsin USD 36 000 000

Convertible Loan USD 20 000 000

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Net Asset Values (NOK per share)

(a) Based on the following rig values: SS Petrolia = $35 million; SS Deep Sea Bergen = $100 million (PDR’s share = $21,9 million; DS Valentin Shashin = $100 million; spare drilling equipment = $20 million. (b) Based on the following rig values: SS Petrolia = $60 million; SS Deep Sea Bergen = $137 million (PDR’s

share = $30 million; DS Valentin Shashin = $130 million; spare drilling equipment = $20 million.

2.85 9.5 16 29.4 0 5 10 15 20 25 30 35 Share Price (Feb' 01) Book value of equity

Net asset value (2001)(a)

Net asset value (1997)(b)

NO

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• Petrolia Drilling ASA, a Norwegian, publicly listed limited

Company established March 17 1997, owns and charters

drilling vessels for offshore, deepwater oil and gas

exploration and development drilling.

• Predecessor company formed by principals of DNO ASA

in 1995.

• DNO ASA holds approx. 39% of outstanding shares (total

of 45 mill.).

• The Company has a market capitalization of

approximately NOK 120 million, as per February 2002.

Company Overview

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Operation and Business Management

Head Office

Bergen

Base Office

Macae, Brazil

Base Office

Aberdeen, UK

Odebrecht

Oil & Gas

Maersk

Contractors

Hands-on controlling

Odfjell Drilling

(Deepsea Bergen)

Business Strategy

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Petrolia Drilling’s Conclusions

Past

· Poor market due to lack of investment from oil companies

· Invested in re-activation and mobilisation of vessels for contracts

Future

· All vessels upgraded , reactivated, classed and drilling.

· Valentin Shashin on long term contract until 2003 (market outlooks give higher dayrates)

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February 2001

• 2 year contract extension for DS Valentin Shashin / Petrobras

• USD 100’ per day incl. Bonus / OPEX USD 40’

July 2001

• 1 (+2) well contract for SS Petrolia / DNO

• USD 65’ per day (option USD 40’/day)

• (Off contract 15 December 2001 / Lay up cost USD 7’ / day)

Key Events last year

February 2002

• 9 month contract for SS DeepSea Bergen

• USD 110’ per day / OPEX USD 65’

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Petrolia Drilling Fleet

SS Petrolia

DS Valentin Shashin

SS Deep Sea Bergen

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SS Petrolia

Description

2. generation

Pentagone-class

Semisubmersible

Upgraded

1991 / 2001

CFEM, France

Market Segment

Medium water depth

1.200 ft

Class / Flag

DNV +1A1 / Liberia

Charter Party

N/A

Charter Type

N/A

Dayrate

Cost per day

USD 7.000 (lay up)

Manager

Maersk

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SS Deep Sea Bergen

Description

3. generation

Aker H-3.2

Semisubmersible

Built

1983 (upgraded 2000)

Aker Verdal / BMV

Market segment

Medium water depth

1.500 ft

Class / Flag

DNV +1A1 / Norway

Charter Party

RWEDA / Amerada

Charter Type

4 wells

Dayrate

USD 110.000 (T/C)

Cost per day

USD 65.000

Manager

Odfjell Drilling

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Tight market for Semisubme rsibles in the North Sea

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Jan. 12 estimate

Utilisation of 95%

Summer 2001

Tot. # of rigs

Total rig fleet of 46, whereof 44 are on the market.

Max. utilisation of 88%

Summer 2000

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DS Valentin Shashin

Description

Drillship

IHC Gusto design

Pelican Class DP

Built

1982 (upgraded 1998-99)

Rauma Repola, Finland

Market Segment

Deep Water

4.500 ft (can be upgraded

to 6000 ft)

Class / Flag

**DNV ICE 1A* / Barbados**

Charter Party

Petrobras

Charter Type

Bareboat

Charter Expiration March 2003

Dayrate

USD 100.000

Cost per day

USD 40.000

Manager

Odebrecht

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Market Profile

Brazil

l

Most mature deepwater market in the world

l

Petrobras has announced its aim for 1,5 mill. Barrels / day to cover

national consumption. Today’s level is approx. 11-1200 barrels / day.

l

Petrobras is the largest customer of deepwater drilling equipment

l

Petrobras monopoly has been broken

l

Petrobras has an estimated 16 joint venture deepwater exploration

blocks with international operators

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34,0

26,0

14,0

9,0

40,8

28,8

31,7

16,0

83,0

117,3

0

20

40

60

80

100

120 Total

US Gulf

Brazil

W. Africa

Other

Supply

Demand

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Petrobras Press Release

08/01/2001 7:11 PM Increase in domestic petroleum production

PETROLEUM PRODUCTION INCREASED BY 8% IN JUNE

The petroleum domestic production in June achieved 1,338,491 barrels per day,

8% higher than the 1,242,324 bpd from the previous month. The reasons for this

growth were both the improvement of Campos Basin operational efficiency and

the operational startup of another well in Marlim Field (MRL-126), with a flow of

12 thousand barrels/day.

To increase its domestic production, Petrobras needs to produce its fields in deep and

ultra-deepwaters. In 2005, the Company plans to reach a 1.9- million bopd production in Brazil and

to have nearly 75% of it from deep and ultra-deepwaters.

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Petrolia Drilling’s Strategy

Long Term

· Specialize in deep water

Challenges / Threats

· Pursue expansion of fleet / Merger and acquisitions

Medium Term

· Develop joint marketing and operating arrangements with established local partners

· Secure long term contracts, at the right time, with the world’s major oil and gas companies

· Oil price

· Focus on key growth markets [West Africa, Brazil, others]

· Optimize share value over time

(21)

(22)

Market Profile

Energy demand and offshore market fundamentals are

favorable and improving

l

Oil demand growing 2 – 3% per year; crude oil prices

have improved by 250% since beginning of 1999

l

Offshore production expected to increase 6% per year

l

Deep water drilling is fastest growing area of rig

demand within offshore sector

l

Deep water activity maintained even at low oil prices

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Market Profile

–

Begins in water depths of about 3,000 feet extending to maximum water

depths of approximately 10,000 feet; current drilling record is in excess of

9,000 feet in offshore Brazil

–

Relatively new market with few fields at water depths >3,000 feet

developed before 1994

–

Deepwater market is the strategic target for the oil majors:

• Deep water fields are only remaining sources of “elephant” finds.

• Technological innovation has made it economically feasible to produce

hydrocarbons in deep waters e.g. Elf’s Girassol discovery has estimated all- in

costs of $6.00 per barrel

• Fields are outside of OPEC

–

Major deep water drilling markets include West Africa, Brazil, U.S., Gulf

of Mexico, East Coast of Canada and the North Sea

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Market Profile

Petroleum consumption continues to grow at a consistent rate

regardless of economic cycles

55 60 65 70 75 80 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000E 2001E Total World Demand Total World Supply

Worldwide Petroleum Supply and Demand Balance (Million Barrels per day)

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Market Profile

$12,2 $17,9 $27,2 $22,2 $20,3 $19,4 $20,5 $22,5 $24,0 $22,5 $23,5 $26,0 $29,0 $0,0 $5,0 $10,0 $15,0 $20,0 $25,0 $30,0 $35,0 $ B a r r el

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

Source: Bassoe Offshore Consultants

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Market Profile

0 5 10 15 20 25 30 $35 Jan-99 Feb-99 Mar-99 A pr-99 May-99

Jun-99 Jul-99 Aug-99 S ep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 250 275 300 325 350 375 400 Stock P ri ce (1 ) (1)

Spot Price of Crude Oil (WTI)

($ / Barrel)

Stock of Crude Oil (U.S.)

(In Million Barrels)

(1) Based on weekly average.

Source: Weekly Petroleum Status Report, Energy Information Administration

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Market Profile

-15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0%