NEW DRILLING CONTRACT FOR BREDFORD DOLPHIN

9/25/2012 2:45 AM EST

Dolphin Drilling AS, a subsidiary of Fred. Olsen Energy ASA has subject
final approvals entered into a Letter of Award for the provision of the
semi submersible drilling rig Bredford Dolphin with an AGR coordinated
group of four oil companies for operation on the Norwegian Continental
Shelf. The contract is for an eight well drilling campaign with an
estimated duration of 570 days, with commencement in direct continuation
with current contract.

The operators have the right to extend the contract period with four
additional wells within 30th of June 2013. Subject to execution of the
first four optional wells, the operators have the right to extend the
contract with minimum additional five wells within contract
commencement.

The estimated contract value for the firm period is approximately USD
252 million.