BYFORD DOLPHIN - NEW DRILLING CONTRACT

BYFORD DOLPHIN - DECLARATION OF OPTION AND NEW
DRILLING CONTRACT

Dolphin Drilling Ltd., a subsidiary of Fred
Olsen Energy ASA has received notice of
declaration from CNR International (U.K.) Ltd.
of the second and last option under the existing
drilling contract for drilling of one well of an
approximate duration of 100 days. The contract
value of the option is approximately 11.5 mill
USD.

Dolphin Drilling has also entered into agreement
with CNR on a further extension of the contract
of 275 days duration at a new day-rate. The
contract value of the extension is approximately
USD 54 mill. Commencement under the new contract
is estimated to October 2006.