PETROJACK ASA - PRELIMINARY RESULT AS PER 3rd QUARTER 2008

Operation and business management
Petrojack has one jack-up rig under construction at the Jurong Shipyard in Singapore and one jack-up rig on contract with Saipem. The jack-up rigs have an operating water depth capacity of 375 feet and drilling depth capacity of approximately 30,000 feet. The jack-up rig under construction will be delivered in January 2009.

In addition, Petrojack holds 24.98 % of Petrolia Drilling ASA. The investment gives Petrojack exposure to the strong semi market, which has continued to develop positively during 2006-2008, with improving day rates and rig utilization.

Petrojack also holds 36,958,800 shares in PetroProd Ltd, giving a total ownership of 42.3 %.

PetroProd intends to convert three Aframax tankers to FPSOs at Jurong, and has ordered an enhanced CJ70 jack-up rig from Jurong.
Larsen Oil & Gas ("LOG") is manager for Petrojack.

Construction progress
Petrojack’s original construction program included four rigs. However, two rigs were sold to Maersk in Q3-2006, for a total consideration of mUSD 420. Petrojack II was delivered from the yard according to schedule and on budget on the 28th of March 2008. There have been no significant lost time accidents regarding the remaining jack-up rig, and the construction process is developing according to schedule and on budget. The total rig construction cost for the remaining jack-up rig is mUSD 180 including project cost.

Contract situation
Petrojack II Pte Ltd, a subsidiary of Petrojack ASA, has together with the manager, Larsen Oil & Gas Ltd, entered into a charter agreement with Saipem for hire of Petrojack II. The contract for Petrojack has duration of four years, beginning 2 April 2008. The hire under the contract is USD 100,000 per day. The Charter Agreement includes a put/call option at a price of mUSD 199.1, on 28 March 2009. However, the Company has approached Saipem with the intention of pushing forward the exercise date of the put/call option to 25 January 2009. Final accounting reporting for the Petrojack II contract, with respect to IFRS and taxes, will be concluded at year end, and presented in the annual accounts.

Larsen Oil & Gas Pte Ltd, as drilling contractor, has on behalf of Petrojack IV Pte Ltd, a wholly owned subsidiary of Petrojack ASA, signed a drilling contract with PTT Exploration & Production Public Company Limited. Length of contract is 5 years at a rate of USD 151,000 per day. PetroJack IV will mobilize immediately following delivery from Jurong Shipyard.

Financial Information
(All figures in MUSD)
Petrojack has with effect from 01.01.2008 changed functional currency from NOK to USD in accordance with IFRS. The financial figures are also presented in USD as of 3Q 2008 and accumulated 2008. All comparative figures have for presentation purposes been changed to USD as presentation currency.
The financial data have been prepared in accordance with IFRS.
The current situation in the financial markets will impact the industry and available funding going forward.

Unrealized currency gain
USD versus NOK has increased from 5.08 at 30.06.08 to 5.83 as per 30.09.08. Unrealized gain on bond loans is included with mUSD 24.8 in the third quarter figures.

Impairment of investments in associates
The market price of the shares in Petrolia Drilling ASA and PetroProd Ltd has declined during the third quarter.
Due to the current financial turmoil and general market uncertainty the Board of Directors of Petrojack has impaired its Petrolia Drilling investments with mUSD 81.3 and PetroProd investments with mUSD 24.3 in the third quarter based on fair value assessments.

Profit and loss Year to date per 30.09.08
Petrojack’s total revenues YTD was mUSD 15.7 compared to mUSD 0.4 YTD 2007. Revenues came from rental of drilling equipment and time charter hire. TC is amounted to mUSD 14.9 YTD.

Operating profit before depreciation was mUSD 5.8 YTD compared to mUSD -3.0 YTD 2007. The main explanation for the deviation between YTD 2008 and YTD 2007 is the time charter hire from Saipem. Operating expenses includes primarily expenses for management services under the contracts with LOG, and various other administrative expenses.

YTD 2008 operating profit was mUSD -0.6, compared to mUSD -5.0 YTD 2007.

Result from associated companies includes Petrojack’s share of the results from PetroProd Ltd and Petrolia Drilling ASA. Net result YTD 2008 is incorporated with MUSD -0.5 and MUSD -2.9 YTD 2007. Impairment on investment in shares is as of 30 September 2008 MUSD -105.6.

Net financial incomes YTD 2008 were mUSD 3.2 Net financial incomes include the effect of Petrojack’s change of functional currency from NOK to USD. Petrojack’s debt nominated in NOK is converted to USD as of 30 September 2008. The USD has during YTD 2008 increased resulting in an unrealized gain of mUSD 20.5 mainly related to the debt nominated in NOK. In YTD 2008 Petrojack also incurred interests of mUSD 16.0 related to a bond loan which was drawn up in Q2 2007 and interest from a bond loan related to Petrojack II.

The net result YTD 2008 is mUSD -103.5 compared to -5.6 YTD 2007. Interest income and expenses related to the bonds for construction of the rigs are capitalised under the construction contract in the group balance sheet.

Enclosure : Preliminary result as per 3rd quarter 2008.

For further information please contact : Mr. Lars Moldestad, phone +47 906 99 197.

Bergen/Oslo, 18 November 2008
Board of Directors

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