PRELIMINARY RESULT AS PER 4TH QUARTER 2009

Operation and business management

Petrojack ASA had one jack-up rig under construction (Petrojack IV) which was delivered in January 2009.
Petrojack IV has an operating water depth capacity of 375 feet and drilling depth capacity of approximately 30,000 feet. On the 23rd of Januray 2009, Petrojack IV started on a five years 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 had Petrojack II on contract with Saipem. The put/call option of sale of Petrojack II to Saipem was completed on the
12th of January 2009 at a sales price of MUSD 198.3.

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 has ordered an enhanced CJ70 jack-up rig from Jurong.

Larsen Oil & Gas ("LOG") is manager for Petrojack.


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 presented in USD for 4Q 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 5.83 at 30.09.08 to 7.00 as per 31.12.08. Unrealized gain on bond loans is included with mUSD 28.3 in the fourth quarter figures.

The contract with Saipem regarding PetroJack II was signed in February 2008 and the rig was accepted by Saipem April 2, 2008. The 4 years time charter contract had a put and call option structure after 1 year. The company has in the report for 2nd and 3rd quarter 2008 stated that the accounting of this contract will be concluded at year end. The contract will be presented as a financial lease in the annual accounts and the reported profit and loss for Q2 and Q3 are adjusted to reflect this in Note 4 to this report. The nominal value of the receivable on Saipem of MUSD 198,3 was received January 13th 2009 and the proceeds repaid bondholders according to the amended loan agreement. The year to date net profit of the sale of PetroJack II is MUSD 28.


Profit and loss
For the fiscal year 2008

Petrojack’s total revenues for the fiscal year 2008 was mUSD 34.3 compared to mUSD 0.7 for the fiscal year 2007. The revenues in 2008 came mainly from gain related to the put/call option in the agreement entered into with Saipem for Petrojack II with mUSD 28, profit from sale of equipment mUSD 4.4 and rental of drilling equipment.

Operating profit before depreciation was mUSD 21.3 for the fiscal year 2008 compared to mUSD -4.2 for 2007. The main explanation for the deviation between 2008 and 2007 operating profit is the accounting gain in accordance to IFRS from put/call option entered into with Saipem in 2008. Operating expenses of mUSD 12.9 includes primarily rig expenses of mUSD 6.7, expenses for management services under the contracts with LOG, and various other administrative expenses.

2008 operating profit was mUSD 17.8, compared to mUSD -7.2 in 2007.

Result from associated companies includes Petrojack’s share of the results from PetroProd Ltd and Petrolia Drilling ASA. Net result for the fiscal year 2008 is incorporated with mUSD -126.6 and mUSD -10.3 for the fiscal year 2007. Impairment on investment in shares is as of 31 December 2008 MUSD -81.3.

Net financial incomes for the fiscal year 2008 were mUSD 45.5 Net financial incomes include the effect of Petrojack’s change of functional currency from NOK to USD. The USD has during YTD 2008 increased resulting in an unrealized gain of mUSD 52.0 mainly related to the debt nominated in NOK. In YTD 2008 Petrojack incurred interests of mUSD 22.9 mainly related to a bond loan which was drawn up in Q2 2007 and interests on bond loan related to financing Petrojack II.

The net result for the fiscal year 2008 is mUSD -63.3 compared to -15.0 in 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.


Fourth quarter

Petrojack’s revenues in the fourth quarter 2008 was mUSD 4.4 compared to mUSD 0.4 in fourth quarter 2007. Revenues in the fourth quarter came from gain of sale of equipment.

Operating profit before depreciation was mUSD -0.3 in the fourth quarter 2008 compared to mUSD -1.3 in the fourth quarter last year. The main explanation for the deviation between Q4 2008 and Q4 2007 is income from gain of sale of equipment and rig expenses for mobilization of PetroJack IV.

Petrojack’s operating expenses of mUSD 4.8 includes primarily expenses for mobilization of Petrjack IV, management services under the contracts with LOG, and various other administrative expenses. Q4 2008 operating profit was mUSD -0.8, compared to mUSD -2.2 in Q4 2007.

Result from associated companies includes Petrojack’s share of the results from PetroProd Ltd and Petrolia Drilling ASA. Net result in Q4 is incorporated with mUSD -20.5 and mUSD -7.4 in Q4 2007.

Net financial income in Q4 2008 was mUSD 32.8. Net financial income includes the effect of Petrojack’s change of functional currency from NOK to USD. In Q4, net unrealized currency gain is mUSD 31.3 Interest expenses in Q4 2008 of mUSD 6.9 relates to a bond loan which was drawn up in Q4 2007 and interest from financing Petrojack II.

The net result for Q4 2008 was mUSD 11.5 and Q4 2007 mUSD -9.4. The difference is mainly from currency gain of NOK debt in Q4. Interest income and expenses related to the bonds for construction of the rigs are capitalized under the construction contract in the group balance sheet.

Enclosure : Preliminary result as per 4th quarter 2008.

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

Bergen/Oslo, 19 February 2009
Board of Directors