Ithaca Finalizes Acquisition of Cook Stake from Hess

- Ithaca Finalizes Acquisition of Cook Stake from Hess

Friday, August 26, 2011
Ithaca Energy Inc.

Ithaca announced that further to announcements on April 4, 2011 and May 16, 2011, the Company has completed the transaction to acquire a 28.46% non-operated interest in the Cook oil field ("Cook") from Hess Limited ("Hess"). At completion of the transaction, Ithaca paid an adjusted cash consideration of US $57 million and transferred to Hess a 10% interest in three Southern North Sea exploration blocks. The transaction has been funded from the Company's existing cash reserves.

At completion, Ithaca is also entitled to an oil inventory of approximately 185,000 barrels. This inventory is anticipated to be lifted and sold in Q4 2011. The adjusted consideration does not reflect this anticipated cash receipt.

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Bill Barret Finalizes DJ Basin Acquisition

- Bill Barret Finalizes DJ Basin Acquisition

Wednesday, August 17, 2011
Bill Barrett Corp.

Bill Barrett has closed its previously announced acquisition of properties in the Denver-Julesburg (DJ) Basin from an affiliate of Texas American Resources Company.

The DJ Basin acquisition includes a preliminary estimate of 7 million barrels of oil equivalent (MMBoe) net proved reserves, approximately 650 Boe per day net production and approximately 28,000 net acres of mineral leasehold, primarily on fee lands. The acquired properties currently have producing wells in the Wattenberg Field with production from the Codell, Niobrara and J Sands formations. Acquired exploration acreage is located predominantly in the Chalk Bluffs area just north of the Wyoming-Colorado border, neighboring the Hereford area just south of the border, where the Company intends to target oil in the Niobrara formation.

The DJ Basin acquisition was completed for approximately $150 million, subject to post-closing adjustments. The Company plans to initiate exploration and development of the Chalk Bluffs and Wattenberg areas, respectively, with a one-rig program beginning in October 2011.

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Australia Pacific LNG Finalizes Subscription Agreement with Sinopec

- Australia Pacific LNG Finalizes Subscription Agreement with Sinopec

Tuesday, August 09, 2011
Origin Energy Ltd.

Origin Energy advised that the Subscription Agreement facilitating the acquisition by Sinopec of a 15% ownership interest in Australia Pacific LNG has been completed.

In addition, all conditions precedent have now been met for the sale of 4.31 million tonnes of LNG per annum by Australia Pacific LNG to Sinopec, commencing in 2015.

Australia Pacific LNG received US $1.765 billion for the 15% ownership interest. As a consequence, ConocoPhillips' and Origin Energy's ownership interest in Australia Pacific LNG has been diluted to 42.5% each.

This investment by Sinopec provides a net reduction in funding requirements of US $750 million to each of Origin and ConocoPhillips (being 42.5% of US $1.765 billion).

Origin Managing Director and Chairman of Australia Pacific LNG, Mr. Grant King said, "We officially welcome Sinopec to Australia Pacific LNG as a shareholder and foundation customer. We look forward to working alongside ConocoPhillips and Sinopec to deliver the Australia Pacific LNG project, drawing on the extensive experience and capabilities within the joint venture in CSG production, development and operation of LNG facilities."

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Black Raven Finalizes Stake in Adena Field

- Black Raven Finalizes Stake in Adena Field

Tuesday, August 02, 2011
Black Raven Energy Inc.

Black Raven has completed the purchase of an 80% working interest in the Adena Field, consisting of 18,760 gross acres in Morgan County, Colorado, for a purchase price of $15.75 million. The Company will operate the field. The Company has entered into an agreement with a strategic partner which will provide geological, engineering, and management services associated with this project and will earn 24% of the Company's working interest after payout of all costs, including financing.

The Adena Field produces oil from a waterflood in the J sand and conventionally from the D sand. The Company estimates that the proved and probable oil reserves associated with this field are in excess of 3 million barrels from both formations. In addition, a gas cap in the J sand is estimated to hold more than 3 billion cubic feet of recoverable natural gas. Having produced 75 million barrels of oil equivalent from the J sand since its discovery in 1953, the Adena Field is one of the most prolific oil fields in the history of the D-J Basin. The majority of this field was abandoned during the mid 1980's after oil prices collapsed, and only a small portion has been re-activated. The Company intends re-activate the J sand waterflood and exploit the D sand, which has been largely untapped.

Black Raven's CEO, Thomas E. Riley, commented, "We are very pleased to complete this acquisition. We have been working on this for several months, and have been very pleasantly surprised at the wealth of opportunities presented by this acquisition. For a small company with a great technical staff, this field will provide growth in oil and natural gas production for the foreseeable future."

The acquisition was financed by Carlyle Energy Mezzanine Opportunities Fund, New York, New York. The Company was advised on the acquisition and financing by Stifel Nicolaus Weisel.

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Mesa Energy Finalizes TNR Acquisition

- Mesa Energy Finalizes TNR Acquisition

Wednesday, July 27, 2011
Mesa Energy Holdings Inc.

Mesa Energy has completed the acquisition of Tchefuncte Natural Resources (TNR), a Louisiana operator that owns and operates producing properties in five fields in Plaquemines and Lafourche Parishes, Louisiana. TNR is now a wholly-owned subsidiary of Mesa Energy, Inc. which is a wholly-owned subsidiary of the Company.

TNR owns the Lake Hermitage Field in Plaquemines Parish, Louisiana. Current production at Lake Hermitage averages approximately 160 barrels of oil and 240 mcf of gas per day. Total mineral acreage held by production is approximately 3,578 acres. A third party engineering report prepared by Collarini Associates places the value of total Proved reserves using a discount rate of 10% (PV-10) at approximately $15.25 million with Proved Developed Producing reserves of $5.24 million. Probable reserves are estimated at $10.65 million.

In addition, immediately prior to the Company closing the TNR acquisition, TNR completed the acquisition of properties in four fields in south Louisiana from Samson Contour Energy E & P, LLC (Samson). These properties have aggregate net production of approximately 160 barrels of oil and 1,080 mcf per day of gas from thirteen producing wells. Mesa believes there are a number of re-completion and workover opportunities in these fields as well as new offset developmental drilling and deep gas potential. All of these potential opportunities are currently being evaluated.

"This is a significant step forward for the Company and its shareholders as we intensify our focus and growth strategy toward the acquisition of existing producing oil properties in an effort to expand and diversify our asset base," said Randy M. Griffin, CEO of Mesa Energy Holdings, Inc. "These properties have substantially increased our reserve base and will add significant monthly net revenue and cash flow, thereby increasing shareholder value."

"We are currently evaluating other producing oil and gas properties in the area and hope to complete additional acquisitions of this nature in the next twelve months," added Griffin.

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Doxa Finalizes Interest Acquisition in Tx. Proj.

- Doxa Finalizes Interest Acquisition in Tx. Proj.

Monday, July 25, 2011
Doxa Energy Ltd.

Doxa has closed on the acquisition of a 16.70625% interest in the County Line North Project, McMullen County, Texas, a new venture targeting various Wilcox formation zones of interest. The County Line North Project, operated by Hurd Enterprises, Ltd., of San Antonio, Texas, is a conventional gas condensate prospect which is situated on an initial 280 acre block of leases. Drilling of the Kynette No. 1, the initial well on this project, has been commenced and is proceeding towards its permitted depth of 10,500'. Doxa owns 16.70625% working interest before payout, reverting to 12.5% after payout of this project, and expects its share of the leasehold and initial completed well cost to total approximately $500,000. This project is situated approximately 2 miles northeast of a recently announced successful completion, the Martin-State Gas Unit No. 1 well, a high rate Wilcox producer completed in the Campana, South (Wilcox 10,200') Field. Hurd Enterprises, Ltd. also operates the Martin-State well.

Doxa Energy Ltd. develops and maintains a portfolio of producing and developing conventional and unconventional assets, including the Eagle Ford shale oil window play in South Texas, and the recently announced acreage acquisition in the Mississippian Oil Play of northern Oklahoma.

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Petrominerales Finalizes Stake in Ocensa Pipeline

- Petrominerales Finalizes Stake in Ocensa Pipeline

Wednesday, July 20, 2011
Petrominerales Ltd.

Petrominerales has closed its previously announced acquisition of a five percent interest in the Oleoducto Central S.A. ("Ocensa") crude oil pipeline from Total E&P Holdings, for a purchase price of US $281 million.

The 830 kilometer Ocensa pipeline starts onshore at the Cusiana and Cupiagua fields and terminates at the port in Covenas on the Caribbean coast of Colombia. The Ocensa pipeline is presently running at capacity, transporting approximately 560,000 barrels of oil per day ("bopd") from the Llanos Basin, representing sixty percent of the current total oil production in Colombia.

Petrominerales expects to transport crude oil through the Ocensa pipeline commencing September 1, 2011, providing us with strategic access to transportation infrastructure. This acquisition is expected to lower our transportation costs compared to trucking for a significant portion of our Llanos basin production, especially in the near term given the limited existing transportation infrastructure in Colombia. In addition, increasing the volume of our oil transported by pipeline reduces risks associated with trucking oil and our exposure to escalating trucking costs.

The expansion of our infrastructure base through this acquisition enhances our marketing flexibility by improving our access to international crude oil markets and pricing, having the potential to further strengthen our netbacks. Along with our 9.65% interest in the Bicentenario pipeline (OBC), this acquisition supports our long-term corporate objectives by securing strategic transportation capacity for our growing base of production, including our heavy oil opportunities. The acquisition of an interest in Ocensa aligns with Petrominerales' corporate objective of continuing to be the highest netback producer in Colombia.

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Falcon Finalizes Beetaloo Basin Transaction with Hess

- Falcon Finalizes Beetaloo Basin Transaction with Hess

Wednesday, July 13, 2011
Falcon O&G Ltd.

Falcon O&G announced that the Beetaloo Basin Evaluation and Participation Agreement between Falcon Oil & Gas Australia Limited ("Falcon Australia") and Hess Australia (Beetaloo) Pty Limited ("Hess Australia") dated April 28, 2011 (the "Agreement") is now in effect and the seismic survey phase of the project will begin once the necessary regulatory permits are finalized.

On closing (July 13, 2011) Hess Australia made a US $17.5 million payment to Falcon Australia. Hess Oil and Gas Holdings Inc. ("Hess") also paid Falcon US $2.5 million and Falcon issued Hess a warrant exercisable for 10,000,000 common shares in the capital of Falcon ("Common Share") at a price of CDN $0.19 per Common Share for a period from November 14, 2011 until January 13, 2015. Upon receipt of all necessary regulatory permits, Hess Australia will commence the process of acquiring seismic data over Exploration Permits 76, 98 and 117 in the Beetaloo Basin, Northern Territory, Australia (the "Agreement Area"). After completion, processing and interpretation of the seismic data, Hess Australia may elect to acquire 62.5 percent ownership in the Agreement Area and continue to the next phase of the work program which includes conducting a five well program to explore and appraise the Agreement Area, beginning in 2012.

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Treaty Finalizes C&C Acquisition

- Treaty Finalizes C&C Acquisition

Thursday, July 07, 2011
Treaty Energy Corp.

Treaty Energy has fully paid off the acquisition of C&C Petroleum Management LLC.

Andrew V. Reid, Chairman and CEO of Treaty Energy Corporation, commented, "As of June 25, 2011, the C&C Petroleum Management LLC, acquisition was paid in full. We are all excited here at Treaty that we could accomplish the payoff of this acquisition eight months early and ahead of schedule. The $600,000 purchase price of C&C Petroleum was paid utilizing a combination of cash and stock. I am very pleased to have paid this acquisition off in the second quarter."

Mr. Reid commented further, "Our team at Treaty Energy continues to work diligently and earnestly to accomplish dramatic improvements in our company's net worth and operating profits, and this early payoff of the C&C acquisition and numerous other positive financial events will be reflected in our soon to be announced 2Q results."

Finally, Mr. Reid commented, "Treaty Energy stakeholders will see remarkable improvements in every aspect of our company over the balance of this year."

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Laredo Finalizes Broad Oak Acquisition

- Laredo Finalizes Broad Oak Acquisition

Wednesday, July 06, 2011
Laredo Petroleum Inc.

Laredo Petroleum has now completed the previously announced acquisition of Broad Oak.

The aggregate consideration paid was approximately $1 billion and consisted of approximately 2/3 of newly issued units of Laredo equity and 1/3 cash. The cash portion of the transaction was funded under Laredo's amended and restated $1 billion bank credit facility led by Wells Fargo Securities, LLC, BofA Merrill Lynch and J.P. Morgan Securities LLC, as joint lead arrangers. The amended and restated bank credit facility has an initial borrowing base of $650 million, of which $500 million was borrowed and outstanding following the closing of the acquisition.

This acquisition increases Laredo's size and positions it for continued growth in the oil-rich Permian Basin and the liquids-rich Granite Wash play. On a pro forma basis giving effect to the acquisition, Laredo has:

• total proved reserves of 840 Bcfe, consisting of 49 million barrels of crude oil and 547 Bcf of natural gas, as of March 31, 2011;
• average daily combined production of 130 MMcfe for the three months ended March 31, 2011, consisting of 40% crude oil and 60% natural gas plus associated natural gas liquids;
• a land position consisting of approximately 489,000 gross acres (338,000 net acres); and
• a total of 12 operated drilling rigs running, with eight drilling vertical wells and four drilling horizontal wells. Ten of these rigs are working in the Permian Basin and two in the Granite Wash play located in the Anadarko Basin.

The Broad Oak properties are concentrated on a contiguous land position located in the Permian Basin of West Texas primarily in Reagan County. This acreage is immediately south of, and on trend with Laredo's existing Permian Basin properties in Howard and Glasscock Counties. The combined acreage position in the Permian Basin consists of approximately 166,000 gross acres (126,000 net acres).

Randy Foutch, Laredo's Founder, Chairman and CEO said, "We welcome the Broad Oak employees to the Laredo team and intend to continue the active development and exploration of the combined company's attractive property base."

Tudor, Pickering, Holt & Co. Securities, Inc. served as financial advisor to Laredo. J.P. Morgan Securities LLC served as financial advisor to Broad Oak.

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Parex Finalizes Llanos Basin Acquisition

- Parex Finalizes Llanos Basin Acquisition

Wednesday, June 29, 2011
Parex Resources Inc.

Parex Resources has successfully closed the previously announced acquisition of a company which holds the 50% interest Parex does not already own in four Llanos Basin blocks in Colombia, including the Kona discovery on Block LLA-16, for approximately US $255 million in cash, net of closing adjustments.

The acquired assets are currently producing approximately 3,100 barrels of light oil per day ("bopd"). With the close of the Acquisition Parex is currently producing approximately 6,200 bopd. Further, post acquisition Parex anticipates that forecast capital expenditures, excluding the costs of the acquisition, to range between US $125 million and US $140 million, and year-end exit rate production to be in excess of 14,000 bopd.

The Acquisition was funded through a bought deal financing (the "Offering"), pursuant to which the Company issued 31.05 million subscription receipts of Parex (the "Subscription Receipts") at CDN $7.00 per Subscription Receipt for gross proceeds of CDN $217.35 million and CDN $85.0 million aggregate principal amount of 5.25% extendible convertible unsecured subordinated debentures of Parex (the "Debentures"), for total combined gross proceeds of CDN $302.35 million. The Offering was co-led by FirstEnergy Capital Corp. and Scotia Capital Inc., and included Haywood Securities Inc., CIBC World Markets Inc., Peters & Co. Limited, Raymond James Ltd., RBC Capital Markets and TD Securities Inc.

In conjunction with the closing of the Acquisition each Subscription Receipt has been automatically converted into one common share of Parex ("Common Shares") without any further action on the part of the holder and without payment of additional consideration. The maturity date of the Debentures has been automatically extended from the initial maturity date of July 15, 2011 to June 30, 2016.

Also in connection with the closing of the Acquisition, the Company has made application to the TSX Venture Exchange ("TSXV") to de-list the Subscription Receipts from trading on the TSXV, effective immediately and the Subscription Receipts have been halted from trading. The Common Shares into which the Subscription Receipts have been converted will be listed and posted for trading on the TSXV on the opening of the market on Monday, July 4, 2011. With the conversion of the Subscription Receipts there are approximately 108.2 million Common Shares outstanding.

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Petsec Finalizes Interest Sale in China JV

- Petsec Finalizes Interest Sale in China JV

Thursday, June 23, 2011
Petsec Energy Ltd.

Petsec advised that the final tranche of consideration in respect of the sale of its China Joint Venture interest has been received. The transaction was completed under the previously announced Sale and Purchase Agreement whereby Horizon Oil acquired Petsec's wholly owned subsidiary, Petsec Petroleum LLC, which held the Company's 25% working interest in the Block 22/12 Beibu Gulf project in China.

The sale for A$38 million in cash, plus 15 million Horizon share options with an exercise price of A$0.37, follows Petsec's previous announcements that it is debt free after eliminating US $100 million of debt over the past three years.

Petsec Energy Ltd's Chairman, Mr Terry Fern, said the Company will use the sale proceeds to fund the expansion and transition of its existing USA oil and gas operations to onshore areas of the USA, and to participate in the rapidly expanding shale oil industry.

"The Company's strategy is to not only move into areas where the shale source rocks are oil-prone but also to continue with our structured transition to a greater focus on exploration for liquid rich reserves in general," Mr. Fern said.

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Valiant Finalizes Sagex Deal, Reports Drilling Date for License P471

- Valiant Finalizes Sagex Deal, Reports Drilling Date for License P471

Friday, June 17, 2011
Valiant Petroleum plc

Valiant provided the following update with regard to its offer to the shareholders of Sagex to acquire the entire issued and to be issued share capital of Sagex for a total consideration of NOK 64.1 million (£7.1 million).

As at the close of the Offer on June 10, 2011 Valiant had received acceptances in excess of 94% of the total number of voting shares in Sagex on a fully diluted basis, significantly in excess of the two thirds acceptance condition. Working in close collaboration, Valiant and Sagex have also made progress on seeking all necessary corporate, third party and regulatory consents, which remain key conditions to the Offer. Valiant remains confident that the transaction will reach completion ahead of the long stop date of August 31, 2011.

Reflecting the significant progress on moving the Offer towards completion, an interim board of directors of Sagex was elected via an Extraordinary General Meeting on June 14, 2011 comprising representatives of two of Sagex's major shareholders and Sandy Shaw, an executive director of Valiant.

Valiant has also been informed by Sagex that the first of its two planned Norwegian exploration wells is anticipated to commence operations on License P471 by early August 2011. The well will be drilled by the Borgland Dolphin semi-submersible rig and target Chamonix, a potentially large Cretaceous stratigraphic prospect, and the secondary Cortina target of Jurassic age. Sagex holds a 20% working interest and the license partners are OMV (50%, operator) and Noreco (30%).

Further updates on the Offer will be provided in due course.

Peter Buchanan, CEO of Valiant, commented, "We would like to take this opportunity to thank the outgoing Sagex board of directors for their hard work and professionalism over the past few months, which has made Valiant's offer for Sagex possible. We look forward to working towards successful completion of the Offer with both Sagex's management team and new board of directors."

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TransAtlantic Finalizes TBNG Purchase

- TransAtlantic Finalizes TBNG Purchase

Wednesday, June 08, 2011
TransAtlantic Petroleum Ltd.

TransAtlantic has closed on the previously announced acquisition of Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG"). TransAtlantic Worldwide, Ltd., a wholly owned subsidiary of the Company, acquired 100% of the shares of TBNG from Mustafa Mehmet Corporation ("MMC") in exchange for 18,500,000 of the Company's common shares, the transfer of certain overriding royalty interests (ranging from 1.0% to 2.5% of the working interests owned by TBNG on specified exploration licenses) to an affiliate of MMC and $10.0 million in cash, which was paid in November 2010 as an option fee and applied to the purchase price at closing.

With the acquisition, the Company has effectively acquired 41.5% of the total production (approximately 10.0 million cubic feet of natural gas per day, before royalty) and acreage of TBNG and Pinnacle Turkey, Inc. ("PTI") as well as all of the oilfield service assets of TBNG. The acquisition of TBNG closed contemporaneously with the closing of the purchase of PTI by Pinnacle Turkey Holding Company, LLC ("Pinnacle") and the purchase of another affiliate of MMC by Valeura Energy, Inc. ("Valeura"). Valeura and Pinnacle have effectively acquired 40.0% and 18.5%, respectively, of the production, acreage, and other assets held by TBNG and PTI.

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Black Elk Finalizes PSA in GOM

- Black Elk Finalizes PSA in GOM

Monday, June 06, 2011
Black Elk Energy Offshore Operations, LLC

Black Elk has closed on its Purchase & Sale Agreement with a private equity company to acquire 40 fields with current production of approximately 8,200 net BOEPD. This acquisition includes a geographically diversified set of Gulf of Mexico assets with significant proved non-producing and proved undeveloped opportunities. This transaction represents the eighth acquisition by Black Elk since 2008. The purchase includes 399 wells, with an estimated 20 net million barrel equivalent of proven reserves.

"This acquisition shifts Black Elk Energy into the next level within the oil and gas industry. Black Elk has once again doubled in size within a very short time frame and this acquisition moves us into the top Quartile of Private E & P producers within the United States," said John Hoffman, President and CEO of Black Elk Energy. "Though I see continued growth for our company, our level of commitment to safety and the environment will not change as our portfolio expands. We will continue to apply our experienced exploitation skills to our enhanced asset base while fully-employing our operating expertise. This acquisition is a step forward in Black Elk's focus within the Gulf of Mexico and is consistent with our pledge to deliver resources to satisfy America's growing energy needs." Future drilling and recompletion projects within these new fields and current properties within Black Elk's asset portfolio hold substantial resource potential for the company and highlight a very positive road ahead.

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Nautical Finalizes Stake Acquisition in UKCS License

- Nautical Finalizes Stake Acquisition in UKCS License

Friday, May 20, 2011
Nautical Petroleum plc

Nautical Petroleum announced the completion of the acquisition of an additional 15% interest in UKCS License P1077 Blocks 9/2b and 9/2c (the "License), which includes the Kraken discovery, from Canamens Energy North Sea Limited.

The transaction has received approval from the Department of Energy and Climate Change and joint venture partners. The effective completion date of the transaction is May 18, 2011.

Nautical now has a 50% interest in the License.

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Faroe Finalizes Acquisition of Blane Field

- Faroe Finalizes Acquisition of Blane Field

Tuesday, May 17, 2011
Faroe Petroleum plc

Faroe has completed the acquisition of the 18.0% interest in the Blane oil field from ENI UK Limited and ENI ULX Limited.

Graham Stewart, Chief Executive of Faroe Petroleum plc, commented, "The acquisition of a material interest in the high quality producing Blane oil field significantly boosts Faroe's oil and gas revenue generation capacity and is very tax efficient for the Company."

"The transaction which adds approximately 1,900 barrels of oil equivalent per day (boepd) to Faroe's production, is in line with our strategy to grow and strengthen the production base towards funding the ongoing exploration program."

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KazMunaiGas Finalizes Transaction for Ural Stake

KazMunaiGas Finalizes Transaction for Ural Stake

Tuesday, April 19, 2011

JSC KazMunaiGas Exploration Production

KazMunaiGas announced the closing of the transaction to acquire a 50% stake in Ural Group Limited (UGL) from Exploration Venture Limited (EVL). UGL owns the exploration license for the block Fedorovskiy through 100% stake in LLP "Ural Oil and Gas" (UOG).

As previously announced, the deal price was subject to adjustment for EVL's work program financing obligations until the deal close. The final acquisition price is US $164.4m, including US $61.3m for shares and US $87.8m of shareholder loans (as of January 1, 2010) and US $15.3m - adjustment for EVL's work program financing until the deal close (2010 and 1Q11).

Earlier the acquisition was approved by the Board of Directors of KMG EP and the Board of Directors of EVL. All regulatory approvals have also been received.

Seadrill Finalizes $4.1B Deal with North Atlantic Drilling

Seadrill Finalizes $4.1B Deal with North Atlantic Drilling

Monday, April 04, 2011
Seadrill Ltd.

Seadrill announced that North Atlantic Drilling's acquisition of our harsh-environment drilling activities was successfully completed on March 31, 2011. Closing of the transaction took place in line with the initial agreement after North Atlantic Drilling successfully completed a private placement of 250,000,000 new shares in February and secured a US $2.0 billion loan facility.

The US $4.1 billion purchase price to Seadrill was settled by North Atlantic assuming approximately US $2.0 billion in existing debt and payment obligations. This will be refinanced by drawing down the loan facility mid April.

The loan facility will have a six-year tenor with a balloon installment of US $1.0 billion at maturity. The loan will have a cost of Libor plus 2.0% margin, which is lower than anticipated in the original presentation.

Furthermore, North Atlantic Drilling has issued a US $500 million seven-year bond loan with a coupon of 7.75%, subscribed for in full by Seadrill as part of the settlement. Seadrill intends to resell the bond in the market.

The remaining part of the purchase price has been paid in cash and shares.
As a consequence of the closing, the right for North Atlantic Drilling's shareholders to put their North Atlantic Drilling shares to Seadrill at the original issue price of US $1.70 per share will expire at close of business Oslo time on April 14, 2011, i.e. 10 working days after closing of the Acquisition Agreement.

All 1,050 employees involved in the operations of the five existing operating units have accepted to be transferred from Seadrill to North Atlantic Drilling.

North Atlantic Drilling will, effective from April 1, have five drilling units in operation. North Atlantic Drilling's sixth rig, the West Elara, is expected to be delivered from the Jurong Shipyard during the second quarter 2011 and will then commence drilling operations under a contract with Statoil in the North Sea. Seadrill has furthermore decided to offer the recently ordered harsh environment jack-up drilling rig West Linus, which will be delivered in 2013, to North Atlantic Drilling at its cost. The unit has a five year drilling contract in place for operations in Norway for ConocoPhillips. It is anticipated that the acquisition of West Linus including the contract coverage can be completed without raising additional equity.

North Atlantic Drilling has issued 750 million new shares to Seadrill at a subscription price of US $1.70. North Atlantic Drilling has after the transaction 1.0 billion shares issued of which Seadrill holds 75%. The company has currently 1,190 shareholders. Of which 391 are employees in North Atlantic Drilling.

The Board of North Atlantic Drilling has subsequent to the successful completion of the acquisition agreement decided to proceed with a listing of the company's shares on the Oslo Stock Exchange. The aim is to complete the listing in the third quarter 2011.

Alf C Thorkildsen, CEO in Seadrill Management AS, said, "We are pleased to have secured the necessary financing for North Atlantic Drilling and completed the acquisition agreement in line with an ambitious schedule. This marks an important starting point for North Atlantic Drilling which will now commence operations with its rigs. We look forward to develop North Atlantic Drilling further and believe the company is well positioned to take active leadership in a further consolidation of the fast growing market for harsh-environment drilling units."