Vantage Proposes Senior Notes Offer

- Vantage Proposes Senior Notes Offer

Friday, May 20, 2011
Vantage Drilling Co.

Vantage announced that its wholly-owned subsidiary Offshore Group Investment Limited (the "Issuer") intends to offer, subject to market and other conditions, $225.0 million in aggregate principal amount of 11 ½% Senior Secured First Lien Notes due 2015. The Notes will be offered as additional notes, commonly referred to as a "tack-on bond," under the indenture pursuant to which the Issuer previously issued $1.0 billion of 11 ½% Senior Secured First Lien Notes due 2015 in July 2010. The Notes will be guaranteed by Vantage and each of Issuer's existing and future subsidiaries and by certain of Vantage's other subsidiaries, and will be senior secured obligations of the Issuer and the guarantors.

The Issuer expects to use the net proceeds from this offering, if completed, to purchase from Vantage the wholly-owned subsidiaries of Vantage which own the Aquamarine Driller and related drilling contracts (the "Acquisition"), as well as for general corporate purposes. Vantage expects to use the proceeds from the Acquisition to (i) repay and terminate its outstanding term loan secured by the Aquamarine Driller, (ii) make the initial payment to Daewoo Shipbuilding and Marine Engineering Co., Ltd under Vantage's recently announced construction contract for an ultra-deepwater drillship, to be named the Tungsten Explorer and (iii) for general corporate purposes.

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Salamander Lines Up Vantage Rig Offshore Vietnam

- Salamander Lines Up Vantage Rig Offshore Vietnam

Friday, May 20, 2011
Salamander Energy plc

Salamander issued the following Interim Management Statement for the period from January 1, 2011 to May 18, 2011.

Highlights

• 2011 average production forecast maintained at 22-23,000 boepd
• Active E&A campaign during the period as part of a 13 well 2011 program
  • Drilling on the Dao Raung structure found significant gas column, follow-up drilling is underway
  • Technical analysis of Angklung-1 ongoing in advance of follow-up well in 4Q
  • 2D and 3D Seismic surveys completed on SE Sangatta confirming continuation of Angklung trend, in advance of well in 4Q
• Producing assets performance in line with expectations, development drilling underway at Bualuang oil field
• Reserves upgrade at Bualuang field: Ultimately recoverable proved & probable reserves increased 7 MMbo to 33.5 MMbo
• Contract signed for construction of Bualuang Bravo Platform
• Completion of new debt facility imminent

Exploration and Appraisal

Thailand

The Group completed one appraisal well during the period, the Dao Ruang-2 well in block L15/50, Northeast Thailand, while progressing its analysis of a follow up location on the Dao Ruang structure ahead of drilling during the current year. The well intersected a number of the targeted fracture zones with associated gas shows. Gas was seen all the way to TD, without any water, demonstrating a significant gas column in the Dao Ruang structure. An openhole DST was undertaken but only sub-commercial flow rates were recorded indicating a low permeability formation with a limited open, connected fracture network at the Dao Ruang-2 location. The Dao Ruang-3 well spudded at the end of April and is targeting an independent fault network in the Dao Ruang structure where it is hoped the well will encounter an open fracture network.

Offshore in block B8/38 in the the Gulf of Thailand, development drilling on the Bualuang platform is underway and the East Terrace prospect will be tested as part of this program. Exploration drilling elsewhere in the B8/38 block will follow the completion of development drilling.

Indonesia

The Group has been continuing its technical analysis of the Angklung-1 discovery well and the existing 3D seismic data in order to better understand and map the play systems in the Northern Kutei area. This analysis will assist in identifying the location of the follow up wells in the Bontang PSC planned for 4Q 2011, which will be aimed at appraising the gas play and exploring the oil play.

In the SE Sangatta PSC, adjacent to the Bontang PSC, the Group completed 2D and 3D seismic surveys during 1Q. The results of these surveys are now being interpreted, with early indications of a number of prospects on trend with the Angklung discovery, confirming the continuation of the prospective trend into the SE Sangatta license. A well on this license is planned for 4Q 2011.

In the Tarakan Basin the HPS-1 land rig has commenced mobilization to the South Sebuku-2 well site and is expected to spud during May 2011.

Vietnam

The Aquamarine Driller jackup rig has been contracted to drill the Cat Ba prospect, offshore North Vietnam. This well is expected to spud in July 2011.

Production and Development

The Group's producing assets have performed broadly to plan. During 1Q 2011 production averaged 19,434 bopd. The Group reiterates its average production forecast for 2011 of 22-23,000 bopd. The current development drilling program on the Bualuang oil field, Gulf of Thailand, incorporating six development wells, will drive increased volumes in the second half of the year.
During the first quarter the Group announced a reserves upgrade on the Bualuang field adding a further 7 MMbo of proved and probable (2P) reserves which take the ultimately recoverable 2P reserves on the Bualuang field to 33.5 MMbo. It has also awarded the contract for the Bravo Wellhead Platform, to be delivered and installed in mid-2012. This will be a 16 slot platform and further development drilling from the Bravo platform in H2 2012 will see production from the Bualuang field increase to 15,000 bopd in 2013.
A Gas Sales Agreement for the Kerendan gas field, Bangkanai PSC, Onshore Kalimantan has been agreed and is awaiting signature. This will see the commercialization of circa 135 Bcf of gas at a price in excess of $4.50 per Mcf.

Balance Sheet

The Group is in an advanced stage of negotiation and expects imminently to announce agreement on a new debt facility. It will be a $325 million senior and junior reserves based lending facility that will replace the existing senior, junior and acquisition bridge facilities in addition to providing additional liquidity.

At March 31, 2011, total Group debt, including the $100 million convertible bond, was $273 million, total available funds were $103 million, and net debt (including the convertible bond) was $170 million.

Directorate Change

As announced on 3 May Nick Cooper, Chief Financial Officer, will be leaving the Company to join Ophir Energy as Chief Executive Officer with effect from 31st May. The Company has begun a search for a successor and anticipates an orderly transition. A further announcement will be made in due course.

Outlook

Through a combination of higher than expected commodity prices, a growing production base and the expected refinancing of its debt facility the Group's solid financial position has been further strengthened. Operationally the focus is on delivering the 2011 exploration and appraisal program that combines a mixture of low risk, high value wells with higher impact drilling in both Vietnam and Indonesia with the Angklung follow up wells in Bontang and SE Sangatta PSCs.

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Daewoo Wins Vantage Drill Ship Order

Daewoo Wins Vantage Drill Ship Order

Wednesday, May 11, 2011
Asia Pulse Pte Ltd

SEOUL, May 11 Asia Pulse - Daewoo Shipbuilding & Marine Engineering Co. (KSE:042660), South Korea's No. 2 shipbuilder, said Wednesday that it has won a deal to build a drill ship for Vantage Drilling.

Under the deal with Vantage Drilling of the U.S., Daewoo Shipbuilding will deliver the vessel used to find oil and gas wells in deep waters, by May 2013, the company said in a statement. The value of the contract was not revealed.

Daewoo Shipbuilding said it has an option to build one more drill ship.

The vessels, 238 meters long and 42 meters wide, are capable of drilling in waters up to 12,000 feet deep.

The shipbuilder said a steady rise in demand for such specialized vessels is expected due in part to a steady rise in crude oil prices that have made deep sea exploration and development more profitable.

Daewoo Shipbuilding is targeting orders valued at US$11 billion this year.

(C) 2011 Asia Pulse Pte Ltd.

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Vantage Adds to Jackup Backlog with Thailand Contract

Vantage Adds to Jackup Backlog with Thailand Contract

Wednesday, May 11, 2011
Vantage Drilling Co.

Vantage Drilling Co. announced Wednesday that it has received a letter of award for an 18-month drilling program in Thailand for the Emerald Driller.

The contract will commence in continuity with the completion of the Emerald Driller's current contract. Estimated revenues to be generated over the initial term of the contract are approximately $72 million.

Paul Bragg, President and Chief Executive Officer, commented, "We are pleased to add significant additional backlog to the jackup fleet, with Emerald Driller continuing work in Thailand."

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs and the ultra-deepwater drillship, the Platinum Explorer, as well as an additional ultra-deepwater drillship, Tungsten Explorer, now under construction Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned and managed drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.

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Daewoo to Build Vantage Ultra-Deepwater Drillship

Daewoo to Build Vantage Ultra-Deepwater Drillship

Tuesday, May 10, 2011
Vantage Drilling Company

Vantage Drilling Company has entered into an agreement with Daewoo Shipbuilding and Marine Engineering Co., Ltd ("DSME") to
construct an ultra-deepwater drillship further expanding the Company's ultra-deepwater drilling fleet. The Company plans to name
the drillship Tungsten Explorer.

The agreement is a fixed price turnkey contract for the construction of the drillship with a scheduled delivery date of May 31, 2013. The
cost of the Tungsten Explorer, including all project management, commissioning, spares, pre-delivery crew costs and inventory is
estimated to be approximately $580 to $590 million. The Company has also obtained a fixed price option for the purchase of an additional drillship.

Tungsten Explorer will be constructed at DSME's shipyard in Okpo, Korea, and will be capable of operating in water depths up to 12,000 feet, with a total vertical drilling depth capacity of 40,000 feet. The hull design has a variable deck load of 20,000 tons and measures 781 feet long by 137 feet wide. The drillship will be equipped with the most technically advanced features in the drilling industry including DP3 dynamic positioning system, 1250 short ton hook load drilling package, a 9000 hp drawworks, as well as offline pipe handling and trip saver system. The drillship will have accommodations for 200 personnel.

Paul Bragg, the Company's Chairman and CEO, commented, "The addition of Tungsten Explorer to our fleet is an exciting development. While this will be our second Company-owned unit to be constructed at DSME, it will be our fifth drillship project undertaken there, inclusive of our three ongoing construction oversight projects. Our strong relationship with the DSME management has allowed us to achieve exceptional project terms -- a) one of the lowest cost construction contracts of this kind, (b) one of the earliest deliveries of the recent order cycle -- just 24 months away, and (c) one of the highest specification ultra-deepwater units yet to be built.

"We are also very pleased that payment terms provide for an initial down payment of just slightly over $100 million, with the balance of
the contract price due at delivery in May 2013. We plan to debt finance the down payment in connection with our planned refinancing
of some of our existing high cost debt.

"The addition of Tungsten Explorer to our fleet will add substantial additional earnings power to Vantage by the second half of 2013."

The Company, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs and one ultra-deepwater drillship, the Platinum Explorer. The Company's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. The Company also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned and managed drilling units, the Company is a provider of offshore contract drilling services globally to major, nationaland large independent oil and natural gas companies.

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Vantage Shuffles Board Directors

Vantage Shuffles Board Directors

Monday, April 18, 2011
Vantage Drilling Co.

Vantage reported a change in the composition of its Board of Directors.

On April 8, 2011, Hsin-Chi Su informed the Board of Directors (the "Board") of Vantage that effective upon the appointment of Steven Bradshaw to the Board, he would resign from the Board and from the Compensation Committee of the Board. On April 14, 2011, the Board appointed Steven Bradshaw to the Board.

Paul Bragg, Chairman and Chief Executive Officer, commented, "I would like to thank Nobu Su for his service on the Board since June 2008, when Vantage acquired its current five drilling rigs, all of which were then just under construction. With the support of Nobu, we were able to expand rapidly from start up with about $275 million in assets, to full operations with approximately $2 billion in assets today. In the past few months, F3 Capital initiated the replacement of two of its internal Board representatives with new, independent, industry-experienced Board members. Our Board has evolved from its initial sponsor-heavy composition, into an independent group with both experience and industry expertise to provide sound governance and fiduciary oversight on behalf of all of our shareholders. I am also pleased to have Steve Bradshaw join the Board. His experience in offshore drilling will be a valuable asset to us."