Multi Purpose Floater

MPF01 – Deepwater DP Drilling UnitDoubleender DP Tanker Hull & Modularized TopsidesAll elements are proven technology,but combined in a unique configuration

MPF 01 - Commercial Summary• MPF-01 hull is currently under construction in China with completion early 2008• MPF-01 is being outfitted as a DP-3 ultra-deep water drilling unit for wells to35,000 ft in up to 10,000 feet of water• MPF-01 has space, deckload & oil storage capacity to function in early productionservice. No production equipment is currently included (optional)• All equipment for the MPF-01 is currently on order with deliveries to coincide withoutfitting requirements and terms for outfitting & installation agreed• A large number of employment opportunities identified and underdiscussion/negotiation• MPF has established an operating company based in Houston• Operations expected to commence mid 2009

Dayrate and Contract Target• MPF targets 5 year firm contract‣ Meets shareholder expectations‣ Allows for immediate construction of second vessel• Market rate for comparable drilling unit plus some premium• FPSO capability available at very limited additional initial cost‣ Production equipment probably leased‣ If used, day-rate would increase for equipment and operations• Mobilization fee dependent on rate and term but should be seen asintegrated part of contract

MPF-01 Employment opportunities• Gulf of Mexico‣ Several ultra deep discoveries‣ Opened for FPSO solutions‣ Improved reservoir information through extended testing and earlyproduction highly valued‣ Majors, NOCs and large independents• West Africa‣ Targets in all major operating theaters‣ Seen as independent field development tool limiting exposure to localinfrastructure and justifying development of fields “on hold”‣ Majors, NOCs and governments• Other areas

Delivery & Status Review• Steel cutting initiated in Cosco‣ Slightly ahead of schedule• Final terms for phase 2 of the EPC contract with Dragados Offshore SA agreed• Delivery mid 2009‣ Certain key equipment somewhat delayed (drilling and subsea)‣ More time anticipated for testing and commissioning‣ Possibility to improve with close cooperation‣ Bonus for early delivery, penalties after short grace period‣ Realistic time frame based on previous experience

MPF revised Project funding budgetORIGINAL /FUNDING EXPECTED under-exp /BUDGET TOTAL ( overrun ) CommentINTERNAL DESIGN ETC 6 600 000 7 600 000 -1 000 0003rd PARTY DESIGN & VERIFICATION 15 000 000 11 008 543 3 991 457TOTAL MPF DESIGN & MANAGEMENT 21 600 000 18 608 543 2 991 457CRANES AND HANDLING EQUIPMENT 10 700 000 19 720 769 -9 020 769 Note 1DRILLING EQUIPMENT 129 193 354 107 289 937 21 903 417DRILLING RISER 15 000 000 27 143 806 -12 143 806 Note 2POWER PROPULSION AUTOMATION 55 804 328 74 295 085 -18 490 757 Note 3LIVING QUARTER, CREW EQUIPMENT AND LIFEBOATS 27 200 000 47 057 194 -19 857 194 Note 4OFE TRANSPORTATION 2 081 346 6 000 000 -3 918 654 Note 5Note 1Note 2Note 3Note 4Two additional offshore cranesand one handling craneAdditional risers ordered (also foruse on future MPF units)Two additional diesels, thrustersand additional power supplyUpgrade and expansion of livingquartersTOTAL NSI/OFE EQUIPMENT CONTRACTS 239 979 028 281 506 791 -41 527 763HULL CONSTRUCTION CONTRACT 147 767 412 127 611 700 20 155 712OTHER HULL COSTS 0 10 000 000 -10 000 000 Note 6TOTAL HULL CONSTRUCTION 147 767 412 137 611 700 10 155 712CONSTRUCTION & INTEGRATION MAIN CONTRACT 171 913 552 245 200 000 -73 286 448 Note 7CONSTRUCTION & INTEGRATION OTHER COSTS 680 000 0 680 000COMMISSIONING, TESTS & TRIALS 4 000 000 0 4 000 000 Note 8TOTAL CONSTRUCTION & COMPLETION 176 593 552 245 200 000 -68 606 448TOTAL PROJECT COST [USD] 585 939 992 682 927 034 -96 987 042Note 5Note 6Estimated EquipmenttransportationEstimated hull towingNote 7 Increased steel (about 2000 t)and about 20% increase in steelprice amounting to about 25MUSD in additional costs.Additional integration costs andupgrade of cargo handlingsystems, about 50 MUSDincluding FX effect.Number stated net of expectedSpanish ECA benefitsNote 8Included in contract

Revised Financing Plan• Total financing requirement usd 775 million to be covered as follows:‣ USD 275 million equity (unchanged)‣ USD 150 million bond issue (unchanged)‣ USD 350 million bank loan (increase from usd 215 million)• Pure capex increase accounts for approximately usd 100 million• Mid 2009 delivery influence sga and interest during construction which account forbalance of increase in financing requirement• In advanced discussions with banks

Operations Management Plan• MPF intends to build second MPF ASAP‣ Pending firm contract for first vessel‣ Option secured with Cosco hull yard‣ Financing capability in place‣ Significant economies of scale in a second vessel• Long lead equipment times secured‣ Critical spares for first rig operations‣ Utilize on 2nd rig in conjunction with additional equipment orders‣ Exploring possibilities to rent or share in cost of critical spares like riser &bop.‣ Invest in training slots to allow quick personnel substitution.

Operations Hiring Strategy• Smaller, high tech companies are attractive to entrepreneurial managers• Significant turnover in personnel in big drilling contractors• MPF Hiring Strategy‣ Plan to offer better success incentives and employment package for senior personnel‣ Offer better training, advancement, wages and benefits for junior personnel‣ Offer personnel incentives based on length of employment milestones‣ Offer a small, employee oriented company atmosphere

Management Depth - Overall Development Schedule2007 2008 2009Tasks J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N DEngineering, Project TeamKey Drilling Management StaffMgmt Systems, PM, HSEQ, Etc.Drilling & Marine CadreDrilling & Marine Crew

Management Depth - MPF Corporate ManagementChairman & CEOWilhelm P. BlystadCFOChristian HolstStrategyBus DevelopmentDonn PedersenContractsCommercialEivind BuggeNorway HSEQ/HRLeiken DahlCOODavid Toalson

Management Depth – Houston Operations StructureOPT-MPF Operating CompanyProject & Ops ManagementD. ToalsonCertificationTraining(TBN)HSEQ(TBN)MPF-01 OperationsManagerW. EllisMPF-01 ConstructionManagerJ McMullenOPT-MPF Operating CompanyMarketing & Admin ManagementD. PedersenMarketingD.Pedersen, Acting\Human ResourceManagerLynne Mahood, ActingGeneral CouncilJ PavlasAccounting ManagerRobert Engelking

Management Depth - Construction Project ManagementConstructionManagerJohn McMullenProjectAdministratorBjorn VadholmHSEQLeiken DahlSite ManagerDahlian, ChinaTorleif SalboHull & SystemsEngineeringTore StrandRig EngineeringThor KarlsenDP & ElectricalPendingSubsea EngineeringPending(5 Inspectors)Hull & SystemsDesignerInocean A/SDrilling SystemsDesignersRDS- London

www.mpf-corp.com