Northern Offshore, Ltd. to purchase three jack-up units

Northern Offshore, Ltd. (Norwegian OTC: ?OFL? has signed a definitive agreement with Maersk Contractors to purchase three 300?IC Harsh Environment Jack-up drilling units. The three Harsh Environment Jack-up drilling units, the Enhancer, the Endeavour and the Exerter, are currently operating in the Danish sector of the North Sea under drilling contracts with Maersk Oil & Gas, an affiliate of Maersk Contractors.

The drilling contracts expire in August 2008, September 2009 and December 2009, respectively, subject to certain conditions. Maersk Contractors will continue to manage the units while under their existing drilling contracts. Closing and delivery of the rigs is expected to occur on June 15, 2007. The purchase price for the rigs is US$ 455 million, and will be funded through existing cash resources and debt finance.