SD Standard Drilling : SDSD-Private Placement successfully completed

SDSD: COMPLETED PRIVATE PLACEMENT

Cyprus, January 6, 2017

Reference is made to announcements made on January 5,

2017, concerning a contemplated private placement in

S.D. Standard Drilling Plc. ("SDSD" or the "Company").

The contemplated private placement was significantly

oversubscribed and the Company is pleased to announce

that it has allotted and issued 111,111,200 shares

(the "New Shares") at the price of NOK 0.90

corresponding to gross proceeds of NOK 100 million

(the "Private Placement").

Net proceeds from the Private Placement will be used

for oil service investment opportunities, directly

into companies, securities and/or assets, with the aim

to control a larger fleet of assets - all purchased at

low values.

The payment date for the New Shares will be on or

about January 11, 2017 and the delivery of the New

Shares will be delivered on or about January 15, 2017.

The New Shares will be listed on the Merkur Market

under a separate ISIN number being CY0107010916 for

the period between issuance of the New Shares and the

approval and publication of the prospectus by the

Norwegian FSA.

The Board will launch a subsequent share offering

(the "Subsequent Offering"). The Subsequent Offering

will be directed towards shareholders in the Company,

as of January 5, 2017, as registered with the VPS two

trading days thereafter (the "Record Date"), who were

not invited to participate, or applied for but were

not allocated shares, in the Private Placement, and

who are not resident in a jurisdiction where such

offering would be unlawful or (for jurisdictions other

than Norway) would require any prospectus, filing,

registration or similar action ("Eligible

Shareholders"). The Company intends to offer

11,900,000 shares to Eligible Shareholders. Given that

the Eligible Shareholders represent approximately

10.69% of the total amount of outstanding shares in

the Company prior to the Private Placement, the

Subsequent Offering represents a possibility for all

of the Eligible Shareholders to maintain their pro

rata shareholding in the Company.

The following primary insiders (or related parties

thereof) of the Company have ordered and been

allocated shares in the Private Placement:

Martin Nes, chairman of the Company has been allocated

1,002,400 shares, Arne Fredly, member of the Board,

has been allocated 1,757,389 shares through Apollo

Asset Limited and Saga tankers ASA, represented on the

Board, has been allocated 7,872,174 shares.

Clarksons Platou Securities AS has acted as Sole

Manager and Bookrunner in the Private Placement.

For further information please contact:

General Manager Evangelia Panagide at [phone]

16, or

Chairman of the Board Martin Nes at [phone]

***

This information is subject to the disclosure

requirements pursuant to section 5-12 of the Norwegian

Securities Trading Act.