Shelf Drilling : Fleet Status Report Updated November 2020

FLEET

STATUS

REPORT

13 NOVEMBER 2020

Fleet Status Report

13 November 2020

Revisions Noted in "Bold"

Recent Events

• Shelf Drilling Tenacious secured a contract from Masirah Oil in Oman commencing December 2020 with an initial firm term covering two wells. Rig completed contract with Dubai Petroleum in September 2020.
• Parameswara secured a contract with Adani in India commencing late November 2020 for one firm well plus one optional well.
• Trident VIII commenced new contract with Unitech in Nigeria in September 2020 with an initial firm term of 100 days.
• Main Pass I received notice of suspension of operations from Saudi Aramco for up to 12 months beginning October 2020, contract term to be extended by equal period.
• Main Pass IV received notice of suspension of operations from Saudi Aramco following completion of the ongoing out-of-service project through December 2020.
• Key Singapore operations suspended in October 2020. Rig now on standby in Tunisia.
• Shelf Drilling Enterprise estimated contract commencement with Chevron Thailand delayed to late December 2020 due to COVID-19 related logistical challenges.
• Shelf Drilling Mentor completed contract with Dubai Petroleum in October 2020, rig is now available.
• Trident XIV sale completed in August 2020.
• Bareboat Charter Rigs: Terminated agreements with affiliates of China Merchants for bareboat charter of two CJ-46jack-up rigs.

Rig Design1

Max Water

Customer

Location

Contract Start

Contract End

Comments3

Rig Name

Depth (Feet)

Date

Date2

Middle East & Mediterranean

Shelf Drilling Achiever

GustoMSC CJ46-X100-D

350

Saudi Aramco

Saudi Arabia

Dec 2019

Dec 2022

Customer has a 1-year option.

Shelf Drilling Journey

GustoMSC CJ46-X100-D

350

Available

Bahrain

-

-

High Island II

MLT 82-SD-C

270

Saudi Aramco4

Saudi Arabia

Mar 2020

Mar 2030

Planned OOS in Q1/Q2 2021.

High Island IV

MLT 82-SD-C

270

Saudi Aramco4

Saudi Arabia

Feb 2020

Feb 2031

Operations suspended from Jul 2020 for up to 12 months.

High Island V

MLT 82-SD-C

270

Saudi Aramco

Saudi Arabia

Apr 2019

Mar 2022

High Island IX

MLT 82-SD-C

250

Saudi Aramco

Saudi Arabia

Jun 2016

Jun 2021

Customer has one 2-year option. Planned OOS in Q2 2021.

Main Pass I

F&G L-780 Mod II

300

Saudi Aramco4

Saudi Arabia

Feb 2020

Feb 2031

Operations suspended from Oct 2020 for up to 12 months.

Main Pass IV

F&G L-780 Mod II

300

Saudi Aramco4

Saudi Arabia

Mar 2020

Apr 2025

Planned OOS in Q3/Q4 2020 followed by suspension through Dec 2020.

High Island VII

MLT 82-SD-C

250

ADNOC Drilling

UAE

Feb 2016

May 2023

Customer has two 1-year options. Planned OOS in Q1/Q2 2021.

Compact Driller

MLT 116-C

300

ADNOC Drilling

UAE

May 2019

Jun 2022

Customer has two 1-year options.

Shelf Drilling Tenacious

BMC Pacific 375

375

Masirah Oil

UAE

Sep 2020

Nov 2020

Completed contract with Dubai Petroleum in Sep 2020. Currently undergoing

Oman

Dec 2020

Jan 2021

preparation for new 2-well plus options contract in Oman.

Shelf Drilling Mentor

LT Super 116 E

350

Available

UAE

-

-

Completed contract with Dubai Petroleum in Oct 2020.

Key Singapore

MLT 116-C

350

ENI

Tunisia

Sep 2019

Sep 2020

Returned to operations in Jun 2020. Operations suspended in Oct 2020. Customer has a 1-

year option.

Key Manhattan

MLT 116-C

350

ENI

Italy

Apr 2016

Sep 2021

Operations suspended. Customer has three 6-month options.

Rig 141

MLT 82-SD-C

250

Gempetco

Egypt

Apr 2019

Nov 2020

Customer has two 3-month options.

Trident 16

Modec 300-C38

300

Petrobel

Egypt

Feb 2019

Feb 2021

Rig on call out contract. Operations suspended in Oct 2020.

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Fleet Status Report

13 November 2020

Revisions Noted in "Bold"

Rig Design1

Max Water

Customer

Location

Contract Start

Contract End

Comments3

Rig Name

Depth (Feet)

Date

Date2

South East Asia

Shelf Drilling Chaophraya

LT Super 116 E

350

Chevron

Thailand

Dec 2016

Jan 2022

Shelf Drilling Krathong

LT Super 116 E

350

Chevron

Thailand

Jun 2017

Aug 2022

Shelf Drilling Scepter

Keppel FELS Super B

350

Chevron

Thailand

Dec 2019

May 2022

Customer has a one-year option.

Shelf Drilling Enterprise

BMC Pacific 375

375

Chevron

Singapore/Thailand

Jan 2020

Dec 2020

Contract preparation.

Thailand

Dec 2020

Jul 2022

Customer has a 5-month option.

India

Trident XII

BMC 300-IC

300

ONGC

India

Jan 2018

Jan 2021

Harvey H. Ward

F&G L-780 Mod II

300

ONGC

India

Feb 2018

Feb 2021

J.T. Angel

F&G L-780 Mod II

300

ONGC

India

Mar 2018

Mar 2021

Ron Tappmeyer

MLT 116-C

300

ONGC

India

May 2019

May 2022

F.G. McClintock

MLT 53-SC

300

ONGC

India

Oct 2019

Oct 2022

C.E. Thornton

MLT 53-SC

300

ONGC

India

Dec 2019

Dec 2022

Trident II

MLT 84-SC Mod

300

ONGC

India

Mar 2020

Mar 2023

Parameswara

BMC 300-IC

300

Adani

India

Aug 2020

Nov 2020

Contract preparation.

Nov 2020

Jan 2021

Secured contract for 1 firm well plus 1 optional well.

West Africa

Adriatic I

MLT 116-C

350

Conoil

Nigeria

Oct 2019

Dec 2020

Baltic

MLT Super 300

375

Total

Nigeria

Oct 2019

Dec 2020

Operations suspended in Jul 2020.

Shelf Drilling Resourceful

LT Super 116 C

350

Available

Nigeria

-

-

Trident VIII

Modec 300-C35

300

Unitech

Nigeria

Sep 2020

Dec 2020

Secured contract with an initial firm term of 100 days.

Trident XIV

BMC 300-IC

300

Sold

-

-

-

Rig sale completed in Aug 2020.

Stacked

Trident 15

Modec 300-C38

300

-

Malaysia

-

-

Stacked. Rig is held for sale.

Hibiscus

Heavy Swamp Barge

21

-

Indonesia

-

-

Stacked. Rig is held for sale.

Randolph Yost

MLT 116-C

300

-

USA

-

-

Stacked. Rig is held for sale.

Galveston Key

MLT 116-SC Mod

300

-

UAE

-

-

Stacked. Rig is held for sale.

Key Hawaii

Mitsui 300 C

300

-

Bahrain

-

-

Stacked. Rig is held for sale.

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Fleet Status Report

13 November 2020

Revisions Noted in "Bold"

FOOTNOTES

1. MLT: Marathon LeTourneau, LT: LeTourneau, F&G: Friede & Goldman, BMC: Baker Marine Corp.
2. The Contract End Date typically does not include the duration to complete the customer's last well if permitted under the "Well in Progress" clause in the rig contract.
3. OOS - Out of Service. Included if planned OOS duration is greater than 30 days.
4. Contract includes an annual rate adjustment linked to the Brent oil price.

FORWARD-LOOKING STATEMENTS

The information contained in this Fleet Status Report is as of the date of the report only and is subject to change without notice to the recipient, and we assume no duty to update any portion of the information contained herein. This Fleet Status Report contains statements that are not historical facts, which are "forward‐looking statements". Forward‐looking statements include, but are not limited to, statements about estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates, shipyard projects, our business, financial performance and prospects. Although we believe that the expectations reflected in such forward‐looking statements are reasonable, we cannot assure you that such expectations will prove to have been correct. Various factors could cause actual results to differ materially.

The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties, including, without limitation:

• the COVID-19 pandemic and its effect on demand for our services, global demand for oil and natural gas, the U.S. and world financial markets, our financial condition, results of operations and cash flows;
• our ability to renew or extend contracts, enter into new contracts when such contracts expire or are terminated, and negotiate the dayrates and other terms of such contracts;
• the demand for our rigs, including the preferences of some of our customers for newer and/or higher specification rigs;
• changes in worldwide rig supply and demand, competition or technology, including as a result of delivery of newbuild rigs;
• the expectations of our customers relating to future energy prices and ability to obtain drilling permits;
• the impact of variations in oil and gas production and prices and demand in hydrocarbons;
• the impact of variations in demand for our products and services;
• sufficiency and availability of funds and adequate liquidity for required capital expenditures and deferred costs, working capital, share repurchases and debt service;
• our levels of indebtedness, covenant compliance and access to future capital;
• the level of reserves for accounts receivables;
• the disproportionate changes in operating and maintenance costs compared to changes in operating revenues;
• downtime and other risks associated with offshore rig operations or rig relocations, including rig or equipment failure, damage and other unplanned repairs;
• the expected completion of shipyard projects including the timing of newbuild rig construction and delivery and the return of idle rigs to operations;
• future capital expenditures and deferred costs, refurbishment, reactivation, transportation, repair and upgrade costs;
• the cost and timing of acquisitions and integration of additional rigs;
• our ability to reactivate rigs;
• the proceeds and timing of asset dispositions;
• the effects and results of our strategies;
• complex laws and regulations, including environmental, anti-corruption and tax laws and regulations, that can adversely affect the cost, manner or feasibility of doing business;
• litigation, investigations, claims and disputes and their effects on our financial condition and results of operations;
• effects of accounting changes and adoption of accounting policies;
• expectations, trends and outlook regarding offshore drilling activity and dayrates, industry and market conditions, operating revenues, operating and maintenance expense, insurance coverage, insurance expense and deductibles, interest expense and other matters with regard to outlook and future earnings;
• potential asset impairment as a result of Company specific, industry specific or market factors;
• the market value of our rigs and of any rigs we acquire in the future, which may decrease;
• effects of customer interest or inquiries;
• the global number of contracted rigs, and our ability to benefit from any increased activity;
• our ability to attract and retain skilled personnel on commercially reasonable terms, whether due to labor regulations, unionization or otherwise;
• the security and reliability of our technology systems and service providers;
• adverse changes in foreign currency exchange rates;
• changes in general economic, fiscal and business conditions in jurisdictions in which we operate and elsewhere;
• our ability to obtain financing and pursue other business opportunities may be limited by our debt levels, debt agreement restrictions and the credit ratings assigned to our debt by independent credit rating agencies; and
• our incorporation under the laws of the Cayman Islands and the limited rights to relief that may be available compared to United States ("U.S.") laws.
• other risks indicated in the Company's filings and/or financial reports.

All of the foregoing risks and uncertainties are beyond the ability of the Company to control, and in many cases, the Company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements.

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