'KM-1' newbuild tender assist drilling rig successfully launched at Kencana HL's construction yard in Lumut port, Perak, Malaysia

Mermaid is pleased to advise that its newbuild tender assist drilling rig 'KM-1' was successfully launched at 08:00 hrs on 27 July 2009 at Kencana HL Sdn. Bhd.'s construction yard in Lumut port, Perak, Malaysia. The launching represents a significant step towards the completion of the 'KM-1' scheduled for delivery to Mermaid within the fourth calendar quarter of 2009. The 'KM-1' will be Mermaid's third tender rig in addition to the 'MTR-1' and 'MTR-2'. Both the 'MTR-1' and 'MTR-2' are currently providing offshore drilling services in Indonesia for Hess (Indonesia Pangkah) Ltd. and Chevron Indonesia Company respectively. Subsequent to its delivery, the 'KM-1' will commence a 5 year offshore drilling program in Malaysia with Petronas Carigali Sdn. Bhd. in a contract potentially valued at US$235 million.