Strike steel ceremony for two proprietary KFELS B Class jackup rigs at Keppel FELS yard in Singapore

Mermaid is pleased to announce that its 49% owned special investment vehicle, Asia Offshore Drilling Limited (“AOD”) has successfully carried out the Strike Steel Ceremony for its first of two proprietary KFELS B Class jackup rigs 'Hull-B320' on 8 December 2010 at Keppel FELS' (“Keppel FELS”) yard at 50 Gul Road, Singapore. This ceremony represents the first significant milestone towards the completion of the two jackup rigs scheduled for delivery to AOD in 2012 and 2013 respectively. Through AOD, these two rigs represents Mermaid's first expansion into the operations of jackup rigs in addition to the tender assist rigs 'MTR-1' and 'MTR-2' that it already owns through its subsidiary Mermaid Drilling Limited (“MDL”). 'MTR-2' is currently providing offshore drilling services in Indonesia for Chevron Indonesia Company. Efforts are already underway to market these two new jackup rigs to potential customers across the globe.

Staff of Mermaid and Keppel FELS celebrate the Strike Steel Ceremony at Keppel FELS' yard in Singapore on 8 December 2010