Strike steel ceremony for 2nd proprietary KFELS B Class jackup rig 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 second of two proprietary KFELS B Class jackup rig 'Hull-B321' on 22 February 2011 at Keppel FELS' (“Keppel FELS”) yard at 50 Gul Road, Singapore. The Strike Steel Ceremony for the first jack-up rig 'Hull-B320' was carried out on 8 December 2010 at the same location. This ceremony represents another 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.

Management & Staff of Mermaid and Keppel FELS celebrate the Strike Steel Ceremony for the 2nd jack-up rig at Keppel FELS' yard in Singapore on 22 February 2011