Ability Drilling ASA Pareto Conference 28 August 2007

1. Ability Drilling ASA Pareto Conference 28 August 2007

2. Table of contents • Investment summary • Market overview & status • Organization • Rig description • Financials

3. Investment summary • Shortage of land rigs in the Middle East and North Africa (MENA) • MENA with 73% of global onshore oil reserves but only 10% of global land rig fleet • Significant increase in drilling needed in order to meet production target • Increasing need for new drilling technology • “State of the art” land rigs from Sense EDM (TTS Marine Group) • Ability Drilling with the option to order 42 drilling rigs + 42 work-over rigs • 4 drilling rigs + 2 work-over rigs under construction with first delivery late 2007 • Transfer of offshore drilling technology to land rigs • Creating the preferred onshore drilling contractor in the MENA regions • Focus on technologically advanced solutions and effective operations • High quality management team in place and established network with influential local partners • Attracting high quality drilling crew with advanced technology and strong incentive scheme • Listing on Oslo Axess in 2nd half 2007 • New equity of approx. NOK 400 mill to fund investments in additional rigs

4. Table of contents • Investment summary • Market overview & status • Organization • Rig description • Financials

5. MENA with 73% of world onshore oil reserves- But only 10% of land rig fleet Current land rig supply by region Conventional oil resources (2005) Source: ExxonMobil Source: Baker Hughes • The Middle East continues to be the world’s largest expected source of oil • But only accounts for about 10% of the worldwide land rig fleet

6. Global trend #1- Increasing need for drilling in order to meet production targets Rig intensity USA Rig intensity Middle East Source: Baker Hughes, EIA Source: Baker Hughes, EIA • # of US oil rigs doubled last 8 years. Oil production has declined • # of Middle East oil rigs increased ~45% last 8 years. Oil production flat • Drilling operations more “rig intensive”

7. Global trend #2- Increasing need for new drilling technology The oil field pyramid Growth in complex drilling1) Source: Simmons & Co 1) Graph showing development of drilling types in the US Source: Baker Hughes • From giants to marginal fields • From vertical to directional and horizontal drilling • Most of the current land rig fleet not suitable for modern requirements • Underbalanced drilling - critical for improving declining production • Enabling improved production from; • Existing fields with depleting reservoir pressure • Complex reservoirs

8. Marketing strategy & status • Strategy • Local influential partners & network in MENA • Targeting long-term drilling contracts • Status • LOI for 3 rigs * 5 years with growth potential • 3 outstanding tenders for drilling rigs and work-over rigs • Direct negotiations for 2 rigs

9. Table of contents • Investment summary • Market overview & status • Organisation • Rig description • Financials

10. First class management • Board of Directors • Geir Nordahl-Pedersen, Chairman • Founded and managed Ability Group ASA (AGR) from 1987-2001 and 2003-2006 • Petter H. Tomren, Vice Chairman (CEO of Awilco Offshore Semi ASA) • Trygve Arnesen (CEO of Ocean Rig ASA) • Maj Elisabeth Vangsnes (Man. Operation Support, Odfjell Drilling ASA) • Elin S. Vasstrand (Supply Chain Manager, FMC Kongsberg Subsea AS) • Management • Hans Petter Eikeland, President & CEO • Over 25 years experience from the petroleum industry in the North Sea and North Africa (Smedvig Offshore and Odfjell Drilling) • Trond Løkke, Executive VP Rig Development • Over 30 years of international onshore and offshore drilling experience (RGM, Transocean, Aker Drilling, Neddril and more) • Eivind Wiik, Executive VP Operation • More than 20 years of experience in the drilling industry (Aker Drilling, Transocean, Baker Hughes Inteq and Odfjell Drilling) • Geir Gorm Olsen, Executive VP QHSE • Over 25 years experience from the petroleum industry in the North Sea, Middle East and North Africa (Smedvig Offshore and Norsk Hydro) • Erik Simonsen, Executive VP Finance • 10 years exp. from operational and financial positions in the petroleum industry (MD Offshore Research AS and Seateam Technology) • Kenneth Tunes, Financial Controller • 10 years of experience from auditing, banking and management within Ernst & Young, Nordea and Welcon

11. Table of contents • Investment summary • Market overview & status • Organisation • Rig description • Financials

12. The new generation of land rigs • Enhanced drilling capabilities • “Push & Pull” technology • Underbalanced drilling • Horizontal/directional drilling • Faster drilling operations • Dual operations incl. remote pipe handling • Implemented North Sea drilling practice • Online monitoring of rig and reservoir • Faster mob./demob. • Specialized design • Competitive opex and improved HSE • Fully automated drilling operations • Operating crew of 13 people vs. 36 for “best” traditional land rigs • Incentive program to secure the best human resources

13. Faster drilling operations • Field proven at offshore north sea rigs • Safer and easier to operate. • Two complete working stations in drillers cabin, perfect for crew training and maintenance.

14. Technical specifications- Drilling rigs Note: Subject to change

15. Technical specifications- Work-over rigs Note: Subject to change

16. Earnings objectives • Ability Drilling targeting USD 36 - 40,000 day rate • Reflecting enhanced drilling capabilities • Automated pipe handling equipment • Dual operations • Integrated top drive • Snubbing and well intervention capabilities • Including extra equipment • Drill pipes • Blow out preventor (BOP) • Comparable with USD 26 - 30,000 for standard unit Dayrate breakdown

17. Increased value creation for oil companies Client focus has changed from cheap rigs & labor to how fast can wells be delivereddue to lack of production capacity

18. Table of contents • Investment summary • Market overview & status • Organisation • Rig description • Financials

19. Key financial assumptions • Dayrates: • $36,000/day for drilling rigs • $20,000/day for work-over rigs • Opex: • $15,000/day for drilling rigs • $10,000/day for work-over rigs • Cost per rig: • $23m per drilling rig  Payback = 3.6 years • $8.6m per work-over rig  Payback = 3 years • Utilization: 90%

20. Financial accounts Funding: • NOK 280 mill. of equity in 2006 • NOK 450 mill. unsecured bond loan in February 2007

21. Share price performance and ownership structure Share price and liquidity Ownership structure • Strong share price performance and liquidity: +159% since OTC-listing in October 2006 • Ability Drilling currently has 276 shareholders • Management and key employees own ~18% of the company’s shares • 7,000,000 outstanding warrants and 1,700,000 outstanding options issue to key employees

22. Investment summary • Shortage of land rigs in the Middle East and North Africa (MENA) • MENA with 73% of global onshore oil reserves but only 10% of global land rig fleet • Significant increase in drilling needed in order to meet production target • Increasing need for new drilling technology • “State of the art” land rigs from Sense EDM (TTS Marine Group) • Ability Drilling with the option to order 42 drilling rigs + 42 work-over rigs • 4 drilling rigs + 2 work-over rigs under construction with first delivery late 2007 • Transfer of offshore drilling technology to land rigs • Creating the preferred onshore drilling contractor in the MENA regions • Focus on technologically advanced solutions and effective operations • High quality management team in place and established network with influential local partners • Attracting high quality drilling crew with advanced technology and strong incentive scheme • Listing on Oslo Axess in 2nd half 2007 • New equity of approx. NOK 400 mill to fund investments in additional rigs