Q1 2016 Presentation

Oslo, 11th of May 2016

This presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated («relevant persons»). Any person who is not a relevant person should not act or rely on these presentations or any of its contents. Information in the following presentations relating to price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to future performance of such investments. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Awilco Drilling PLC or any affiliated company thereof. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions.

This presentation may include certain forward-looking statements, estimates, predictions, influences and projections with respect to anticipated future performance and as to the market for products or services which may reflect various assumptions made by the management of the Company. These assumptions may or may not prove to be correct and no representation is made as to the accuracy of such statements, estimates, projections, predictions and influences. These statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. The information and opinions contained in this presentation are subject to change without notice and the Company assumes no responsibility or obligation to update publicly or review any of the forward-looking statements contained herein.

Agenda

1. Highlights
1. Q1 2016 Financial Results
1. Operational Update
1. Market Outlook
1. Summary
1. Q&A

1. Highlights

Announcement of USD 0.10 dividend
Total Q1 Revenue nil; EBITDA loss of USD 13.4 million, net loss of USD 18.7 million
Q1 Opex average per rig approx. USD 63,500 per day
Total contract backlog at end of Q1 was USD 258 million
The WilPhoenix SPS project and BOP installation were completed under budget
WilHunter received IADC's Chairman's Award for best safety performance 2015 (runner up)

2. Q1 2016 Financial Results

Condensed statement of comprehensive income

in USD thousands, except earnings per share

	Q1 2016	Q1 2015
	(unaudited)	(unaudited)

Contract revenue	-	67 840
Reimbursables	33	629
Other revenue	13	28
	46	68 497
Rig operating expenses	11 550	14 353
Reimbursables	-	268
General and administrative expenses	1 876	1 690
Depreciation	4 921	4 519
	18 347	20 830
Operating (loss)/profit	(18 301)	47 667
Interest income	287	71
Interest expense	(2 014)	(2 178)
Other financial items	(514)	(443)
Net financial items	(2 241)	(2 550)
(Loss)/profit before tax	(20 542)	45 117
Tax benefit/(expense)	1 860	(5 880)
Net (loss)/profit	(18 682)	39 237
Total comprehensive (loss)/income	(18 682)	39 237

Attributable to shareholders of the parent	(18 682)	39 237
Basic and diluted earnings per share	(0,62)	1,31

Q4 2016 Balance Sheet

Condensed statement of financial position

in USD thousands

	31.03.2016	31.12.2015
	(unaudited)	(audited)
Rigs, machinery and equipment	243 782	234 336
Deferred tax asset	3 862	2 002
	247 644	236 338
Trade and other receivables	104	7 352
Prepayments and accrued revenue	3 545	2 682
Inventory	4 882	5 015
Cash and cash equivalents	101 110	135 257
Current tax	68 899	68 899
	178 540	219 205
Total assets	426 184	455 543
Paid in capital	130 142	130 142
Retained earnings	87 946	114 135
	218 088	244 277
Deferred tax liability	0	0
Long-term interest-bearing debt	100 000	100 000
	100 000	100 000
Current portion of long-term debt	10 000	10 000
Trade and other creditors	3 959	5 990
Accruals and provisions	16 563	17 702
Current tax payable	77 574	77 574
	108 096	111 266
Total equity and liabilities	426 184	455 543

3. Operational Update

Contract Status – Current Backlog USD 251 million*

Timing of the upcoming WilHunter SPS will depend on when sufficient follow-on work is secured
WilHunter crew downsized, the rig is now warm stacked
Special Periodic Survey (SPS) completed at USD 16 million versus budget of USD 20 million
Installation of new BOP completed at a cost consistent with budget of USD 22.5 million
In dialog with Apache about how and when to resume operations
A further update will be given as and when appropriate
Announcement of dividend payable of USD 0.10 per share
Reflection of nil revenue in the quarter
Dividend payable on or around the 24th June 2016
Share will trade ex-dividend on 24th May 2016, the record date will be 25th May
The Company's dividend policy remains unchanged:

"The Company intends to distribute all free cash flow above a robust cash buffer to support operational working capital requirements and capital expenditure, including SPS."

4. Market Outlook

Low UK Contracting Activity and Continued "Bleak" Prospects…

…Results in Increased Rig Surplus in 2016

Company	Rig name	May	Jun	Jul	Sep	Oct	Jan	Mar	May	Jul	Nov
Transocean	Transocean Prospect
	Sedco 711
	Sedco 714
	Sedco 704	on contract
	Sedco 712	on contract
	Paul B. Loyd, Jr	on contract								options
	Transocean Leader	on contract
Diamond Offshore	Ocean Nomad
	Ocean Princess
	Ocean Vanguard
	Ocean Valiant	on contract	options
	Ocean Patriot	on contract									options
Dolphin Drilling	Borgny Dolphin
	Byford Dolphin	on contract
	Blackford Dolphin	on contract						options
Awilco Drilling	WilHunter	wrm stck
	WilPhoenix			on contract
Stena Drilling	Stena Spey	on contract
Paragon Drilling	Paragon MSS1	yard
Seadrill	West Phoenix	on contract
Odfjell	Deepsea Aberdeen	on contract
	Deepsea Stavanger	on contract				warm stacked
				EN ROUTE	YARD		WARM STACKED		COLD STACKED

Market Recovery seems to be Pushed even Further Out in Time

Due to low oil price, operators have reduced current E&P expenditure
Increased number of available rigs expected to continue through 2016 and potentially beyond
Increased rig attrition is positive for future rebalancing of the rig market
Recent oil price increase leading to first signs of higher enquiry and tendering activity for 2017 and 2018

5. Summary

Announcement of dividend payable of USD 0.10
In dialog with Apache about how and when WilPhoenix is to resume operations
Contract backlog of USD 251 million, still working to secure new work for WilHunter
Market uncertainty continues with respect to the timing and shape of recovery
Evaluating market opportunities on a case-by-case basis

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