Paratus Energy Services Ltd.

Legal Proceedings Report • Mar 3, 2025

Paratus Announces Contract Update for Courageous and Intrepid

Paratus Announces Contract Update for Courageous and Intrepid

Hamilton, Bermuda, March 3, 2025 - Paratus Energy Services Ltd. (ticker "PLSV")

("Paratus" or the "Company") announces that its wholly owned subsidiary Fontis

Holdings Ltd. (together with its subsidiaries, "Fontis") has received notice

from its client that it has elected to exercise the previously disclosed

contractual options for early termination of the drilling contracts for the

Courageous and the Intrepid. Both rigs are subject to a 365-day notice period,

which limits the reduction in Fontis' backlog to approximately $39 million,

corresponding to 3% of Paratus' overall $1.2bn backlog.

The reasons cited for the early termination includes unfavorable contract terms,

such as limited suspension rights and indexation structure of dayrates (with

floor and cap), and economic considerations. Nothing in the client's

notification suggests that this action was driven by reduced operational need

for drilling rigs in 2026. This action may enable the client to better align

contractual terms across its service providers during 2026, as Fontis' contracts

benefit from certain rights, which have resulted in that all of Fontis' rigs are

on contract, despite the current reduced activity announced by other service

providers in the region.

Following this election, the client has no remaining contractual flexibility to

further shorten the contracts for any of Fontis' rigs.

The drilling contracts for the Courageous and the Intrepid will now expire on

February 28, 2026 as opposed to its original expiration date of November 29,

2026 and May 27, 2026, respectively. As announced last week, Fontis has been

awarded a 78-day contract extension for the Oberon. All Fontis rigs are

currently on contract and, with the exception of the Titania, all rigs are

contracted into 2026. While Fontis believes higher drilling activity will be

required to meet the stated production goals of its client in Mexico, Fontis

will continue to explore opportunities for its fleet both inside and outside of

this region.

Paratus currently has all its 11 assets under contract, with 10 contracted into

next year or beyond, and the majority of contracts extend into 2027 or 2028.

This announcement has no impact on the 2025 financial guidance, nor the ongoing

share buyback program announced on 20 February 2025 ("the Buyback"). As a

reminder, the Buyback remains scheduled to close on March 4, 2025, and while

Paratus' two largest shareholders, Hemen investments Ltd. and Lodbrok Capital

LLP on behalf of funds and accounts managed or advised by it, have informed the

Company that they do not intend to participate in the Buyback, any shareholders

willing to sell shares should contact ABG Sundal Collier ASA at the contact

details included in the announcement of the Buyback on 20 February 2025.

For further information, please contact:

Robert Jensen, CEO

robert.Jensen@paratus-energy.com

+47 958 26 729

Baton Haxhimehmedi, CFO

baton.Haxhimehmedi@paratus-energy.com

+47 406 39 083

About Paratus

Paratus Energy Services Ltd. (ticker: PLSV) is an investment holding company of

a group of leading energy services companies. The Paratus Group is primarily

comprised of its ownership of Fontis Energy and a 50/50 JV interest in Seagems.

Fontis Energy is an offshore drilling company with a fleet of five high

-specification jack-up rigs working under contracts in Mexico. Seagems is a

leading subsea services company, with a fleet of six multi-purpose pipe-laying

support vessels under contracts in Brazil. In addition, Paratus is the largest

shareholder in Archer Ltd, a global oil services company, listed on the Euronext

Oslo Børs.

Forward-Looking Statements

This release includes forward-looking statements. Such statements are generally

not historical in nature, and specifically include statements about the

Company's and / or the Paratus Group's (including any member of the Paratus

Group) plans, strategies, business prospects, changes and trends in its business

and the markets in which it operates. These statements are based on management's

current plans, expectations, assumptions and beliefs concerning future events

impacting the Company and / or the Paratus Group and therefore involve a number

of risks, uncertainties and assumptions that could cause actual results to

differ materially from those expressed or implied in the forward-looking

statements, which speak only as of the date of this news release. Important

factors that could cause actual results to differ materially from those in the

forward-looking statements include, but are not limited to, management's

reliance on third party professional advisors and operational partners and

providers, the Company's ability (or inability) to control the operations and

governance of certain joint ventures and investment vehicles, oil and energy

services and solutions market conditions, subsea services market conditions, and

offshore drilling market conditions, the cost and timing of capital projects,

the performance of operating assets, delay in payment or disputes with

customers, the  ability to successfully employ operating assets, procure or have

access to financing, ability to comply with loan covenants, liquidity and

adequacy of cash flow from operations of its subsidiaries and investments,

fluctuations in the international price of oil or alternative energy sources,

international financial, commodity or currency market conditions, including, in

each case, the impact of pandemics and related economic conditions, changes in

governmental regulations, including in connection with pandemics, that affect

the Paratus Group, increased competition in any of the industries in which the

Paratus Group operates, the impact of global economic conditions and global

health threats, including in connection with pandemics, our ability to maintain

relationships with suppliers, customers, joint venture partners, professional

advisors, operational partners and providers, employees and other third parties

and our ability to maintain adequate financing to support our business plans,

factors related to the offshore drilling, subsea services, and oil and energy

services and solutions markets, the impact of global economic conditions, our

liquidity and the adequacy of cash flows for our obligations, including the

ability of the Company's subsidiaries and investment vehicles to pay dividends,

political and other uncertainties, the concentration of our revenues in certain

geographical jurisdictions, limitations on insurance coverage, our ability to

attract and retain skilled personnel on commercially reasonable terms, the level

of expected capital expenditures, our expected financing of such capital

expenditures, and the timing and cost of completion of capital projects,

fluctuations in interest rates or exchange rates and currency devaluations

relating to foreign or U.S. monetary policy, tax matters, changes in tax laws,

treaties and regulations, tax assessments and liabilities for tax issues, legal

and regulatory matters, customs and environmental matters, the potential impacts

on our business resulting from climate-change or greenhouse gas legislation or

regulations, the impact on our business from climate-change related physical

changes or changes in weather patterns, and the occurrence of cybersecurity

incidents, attacks or other breaches to our information technology systems,

including our rig operating systems. Consequently, no forward-looking statement

can be guaranteed.

Neither the Company nor any member of the Paratus Group undertakes any

obligation to update any forward-looking statements to reflect events or

circumstances after the date on which such statement is made or to reflect the

occurrence of unanticipated events. New factors emerge from time to time, and it

is not possible for us to predict all of these factors. Further, we cannot

assess the impact of each such factors on our businesses or the extent to which

any factor, or combination of factors, may cause actual results to be materially

different from those contained in any forward-looking statement.