Awilco Drilling PLC

Investor Presentation • Mar 8, 2019

CONTINUING TRANSFORMATION OF THE COMPANY THROUGH EXERCISING OF FIRST OPTION

Oslo, 8 th March 2019

DISCLAIMER

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 has been prepared for information purposes only. It has not been prepared for the purposes of, and does not form part of the subscription material for, any offering of securities.

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.

CONTINUING TRANSFORMATION OF THE COMPANY THROUGH EXERCISING OF FIRST OPTION

ATTRACTIVE UPSIDE POTENTIAL FROM NEWBUILDS THROUGH SIGNIFICANT LEVERAGE AND OPTIONS

…with significant flexibility and upside potential

• "Sleeping beauty provision" flexibility to delay delivery up to 12 months per rig to optimise impact of delivery to market
• An early bet on a recovering market with low initial equity investment and limited downside enabled through an attractive financing structure
• Deal agreement providing sufficient time to secure further debt/equity financing at attractive terms

THE OPTIMUM SEMI-SUB RIG FOR HE MW OPERATIONS, DIFFERENTIATING ITSELF FROM PEERS

CS 60 ECO MW - "Premium" Harsh Environment Drilling Rig

A Bespoke Mid-Water Rig Design

Category	Specs
Yard	Keppel FELS, Singapore
Design	Moss Maritime CS60 ECO MW
Displacement	63,000 tonnes
Water Depth	Up to 1,500 m
Variable Deck Load	5,000 t (contract minimum, expected to be ~7,000 t)
Hook Load	2.0 million lbs
	12 Point Mooring + DP2
Station Keeping
Drilling Package	MH Wirth
Thruster Capacity	4 x 3,600 kW
Main Generators	5 x 4,900 kW
Accommodation	140 POB in one-person cabins
BOP	15k 18 ¾" 5 Ram
Certification	NCS AOC & UK Safety Case

Key Rig Attributes

Lowest Environmental Footprint

Enhanced Operational Efficiency ✓ and Safety Performance

Reduced Operating Cost for Both ✓ Rig Owner and Customer

✓ Latest Design and Technology

THE 'GREENEST' RIG BUILT TO DATE

• Estimated saving on fuel consumption and CO₂ taxes is USD 10,000 – 40,000 per day compared to peers due to:
• Hybrid battery technology
• Optimised power systems
• Closed bus technology
• Waste heat recovery
• Energy storage and regeneration
• With Tier III engines and NOₓ scrubbers NOₓ emissions are reduced by 95%

AWDR RIGS WILL MATCH OR EXCEED THE PERFORMANCE* OF THE TOP 10 HARSH RIGS

• Higher tripping speeds with the ram rig
• Automated Drilling Control (ADC) designed and built into the unit – not an upgrade. Equinor quote well duration reductions of 10% on units with ADC
• Faster riser running and recovery speeds deploying MH QTR riser
• Shorter mud hose connect and disconnect times using FPS gooseneck handling systems
• Increased weather uptime by maximising useable length of the telescopic joint by matching it to longer MRT rods as well as proven 6 column hull design
• Highly automated and efficient offline capabilities

SIGNIFICANT EFFICIENCIES GAINED THROUGH DESIGN AND FEATURES

Estimated well durations* are reduced by:

• approx. 12 % compared to 5th generation units
• approx. 40% compared to 4th generation units

COMPANY UPDATE

• New CEO appointed
• Building a Norwegian Drilling organisation
• Marketing activities towards NCS oil companies ongoing
• Newbuild project site team in place
• Rig Build on schedule and on budget
• "First Steel" on rig #1 was mid-November 2018

MARKET OUTLOOK

CRUDE PRICING REMAINS INVESTMENT SUPPORTIVE

STRONG CASH FLOW PROJECTIONS UNDERPINNING INCREASED E&P SPENDING

MODERN HE SEMIS PREFERRED BY NCS OPERATORS – DETACHED UTILISATION INCREASE DRIVES DAYRATE UPTICK

Clear market preference for modern high spec rigs demonstrated in utilisation bifurcation

WHY MODERN HE SEMIS ARE PREFERRED OVER VINTAGE RIGS

Deck capacity	• Better logistics on deck which has a significant efficiency gain • Less dependent on supply vessels, reducing the spread cost
Motions	• Significant better rig motion characteristics ensuring optimized uptime • Ability to operate in all locations worldwide
Winterization	• Capability to work year-around in the Barents Sea • Few rigs can operate year around in the Barents Sea
Digitalization/ Integration	Infrastructure, software and sensors $\bullet$ allowing oil service company (i.e. SLB or BHGE) to link their system to the rig AutoDrill capability allowing real time downhole information

Source: Arctic Securities

*Total days includes downtime when applying uptime efficiency

**The drilling cost to E&Ps for vintage HE semi will in reality be higher as they historically have paid for waiting on weather which is a significant part of the lower uptime vs a modern semi

CONTRACT STATUS & EXPECTED DEMAND FLOATING DRILLING UNITS – NCS¹

15

AWILCO DRILLING – A PURE PLAY HARSH ENVIRONMENT GROWTH STORY

• The Awilco Drilling CS60 ECO rigs will compete on drilling performance at the very top of the Norwegian market while setting a completely new environmental standard as to low fuel consumption and emissions
• Two rigs ordered, options for two more
• New CEO appointed
• Establishing a Norwegian organisation and engaging with NCS customers
• Optionality and Flexibility in both new rig financing and contract timing
• WilPhoenix contracted to Shell for 19 firm wells + 10 option wells
• Data points support market improvement

Q4 2018 INCOME STATEMENT

Condensed statement of comprehensive income

in USD thousands, except earnings per share	Q4 2018 (unaudited)	Full Year 2018 (unaudited)	Q4 2017 (unaudited)	Full Year 2017 (audited)
Contract revenue	10,192	55,917	33,525	130,403
Reimbursables	40	586	343	1,306
Other revenue	4	19	1	22
	10,236	56,522	33,869	131,731
Rig operating expenses	5,520	27,342	7,222	27,751
Reimbursables	15	263	137	357
General and administrative expenses	53	8,766	1,975	8,818
Depreciation	3,151	13,425	3,963	15,686
Impairment	25,000	25,000	45,000	45,000
	33,739	74,796	58,297	97,612
Operating (loss)/profit	(23,503)	(18,274)	(24,428)	34,119
Interest income	802	1,943	609	792
Interest expense	(0)	(4,671)	(1,615)	(6,919)
Other financial items	(466)	(167)	1,010	818
Net financial items	336	(2,895)	4	(5,309)
(Loss)/Profit before tax	(23,167)	(21,169)	(24,424)	28,810
Tax expense	(1,013)	(1,695)	7,497	(643)
Net (loss)/profit	(24,181)	(22,864)	(16,927)	28,167
Total comprehensive (loss)/income	(24,181)	(22,864)	(16,927)	28,167
Attributable to shareholders of the parent	(24,181)	(22,864)	(16,927)	28,167
Basic and diluted earnings per share	(0.49)	(0.52)	(0.56)	0.94

Q4 2018 BALANCE SHEET

Condensed statement of financial position

in USD thousands

	31.12.2018	31.12.2017
	(unaudited)	(audited)
Rigs, machinery and equipment	186 761	178 808
Deferred tax asset	461	1 372
	187 222	180 180
Trade and other receivables	9 075	17 168
Prepayments and accrued revenue	2 862	6 905
Inventory	4 809	4 809
Cash and cash equivalents	63 865	119 286
Current tax	340	3 551
	80 951	151 719
Total assets	268 173	331 899
Paid in capital	198 719	130 142
Retained earnings	62 671	101 068
	261 390	231 210
Long-term interest-bearing debt	-	80 000
	-	80 000
Current portion of long-term debt	-	10 000
Trade and other creditors	1 213	1 170
Accruals and provisions	5 504	9 519
Current tax payable	66	0
	6 783	20 689
Total equity and liabilities	268 173	331 899