Deep Value Driller AS — Interim / Quarterly Report 2021

Sep 15, 2021

Deep Value Driller AS First half 2021

Prepared by: Svend Anton Maier, CEO

H1 2021

OVERVIEW CONTENT

> Disclaimer

• Comments from the chairman

• Status rig

• Malta

• Market outlook

• Project Progress

• Financial statement

• Notes

Disclaimer

DISCLAIMER AND IMPORTANT INFORMATION

This Presentation and its appendices (the "Presentation") has been produced by Deep Value Driller AS, a Norwegian private limited company with its shares admitted to trading on Euronext Growth (Oslo) under the ticker code "DVD"(the "Company"). References to the "Company" , "Group" , "we" , "our" , "us" or similar terms refer to Deep Value Driller AS and its consolidated subsidiaries, except where context otherwise requires. This Presentation, and the information contained herein, has been prepared solely for information purposes and does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or a recommendation regarding, any Shares and nothing contained herein shall form the basis of any contract or commitment whatsoever. This Presentation do not purport to contain a complete description of the Company or its prospects. Any analysis contained in this Presentation is not, and does not purport to be, appraisals of the assets, Shares or business of the Company or any other person. The Presentation is intended to present background information on the Company, its business and the industry in which it operates and is not intended to provide complete disclosure upon which an investment decision could be made. No representation, warranty or undertaking, express or implied, is made by the Company or any of its affiliates or representatives as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein, for any purpose whatsoever. The Company or any of its affiliates or representatives shall not have any responsibility or liability whatsoever (for negligence or otherwise) for any loss whatsoever and howsoever arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation. Unless otherwise stated, the Company is the source for information included in this Presentation. Information provided on the market environment, developments, trends and on the competitive situation is based on data and reports prepared by third parties and/or the Company based on its own information and information derived from such third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. This Presentation speaks as of the date hereof. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect developments that may occur after the date of this Presentation. This Presentation contains forward-looking information and statements relating to the business, financial performance and results of the Company and/or industry and markets in which it intends to operate. Such forward-looking statements are based on current expectations, estimates and projections, reflect current views with respect to future events, and are subject to risks, uncertainties and assumptions. Forward-looking statements are not guarantees of future performance and risks, uncertainties and other important factors could cause the actual results of operations, financial condition and liquidity of the Company or the industry to differ materially from the results expressed or implied in this Presentation by such forward-looking statements. Neither this Presentation nor the information contained herein is being issued, nor may this Presentation nor the information contained herein be distributed, directly or indirectly, to or into any jurisdiction in which such issuance and/or distribution would be unlawful.

Comments from the Chairman

The Chairman of the Board, Einar J. Greve commented:

Since we took over the rig DVD in March this year we have observed increasing utilisation and higher rates in the UWD market . The BOD believes that this trend will continue. After spending significant time and effort with management and key vendors to de-risk an activation of the vessel by systematic inspections we believe that timeline and activation cost is well under control and can be ready to drill on short notice. There is a constant dialogue and interaction and tendering activity with clients needing modern units to execute safe and efficient operations in challenging areas around the world. The board believes that our vessel with its capabilities and quality will be a top tear asset for clients in the UDW segment going forward.

-

Status rig

Current Vessel Status

• The vessel is warm stacked with a crew of 15 persons

• All the main systems onboard are being operated on a regular basis

• Main vendors have conducted a condition assessment of equipment and systems

• A reactivation work scope and related cost have been established

Reactivation Key Parameters

• Based on condition assessments and Class status, work packs have been identified and scheduled

• Class and relevant OEM have been involved in the development and update of the project execution plan

• Critical spares with long lead time has been identified

> Execution Yard:

• Location: Close to key vendors

• Timeline and budget established

Premium 7th Generation Drill ship

D e e p V a l u e D r i l l e r n o w e s t a b l i s h e d i n M a l t a

N e w c o m p a n i e s i n g r o u p

D 1 2 5 0 , M a l t a

D 1 2 5 0 , M a l t a

• D e e p V a l u e D r i l l e r H o l d i n g L t d ( r e g i s t e r e d 1 0 M a y 2 0 2 1 ) R e g i s t e r e d o f f i c e : 1 0 P o l t u a , G . D e b o n o S q u a r e , M s i d a M S

• D e e p V a l u e D r i l l e r L t d ( r e g i s t e r e d 1 0 M a y 2 0 2 1 )

  • R e g i s t e r e d o f f i c e : 1 0 P o l t u a , G . D e b o n o S q u a r e , M s i d a M S

• T h e c o m p a n y i s n o w e s t a b l i s h e d i n M a l t a .

• C E O S v e n d A n t o n M a i e r m o v e d t o M a l t a i n A u g u s t t o s u p e r

• A l l c o m p a n y a c t i v i t i e s a n d s u p p o r t a r e m a n a g e d f r o m t h e o

• O f f i c e p h o n e n u m b e r + 3 5 6 7 9 0 5 7 0 5 7

v i s e a l l o p e r a t i v e a n d a d m i n s i t r a t i v e a c t i v i t i e s .

f f i c e i n M a l t a .

Market charts

Signs of improvement in fundamentals

Utilization has come of worst levels and demand has picked up

Source: Pareto Securities, IHS-Petrodata

Utilization is improving across asset classes

• · 7G and 6G utilization is picking up relatively rapidly
• · 7th gen utilization is driven by a pickup in demand
• · 6th gen utilization is helped along by a pickup in demand, but driven by the scrapping of assets

Demand tilting in favor of high-end units

• · Overall, demand is up ~11% since the lows following COVID-19
• · This has to a large degree benefited the most modern equipment in the market
• · Legacy assets, and several poorly positioned 6th gens, are being scrapped to help the overall market balance

Market outlook

Dayrates have improved meaningfully

Consolidation and restructuring has seemingly contributed to more discipline in the market

Selected fixtures for 7th generation assets

Source: Pareto Securities, IHS-Petrodata

• Dayrates have picked following the restructuring of balance sheets and the reduction in supply that has followed from restructurings and consolidation

• Some fixtures are still coming in at unhealthy levels (ref. SDRL), but the broader market seems more disciplined in bidding
• 2022 rates are establishing around USD ~250'/day
• Uptick in dayrates expected to stagnate somewhat at these levels due to incremental supply potentially coming back at these levels,

R E A C T I V A T I O N P R O C E

• R e a c t i v a t i o n a t Ya r d i n N o r w a y
• I n c i d e n t F r e e e x e c u t i o n
• D e l i v e r a t / b e l o w P r o j e c t C o s t
• S u c c e s s f u l c o m p l e t i o n , m o b i l i z a t i o n a c c e p t a n c e
• P r o j e c t d e l i v e r a b l e s
  • D N V C l a s s r e n e w a l
  • W e l l C o n t r o l c e r t i f i c a t i o n
  • D r i l l i n g P l a n t r e c e r t i fy

a n d s t a r t u p

R e a c t i v a t i o n O bj e c t i v e s

R e a c t i v a t i o n E x e c u t i o n

• P r o j e c t C o s t - \$ 3 0 M i n c l r i s k
• M a i n S c o p e
  • D N V C l a s s r e c e r t i f i c a t i o n
  • O v e r h a u l W e l l C o n t r o l p l a n t
  • R e c e r t i fy d r i l l i n g s y s t e m s
• E x e c u t i o n s t r a t e g y
  • E x p e r i e n c e d e x e c u t i o n t e a m -
  • P S W M o n g s t a d r e s p o n i b l e f o r e q u i p m e n t
    • B O P s r e m o v e d f r o m t h e r i g
  • C o n d i t i o n a s s e s s m e n t o f D r i l l i v e n d o r s

m a n a g i n g e x e c . r e c e r t i f i c a t i o n o f w e l l c o n t r o l

f o r i n s p e c t i o n n g p l a n t e x e c u t e d w i t h k e y

Financial statement

Interim Consolidated Profit and Loss (P&L) Statement

Unaudited amounts in USD

Operating income and expenses

Stacking costs

Other operating expenses

Operating profit/loss before depreciation

Depreciation of assets

Financial income and expenses

Net income/loss

	Notes	4 Janua
	5
n (EBITDA)
	2

Financial statement

Interim Consolidated statement of Financial Position

Unaudited amounts in USD

Assets
Fixed assets
Intangible assets	2
Ships	2
Equipment and other movables
Total fixed assets

Current assets

Debtors

Other short-term receivables

Total receivables

Cash and bank deposits

Total current assets

Total assets

	ഗിര്‍ധ്‍വീന്‍ട് ।
	Equity and liablities
	Equity
30 June 2021	Paid-up equity
	Share capital
7 000	Own stocks
67 849 125	Share premium reser
	Total Intangible asse
4 690
67 860 815	Retained earnings
	Uncovered loss
	Total retained earnir
	Total equity
330 754
330 754	Liabilities
11 109 073	Current debt
	Trade creditors
	Other current debt
11 439 827	Total receivables
79 300 642	Total liabilities

Interim Consolidated statement of Financial Position Unaudited amounts in USD

Equity and liablities
Equity
Paid-up equity
Share capital
Own stocks
Share premium reserve
Total Intangible assets
Retained earnings
Uncovered loss
Total retained earnings
Total equity
Liabilities
Current debt
Trade creditors
Other current debt

Total equity and liabilities

Notes	30 June 2021
3	1 015 261
3	-3 519
3	81 880 257
	82 891 999
	-5 085 498
	-5 085 498
	77 806 501
	1 252 625
	241 516
	1 494 141
	1 494 141
	79 300 642

Financial statement

Interim Consolidated Indirect cash flow Unaudited amounts in USD 4 January - 30 June 2021 Notes -5 089 017 779 130 1 252 625 -96 238 Net cash flows from operating activities -315 500 2 Payments for the purchase of fixed assets 68 632 945 Net cash flows from investment activities -68 6374945 ח 82 895 518 Net cash flows from financing activities 37895518

NRS Indirect method

Cash flow from operating activities Profit loss before tax Ordinary depreciation Change in accounts payable Change in other accrual items Cash flow from investment activities Cash flows from financing activities

Proceeds from equity

Net change in cash and cash equivalents Cash and cash equivalents at the end of the period

11 109 073 II 103 073

NOTES to the Financial statements

Notes to the Financial statements

Note 1: Summary of Significant Accounting Policies Company overview

Deep Value Driller AS is a company whos purpose is contracting, managing and owning drilling rigs.

Basis for preparation

The interim report which has not been audited by the Company's independent auditor, has been prepared in compliance with the provisions laid down in the Norwegian Accounting Act and generally accounting principles in Norway.

Note 2: Assets	Intangible assets	Equipment etc.	Rig	lotal
Acquisition of fixed assets		5116	68.627 11	68
Acquisition cost 30 June 2021		5 16	68 627 711	68
Depreciation for the period	118	476	778 586
Book Value 30 June 2021	7 000	4 590	67 849 175	67
Economic lite	5 years	3 years	5-20 years

NOTES to the Financial statements

Note 3: Equity	Share capital	Own Stocks	Share Premium	Equity/loss	101
Founded 4 January 2021	לכי כי כי כ
Capital increase	1011 729		83 997 035
Capital raise cost			-2-16 /78
Own shares		-3-19		3 519
Loss for the period				-5 089 017
Book Value 30 June 2021	1 015761	-3 519	81880757	-5 085 498	7

NOTES to the Financial statements

Note 5: Shareholders above 1% as of 30 June 2021
Shares	%	Shareholder
8 518 375		9,87 % Goldman Sachs & Co. LLC
6 080 000		7,05 % UTHALDEN AS
5 500 000		6,37 % SOLAN CAPITAL AS
3 220 865		3,73 % VERDIPAPIRFONDET FIRST GENERATOR
3 000 000		3,48 % PORTIA AS
2 500 000		2,90 % TORSTEIN INGVALD TVENGE
2 500 000		2,90 % INAK 3 AS
2 100 000		2,43 % CAMACA AS
2 049 000		2,37 % CLEARSTREAM BANKING S.A.
1 981 000		2,30 % Euroclear Bank S.A./N.V.
1 500 000		1,74 % BORG CAPITAL PARTNERS AS
1 500 000		1,74 % AS CLIPPER
1 500 000		1,74 % CIPRIANO AS
1 500 000		1,74 % ALDEN AS
1 500 000		1,74 % FORTE NORGE
1 500 000		1,74 % JPMorgan Chase Bank, N.A., London
1 500 000		1,74 % DnB NOR Bank ASA
1 400 000		1,62 % FORTE TRØNDER
1 200 000		1,39 % MELESIO INVEST AS
1 200 000		1,39 % HØGSET HOLDING AS
1 200 000		1,39 % KRISTIANRO AS
1 193 601		1,38 % UBON PARTNERS AS
1 000 000		1,16 % A HOLDINGS AS
1 000 000		1,16 % THOR HUSHOVD
1 000 000		1,16 % T KOLSTAD EIENDOM AS
1 000 000		1,16 % FOUGNER INVEST AS
1 000 000		1,16 % TTC INVEST AS
997 479		1,16 % TIGERSTADEN AS