NorAm Drilling AS — Earnings Release 2023

Nov 8, 2023

NorAm Drilling AS (NORAM) – Monthly rig update and key information relating to the cash distribution for November 2023

Oslo, Norway, November 8, 2023

Commercial update:

In October 2023, the Company's 11 drilling rigs achieved an average operating day rate of approximately USD 27,700(1) and rig utilization was 76.9%.

As of November 8, 2023, approximately 82% of available rig days in November are contracted at an average operating day rate of approximately USD 26,800. The contracted backlog(2) beyond November was approximately USD 13.3 million with an average daily operating rate of approximately USD 26,900(1).

Currently 9 of 11 rigs are contracted and working. We expect activity to pick up early in 2024 and plan to keep the idle rigs warm-stacked for now. During the time between contracts, the Company expects the rigs' opex to be approximately 30% lower than in a contracted mode.

Cash distribution:

The Board of Directors approved today a monthly cash distribution of USD 1.7 million or USD 0.04 per share for November 2023. The distribution will be made from the Company's Contributed Surplus account which consists of previously paid in share premium transferred from the Company's Share Premium account.

Key information:

Distribution amount: USD 0.04 per share

Declared currency: US\$. Payment to shares registered with Euronext VPS will be distributed in NOK(3)

Date of approval: November 8, 2023

Last day including right: November 13, 2023

Ex-date: November 14, 2023

Record date: November 15, 2023

Payment date: On or about November 20, 2023

For further queries, please contact:

Marius Furuly, Director of IR and Strategy Tel: +47 90626191

About NorAm Drilling

NorAm Drilling owns and operates a portfolio of eleven advanced drilling rigs upgraded to maximize drilling efficiency in the Permian Basin in Texas, which is the largest oil producing region in North America. NorAm Drilling is debt free and has industry leading operating margins. The Company has a full pay-out dividend strategy, targeting frequent cash distributions in a profitable market.

www.noramdrilling.com

• (1) Excluding add-on rates for equipment rentals, additional crew and overtime.
• (2) The contracted backlog only includes the fixed part of 'pad to pad' agreements, where the contract rate is agreed before commencing drilling on a new pad, typically with 2-3 month intervals.
• (3) The applicable USDNOK FX rate will be announced in the Company's ex dividend release before market open on November 14.