NorAm Drilling AS

Earnings Release • Feb 20, 2023

NorAm Drilling AS - Fourth Quarter 2022 Results

NorAm Drilling AS - Fourth Quarter 2022 Results

Oslo, Norway, February 20, 2023

NorAm Drilling AS (the “Company” or “NorAm”), today reported unaudited results for the three months and twelve months ended December 31, 2022:

HIGHLIGHTS

• Revenue increased to MUSD 29.5, up 11% from the previous quarter

• Adjusted EBITDA increased to MUSD 11.8, up 39% from the previous quarter

• Fleet utilization increased to 99.3% compared to 98.9% in the third quarter 2022

• Average base dayrate increased to $28,100, up 11% from the third quarter 2022

• Current revenue backlog of MUSD 31.2 as of February 20, 2023

Marty L. Jimmerson, Chief Executive Officer & Chief Financial Officer of NorAm Drilling AS commented:

“NorAm is a leading and reliable operator of the US industry’s most advanced onshore drilling rigs. Our focus remains on the Permian Basin where approximately 60% of reserves in the U.S are located, and we have industry leading operating margins after maintenance capital expenditures.

We continue to see a tight market balance for our high end “Super Spec” drilling rigs. In the fourth quarter, our clean dayrate increased by 11% from the last quarter. We have already renewed one contract in the first quarter of 2023 and anticipate additional ongoing contract renewal discussions will reflect higher dayrates compared to the fourth quarter. After prepaying our MUSD 80.0 bond loan in November, NorAm is debt free, and we have already distributed MUSD 13.1 or NOK 3.05 per share in monthly dividends to our shareholders.”

In connection with the release, the Company invites investors and analysts to a live presentation and Q&A on Tuesday, February 21, 2023, at 09:00 AM (EST) / 3:00 PM (CET).

Follow the link to attend the presentation: bit.ly/NorAmQ4Live

Relevant presentation material will on the same day be made available on the Investor Relations section of the Company's website at www.noramdrilling.com.

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 an improving market.

www.noramdrilling.com