Ability Drilling - Fourth quarter 2008

The fourth quarter results for Ability Drilling were significantly
negatively affected by non-recurring items, of which NOK 257 million
was impairment of rigs. The impairments totalling NOK - 276 million
lead to an operating profit of NOK - 260 million. The operating
profit before impairments was NOK 18 million. The impairments also
dominates the full year figures, showing a year end loss of NOK - 361
million. However, the impairments have no cash effects and  limited
equity effects due to currency translation differences, meaning that
the company maintain an equity ratio of 47 % and NOK 92 million in
cash balance." We can continue our operation after the revised
strategy with slower roll out of business and lower risk", says CEO
Hans Petter Eikeland.

The impairments are a sum of different factors. A major part is
related to currency effects, but long building time of rigs,
escalated start-up costs and downward trend in market values is also
parts of the picture. "This is of course a setback for us, but we
think the revised strategy can create value for the shareholders
going forward," says Eikeland.

Ability Drilling has entered into joint ventures to get the rigs into
work and faster receive operating income from the assets. Land rig
1will be sold to joint venture with base in Middle East. Ability
Drilling will own 40% of the JV. The JV has an option to purchase
Land rig 2 and 3 as well. It has previously been announced that the
Company went into a JV with MIPPSA and Energy Services Corporation
with scheduled work with Pemex in Mexico. The JV in Middle East is
expected to give operating revenue from third quarter 2009. Revenue
from the other JV can be delayed due to financial and technical
issues.

"Another positive element is that we have agreed with TTS Sense on
the rig program,"says Eikeland.  The companies have agreed on
postponement of the delivery dates for rig 5-9. Ability Drilling has
also obtained the necessary flexibility with respect to rig 5-9."This
means that we can adjust to our new less aggressive roll out plan
with less financial risk," he adds.

Organisation adjustments according to new roll-out plan are
implemented, meaning that the operating expenses are at a minimum to
manage the development of the business." We believe strongly that the
land rig market will be attractive, but we have to adjust to the
effects of delayed deliveries, the financial crisis and a lower oil
price short and medium term", Eikeland concludes.

Full quarterly report and presentation are attached.

For further information, please contact:

CEO Hans Petter Eikeland, phone +47 56 32 43 43 , or +47 93 20 81 77
CFO Kenneth Tunes, phone+47 56 32 43 43 , or +47 91 54 49 01

About Ability Drilling:
Ability Drilling is listed on Oslo Axess, with ticker ADRL.


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