Offshore staff

HOUSTON -- Premium Drilling signed a letter of intent covering use of Deep Driller 3 for a year off Southeast Asia starting 2Q07. The contract will include two optional contract periods of a year each at rates to be determined.

TheDeep Driller 3 is a KFELS Super B class jackup designed to work with extreme
high pressures and temperature down to 35,000 ft drilling depth and is capable of operating in a skid-off mode.

9/15/06