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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Andrew H who wrote (3003)	11/16/1997 6:20:00 PM
From: John Slater	Read Replies (3) \| Respond to of 95453

For those of you interested in Noble Drilling (NE), I suggest you look at their updated web site.....contains (1) locations of all their rigs (2) current dayrates (3) date contracts expire (4) which conversions are taking place (5) and when these conversions will be online In addtion, here is the text from their monthly rig update (09/26/97) ****** As we approach the fourth quarter of this year, some of the contract developments and rig conversions that we discussed previously are starting to take shape, and we anticipate that they will have a positive impact on our financial results going forward. Overall, we will have 8 long term rig contracts expiring in the fourth quarter, and all are expected to be rolled into new contracts at market dayrates. In addition, it is anticipated that 4 newly refurbished rigs that have never worked for Noble will be placed into service in the upcoming quarter. As noted in last month1s letter, an agreement has been reached with Maersk to extend the contract of the Noble Gus Androes in Qatar at a dayrate in the low $60,0001s. Additionally, we are finalizing the details on an agreement to continue operating the Noble Ed Holt in India on a modified bareboat arrangement. Noble1s portion of the dayrate would be in the mid $40,0001s, and operating costs would be minimal. The rig would require some refurbishments, including the installation of a top drive, before the contract commenced. Some of the recent contract developments include a 3 year agreement with QGPC for the use of the Noble Kenneth Delaney in Qatar at dayrates in the low $60,0001s. The recently acquired unit will undergo some upgrades, including the installation of a top drive, and will be available in late 1997 or early 1998. The upgrade is necessary to bring the rig to Noble1s standard and to meet contract requirements. We are also reviewing several options for the Noble Jimmy Puckett but, to date, nothing has been finalized. Also of note, the Hibernia platform is now operational off the coast of Eastern Canada. Drilling has commenced, and Noble1s contract to operate the drilling equipment will generate revenues of approximately $40,000 per day. The activity on the U.K. platform management business remains steady; we anticipate that it will continue generating approximately $10 million per quarter in revenues for the 14 platform rigs it operates for the remainder of 1997. The current contract with Chevron for the Noble Lloyd Noble has been extended until December 1997 and we received a letter of intent from Chevron for a one-year extension from that time at a dayrate in the high $60,0001s. The Noble Al White, which experienced an additional month in the shipyard for modifications mandated by regulatory authorities, is expected to begin its contract in Norway with Saga Petroleum in October. The dayrate will be in the low $90,0001s. We do not expect the current labor problems on other Norwegian rigs to impact the operations of the Noble Al White. Negotiations are also continuing for the Noble Carl Norberg and the Noble Earl Frederickson, which are contracted to Lagoven in Lake Maracaibo until October 1997. We are reviewing several options, including marketing the rigs to other operators in the region. The refurbishment and conversion of the Noble Bill Jennings to an ERCTM unit is on schedule for a delivery to Pioneer Exploration in early October for a one year contract. The upgrade, which will cost approximately $32 million, is on time and within budget. The conversion of the Noble Leonard Jones to an ERCTM unit is expected to be completed in December. The Jones has not been committed yet, but we have received indications of interest from operators in the U.S. Gulf, as well as in Mexico. Finally, the reactivation of the Noble Lester Pettus and the Noble Fri Rodli as submersibles are expected to be complete in the fourth quarter. All of the submersible rigs will also be marketed as semisubmersible conversions. We still have a number of bids outstanding for EVA 4000TM semisubmersible conversions, and expect to hear the results on some of these bids in the next month. We have made commitments for key components with several equipment manufacturers in anticipation of future contract awards. Please note that this letter and the Rig Fleet Status contain statements of the Company1s or management1s intentions, hopes, beliefs, expectations or predictions of the future, which are forward looking statements. It is important to note that the Company1s actual results could differ materially from those projected in the forward-looking statements. Additional information concerning risk factors that could cause actual results to differ materially from those in the forward looking statements is contained in the Company SEC filings, including, but not limited to, the Company1s report on Form 10-K for the year ended December 31, 1996. We are releasing our Third Quarter earnings on Thursday, October 23, 1997 before the close of market. Our conference call will be on Friday, October 24th at 10:00 CDT. You may call 415-904-7315 to participate. Please feel free to call with any questions.ÿ Steve Manz Investor Relations 713-974-3131