Ability Drilling AS (OSL:ADRL) Ability Drilling Buys Back Debt

Ability Drilling AS (OSL:ADRL) Date: 6 January 2009

Ability Drilling buys back debt

Ability Drilling has repurchased NOK 118 million of the outstanding bonds loans. The repurchase was completed at a discount of 53 % on average. Isolated, this buyback of debt will provide a gain of NOK 63 million in Q4 2008.

Following the repurchase, the total outstanding bond loans have been reduced to NOK 303 million. As per 30 September 2008, Ability Drilling had NOK 314 million of cash and cash equivalents.

Hans Petter Eikeland, CEO in Ability Drilling, commented: "The repurchase of debt means significant lower financial expenses going forward, but not changed future investment schedule."

For further information, please contact:

CEO Hans Petter Eikeland, phone +47 56 32 43 43, or +47 93 20 81 77

About Ability Drilling ASA: Ability Drilling aims to become the preferred operator and provider of Rack & Pinion (R&P) rigs in its defined core markets, by combining fourth generation drilling technology with outstanding drilling experience from offshore North Sea exploration and production activities.

The Company currently targets onshore oil operations in the MENA (Middle East North Africa) market, the geothermal market in Europe, as well as the market for drilling of LNG reservoirs. Both the land rig market in MENA and the geothermal segment in Europe are markets with strong growth and significant potential, while the market for drilling of LNG reservoirs is an emerging growth segment. Ability Drilling targets extension of the geographical footprint within all current focus areas.

Ability Drilling has so far ordered 11 rigs, of which 9 land rigs, one 150 T workover rig and one 150 T Ultra Light Drilling Rig. In addition, the company has options with construction partner TTS Sense for 33 additional land rigs and 40 additional workover rigs.

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

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

Ability Drilling AS

http://www.ability-drilling.com/

ISIN: NO0010333024

Stock Identifier: OSE.ADRL