PRESS RELEASE

SHELF DRILLING REPORTS SECOND QUARTER 2019 RESULTS

Dubai, UAE, August 7, 2019 – Shelf Drilling, Ltd. (“Shelf Drilling” and,
together with its subsidiaries, the “Company”, OSE: SHLF) announces results for
the second quarter of 2019 ending June 30. The results highlights will be
presented by audio conference call on August 8, 2019 at 3:00 pm Dubai time/ 1:00
pm Oslo time. Dial-in details for the call are included in the press release
posted on July 29, 2019.

David Mullen, Chief Executive Officer, commented: “We delivered a very strong
performance in Q2 with outstanding operating and safety results across our
fleet. The successful closing of the transaction with China Merchants in May,
adding four premium newbuild jack-ups to our fleet, further enhances our
competitive position to meet growing market demand and customer requirements.”

Mullen added: “The jack-up rig market is well underway to steady recovery. For
the first time since 2015, marketed utilization for jack-up rigs is above 80%
with more than 370 rigs contracted. With this improving demand, Shelf Drilling
has had continued contracting success across regions and asset classes. Since
the beginning of April 2019, we have added $343 million in contract backlog.
These awards position us very well heading into 2020 as the market continues to
recover from cyclical lows.”

Second Quarter Highlights

• Q2 2019 Revenue of $137.1 million and Adjusted EBITDA of $40.4 million.
Adjusted EBITDA margin was 29%.
• Q2 2019 Net loss of $29.7 million. 
• Q2 2019 Capital Expenditures and Deferred Costs totaled $163.2 million,
including $137.5 million associated with rig acquisitions, $121.8 million of
which related to the acquisition of two premium newbuild jack-ups through
issuance of common shares. Spending associated with existing operations was
$25.8 million.
• The Company’s cash and cash equivalents balance at June 30, 2019 was $71.3
million.
• The Company’s total debt at June 30, 2019 was $888.7 million.
• $846 million in contract backlog at June 30, 2019 across 25 contracted rigs. 
• On May 9, 2019, the Company closed the transaction entered with affiliates of
China Merchants & Great Wall Ocean Strategy & Technology Fund and acquired two
premium newbuild CJ46 jack-ups, the Shelf Drilling Achiever and Shelf Drilling
Journey. Both rigs are currently under operations readiness project. The
bareboat charters for the additional two premium CJ46 jack-ups, the Shelf
Drilling Fortune and Shelf Drilling Victory, are expected to commence during the
second half of 2019. 
• In May 2019, the Company secured a three-year contract for the recently
acquired premium jack-up rig Shelf Drilling Achiever for operations in the
Arabian Gulf, with contract commencement expected in Q4 2019.
• Subsequent to June 30, 2019, the Company has added $254 million in contract
backlog
  o In July 2019, the Company executed a two-year extension for each of the
Shelf Drilling Tenacious and the Shelf Drilling Mentor in continuation of their
existing contracts for operations in the Arabian Gulf. 
  o In July 2019, the Company secured a two-year contract for the Shelf Drilling
Scepter jack-up rig for operations in the Gulf of Thailand. The contract is
expected to commence in December 2019.
  o In July 2019, the Company secured a six-month contract extension on the High
Island VII jack-up rig in direct continuation of its current contract for
drilling operations in the Arabian Gulf. 
  o In July 2019, the Company secured three-year contracts for the C.E. Thornton
and F.G. McClintock jack-up rigs for operations in India. The contracts are
expected to commence in Q4 2019.
  o In August 2019, the Company secured a six-month extension for the Shelf
Drilling Resourceful for operations in Nigeria.

Second Quarter Results

Revenue was $137.1 million in Q2 2019 compared to $147.2 million in Q1 2019. The
$10.1 million decrease (6.9%) in revenue was largely due to the completion of
five contracts during Q1 and Q2 2019 in India and the UAE, lower dayrates for
the extended operation of one rig in the UAE and for one rig that started a new
contract in Saudi Arabia, idle time on one rig in Nigeria starting mid-May and
higher planned out of service time in Saudi Arabia. This was partly offset by
the startup of new contracts in India and the UAE as well as by higher uptime
and revenue efficiency across the fleet.

Total operating and maintenance expenses decreased by $1.3 million (1.4%) in Q2
2019 to $90.9 million compared to $92.2 million in Q1 2019. The decrease was
mainly due to the completion of the four contracts in India in Q1 and Q2 2019,
partly offset by higher standby costs incurred in between contracts for one rig
in Nigeria.

General and administrative expenses were $12.0 million in Q2 2019 compared to
$11.6 million in Q1 2019, primarily due to an increase in share-based
compensation expense. 

Adjusted EBITDA for Q2 2019 was $40.4 million compared to $49.4 million for Q1
2019. The Adjusted EBITDA margin for Q2 2019 was 29% compared to 34% in Q1 2019.

Capital expenditures and deferred costs were $163.2 million in Q2 2019 compared
to $26.9 million in Q1 2019. This included $121.8 million in Q2 2019 for the
non-cash acquisition of the Shelf Drilling Achiever and Shelf Drilling Journey
as well as $15.6 million relating to the reactivation and operations readiness
projects on the acquired rigs, compared to $4.9 million in Q1 2019 for the Shelf
Drilling Scepter reactivation. Capital expenditures and deferred costs excluding
rig acquisitions increased to $25.8 million in Q2 2019 from $22.0 million in Q1
2019 mainly due to a higher level of spending associated with a planned out of
service project for a rig under contract in Saudi Arabia and higher contract
preparation and activation costs in Q2 2019 in India and Tunisia.

The Condensed Consolidated Interim Financial Statements and the Board of
Directors report are available in the interim report on our website. A
corresponding slide presentation to address the results highlights for Q2 2019
is also available on the Company website.

For further queries, please contact: 
Greg O'Brien, Executive Vice President and Chief Financial Officer 
Shelf Drilling, Ltd. 
Tel.: +971 4567 3616 
Email: greg.obrien@shelfdrilling.com

About Shelf Drilling 
Shelf Drilling is a leading international shallow water offshore drilling
contractor with rig operations across Middle East, Southeast Asia, India, West
Africa and the Mediterranean. Shelf Drilling was founded in 2012 and has
established itself as a leader within its industry through its fit-for-purpose
strategy and close working relationship with industry leading clients. The
Company is incorporated under the laws of the Cayman Islands with corporate
headquarters in Dubai, United Arab Emirates. The Company is listed on the Oslo
Stock Exchange under the ticker “SHLF”. 

Special Note Regarding Forward-Looking Statements
Matters discussed in this announcement may constitute forward-looking
statements. Forward-looking statements are statements that are not historical
facts and may be identified by words such as "believe", "expect", "anticipate",
“strategy”, "intends", "estimate", "will", "may", "continue", "should" and
similar expressions. The forward-looking statements in this release are based
upon various assumptions, many of which are based, in turn, upon further
assumptions. Although the Company believes that these assumptions were
reasonable when made, these assumptions are inherently subject to significant
known and unknown risks, uncertainties, contingencies and other important
factors which are difficult or impossible to predict and are beyond its control.
Such risks, uncertainties, contingencies and other important factors could cause
actual events to differ materially from the expectations expressed or implied in
this release by such forward-looking statements. Given these factors, you should
not place undue reliance on the forward-looking statements.

Additional information about Shelf Drilling can be found at
www.shelfdrilling.com.

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.