PRESS RELEASE

SHELF DRILLING REPORTS THIRD QUARTER 2019 RESULTS

Dubai, UAE, November 13, 2019 – Shelf Drilling, Ltd. (“Shelf Drilling” and,
together with its subsidiaries, the “Company”, OSE: SHLF) announces results for
the third quarter of 2019 ending September 30. The results highlights will be
presented by audio conference call on November 13, 2019 at 6:00 pm Dubai time /
3:00 pm Oslo time. Dial-in details for the call are included in the press
release posted on November 5, 2019.

David Mullen, Chief Executive Officer, commented: “We had an outstanding
operating and safety performance across our fleet and continue to demonstrate
our ability to meet and exceed our customers’ expectations. Since the beginning
of the third quarter, we have added $433 million of contract backlog for a total
of 22.5 rig years. During Q2 and Q3 2019, we have incurred significant contract
preparation and reactivation costs in advance of long-term contracts which will
yield positive cash flow and returns once rigs enter service beginning in Q4
2019. With 31 of our 34 rigs under contract, our strong customer relationships
and a differentiated operating track record, we are very well positioned as the
jack-up market continues to recover.”


Third Quarter Highlights

• Q3 2019 Revenue of $132.0 million and Adjusted EBITDA of $32.0 million.
Adjusted EBITDA margin was 24%.
• Q3 2019 Net loss of $35.9 million. 
• Q3 2019 Capital Expenditures and Deferred Costs totaled $64.2 million,
including $33.2 million associated with rig acquisitions. Spending associated
with existing operations was $31.0 million.
• The Company’s cash and cash equivalents balance at September 30, 2019 was
$45.7 million.
• The Company’s total debt at September 30, 2019 was $909.1 million, including
$20 million draw-down on the Company revolving credit facility in Q3 2019.
• $977 million in contract backlog at September 30, 2019 across 29 contracted
rigs, up from $846 million and 25 contracted rigs at June 30, 2019. The company
added $282 million through new contracts and extensions during Q3 2019.
• In September 2019, the Company’s Board of Directors approved a share
repurchase program under which the Company may repurchase up to an aggregate of
$25 million of the Company’s common shares over a period of two years. During Q3
2019, the Company repurchased approximately 285,000 shares at an average price
of $2.45 per share.
• Subsequent to September 30, 2019, the Company added $151 million in contract
awards, increasing the number of contracted rigs from 29 to 31.
    o In October 2019, the Company secured four-month extensions for the High
Island II, High Island IV, Main Pass I and Main Pass IV jack-ups in continuation
of their existing contracts in Saudi Arabia. 
    o In October 2019, the Company secured a three-year contract extension on
the High Island VII jack-up rig in direct continuation of its current contract
for drilling operations in the United Arab Emirates. 
    o In October 2019, the Company received an award for a three-year contract
for the Trident II jack-up rig for operations in India.
    o In October 2019, the Company secured a six months extension on the Rig 141
jack-up rig in direct continuation of its current contract for drilling
operations in Egypt.
    o In October 2019, the Company secured a one-well contract on the Baltic
jack-up rig for operations in Nigeria.
• Q4 2019 Revenue guidance range of $156 million – $161 million, up from $132
million in Q3 2019


Third Quarter Results

Revenue was $132.0 million in Q3 2019 compared to $137.1 million in Q2 2019. The
$5.1 million (3.7%) decrease in revenue was largely due to the completion of
three contracts during Q2 and Q3 2019 in India and Nigeria and planned out of
service time for two rigs in Nigeria and one rig in Saudi Arabia. This was
partly offset by the startup of three new contracts in India, UAE and Tunisia as
well as by higher uptime and revenue efficiency across the fleet.

Total operating and maintenance expenses of $91.4 million in Q3 2019 is largely
comparable with Q2 2019 of $90.9 million. An increase in operating expenses in
Nigeria and India (contract preparation expenses for five rigs commencing new
contracts in Q4 2019 and planned out of service time on two rigs in Nigeria) was
partially offset by a reduction across the rest of the fleet.

General and administrative expenses were $12.8 million in Q3 2019 compared to
$12.0 million in Q2 2019, primarily due to an increase in share-based
compensation expense and increased support for deployments of recently acquired
newbuild rigs. 

Adjusted EBITDA for Q3 2019 was $32.0 million compared to $40.4 million for Q2
2019. The Adjusted EBITDA margin for Q3 2019 was 24% compared to 29% in Q2 2019.

Capital expenditures and deferred costs of $64.2 million in Q3 2019 decreased by
$99.0 million from $163.2 million in Q2 2019. This included $33.2 million in Q3
2019 relating to the reactivation and operations readiness projects on the
acquired rigs, compared to $121.8 million in Q2 2019 for the non-cash
acquisition of the Shelf Drilling Achiever and Shelf Drilling Journey and $15.6
million in Q2 2019 relating to the reactivation and operations readiness
projects on the acquired rigs.
 
Capital expenditures and deferred costs excluding rig acquisitions increased to
$31.0 million in Q3 2019 from $25.8 million in Q2 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 costs in Q3 2019
in India. The contract preparation project for a rig in Tunisia was also
completed in Q3 2019.

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 Q3 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.