Prospector Offshore Drilling Announces Letter of Award from Total E&P UK Limited and Elf Exploration UK Limited for Drilling Contract in North Sea

Prospector Offshore Drilling announced that on April 25, 2012, one of the Company's subsidiaries received a Letter of Award (the Award) from Total E&P UK Limited and Elf Exploration UK Limited (together, Total E&P UK) for a drilling contract in the United Kingdom (UK) North Sea for its first jack-up rig, Prospector Rig 1. The Award is subject to execution of a mutually-agreed drilling contract (the Contract), which is expected to be completed later in the second quarter of 2012. Under the expected Contract terms, the Contract would have an initial duration of 690 days. Total E&P UK would have the right to extend the initial Contract term for additional well testing and would have an option to drill two additional wells. If Total E&P UK exercised its right to do additional well testing on the initial wells and its option to drill the two optional wells, the Contract duration could be extended up to one to two years. The total aggregate revenue for the initial 690-day Contract is estimated to be approximately USD 135 million. The drilling program is expected to commence in the second quarter of 2013, following the delivery of Prospector Rig 1 from the shipyard in China, which is expected to occur in January 2013.