HOUSTON, Aug. 29, 2012 /PRNewswire/ -- Northern Offshore, Ltd. (Oslo Bors: NOF.OL) today announced that a subsidiary of the company has entered into a Memorandum of Agreement for the sale of the jackup drilling rig Energy Exerter to an undisclosed buyer.  Closing of the transaction, which is subject to certain routine conditions, is expected by October 19, 2012.  An escrowed deposit equal to ten percent of the purchase price has been received.

The company expects net proceeds from the sale of approximately US$43.5 million, after related expenses, and anticipates recording a net gain from the transaction of approximately US$7.5 million in the quarter the transaction closes.

Gary W. Casswell, Northern Offshore's president and CEO, said, "We are excited to announce the MOA for the sale of the Exerter, as we know the uncertainty of the rig's future has been a predominant spotlight on the company.  The company's directors are currently considering the best use of the proceeds to enhance shareholder value, and we look forward to communicating the results of their discussions as we move nearer to the closing date of the sale."           

About the Company

Northern Offshore, Ltd. is a Bermuda holding company which operates offshore oil and gas drilling units and one production vessel in various markets around the world, including the North Sea, the Indian Ocean, the Mediterranean Sea and Southeast Asia. The company's fleet consists of five drilling units (a drillship, a semisubmersible and three jackup drilling rigs) and one floating production facility.  More information on Northern Offshore, Ltd. may be found by visiting the company's website at http://www.northernoffshorelimited.com.

This announcement contains statements that reflect the company's expectations or predictions of the future. These statements are forward-looking statements.  These forward-looking statements may include statements regarding earnings guidance, capital allocation strategy, the impact of activity levels, business performance, and other market and industry conditions.  The company's actual results could differ materially from those reflected in such forward-looking statements.  Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the company's regulatory filings.  The company disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.   

For further information, please contact:
Brian Hefty at (713) 739-7686, or via email at brian.hefty@northernoffshoreltd.com

SOURCE Northern Offshore, Ltd.