Scorpion Offshore Ltd. acknowledges the announcement by Seadrill Limited on 12 April 2010 that Seadrill has acquired additional shares in Scorpion at a price of NOK 36.00 per share. With the acquisition of these shares Seadrill stated that it owns 40.1% of Scorpion's issued and outstanding shares.

By increasing its share ownership above 40% of Scorpion, Seadrill is obligated to make a mandatory cash offer for the remaining Scorpion shares or reduce its holding below the 40% threshold within four weeks from 12 April 2010.

Scorpion's Board has engaged Simmons & Company International and is in the process of engaging additional, international financial and other advisors to assist it in evaluating Seadrill's mandatory cash offer as well as strategic alternatives to maximize value for all shareholders of Scorpion. This information will also be communicated to the market in a timely manner.

In due course, as required by Section 6-16 of the Norwegian Securities Trading Act of 2007, after the Board has received advice from its financial and other advisors, the Board will provide a statement setting forth its opinion of the Seadrill bid.

Tags: Scorpion Offshore, Seadrill