<PAGE>
FILING
------
EXPLANATORY NOTE: Sonat Offshore Drilling Inc. intends to utilize the following
presentation materials in connection with its discussions with shareholders of
Transocean ASA and shareholders of Sonat Offshore regarding the exchange offer
by Sonat Offshore for Transocean shares and certain related proposals to be
voted on by Sonat Offshore shareholders, as more fully described in the
Registration Statement on Form S-4 (No. 333-09105) of Sonat Offshore. These
materials are filed pursuant to Rule 14a-6(c) under the Securities Exchange Act
of 1934.
Cover page: Entitled "Transocean Offshore Inc., Leading In Offshore
Drilling Innovation" with a background of four photographs of drilling rigs, two
of which (the Discoverer 534 and Sonat Richardson) are owned by Sonat Offshore
Drilling Inc. and two of which (the TO8 and Transocean Wildcat) are owned by
Transocean ASA.
<PAGE>
Proposed Combination
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
* Exchange Offer 0.53 Sonat Offshore Drilling shares per Transocean share
for 80% outstanding Transocean stock; U.S. $27.25 cash per
Transocean share for remaining 20%
* Conditions 80% of Transocean shares tendered;
Affirmative vote of Sonat Offshore Drilling shareholders
* Status Transocean Board recommends acceptance:
Sonat Offshore Drilling Board recommends affirmative vote;
Tiger has committed to tender its shares
* Timing Sonat Offshore Drilling special meeting and termination of
formal exchange offer on September 3, 1996
</TABLE>
1
<PAGE>
Board of Directors
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
J. Michael Talbert Chairman, CEO, Transocean Offshore
Sonat Offshore Nominees
- -----------------------
Richard D. Kinder President, COO, Enron Corp.
Ronald L. Kuehn Chairman, President, CEO, Sonat Inc.
Robert J. Lanigan Chairman Emeritus, Owens-Illinois Inc.
Max. L. Lukens President, COO, Baker Hughes Inc.
Martin B. McNamara Partner-in-Charge, Gibson, Dunn & Crutcher
(Dallas Office)
Transocean ASA Nominees
- -----------------------
Fridtjof Lorentzen Chairman, CEO, Lorentzen Skibs AS
Reidar Lund President, CEO, Transocean ASA
Einar Kloster President, Eki AS
Kristian Siem Chairman, Norex America Inc.
</TABLE>
2
<PAGE>
Chart entitled "Management and Organization Structure" which indicates
the management and organization of the new organization as follows: Mr. J.
Michael Talbert is Chairman and CEO with the corporate functions of
finance/accounting, mobile rig marketing, human resources and legal reporting
directly to him. In addition, W.D. Heagney, President Houston Operations and
Reidar Lund, President and CEO Transocean ASA report directly to Mr. Talbert.
Under Mr. Heagney are the following functions: mobile units, drilling services
and technical services. Under Mr. Lund are the following functions: mobile
units, platform drilling and well intervention and engineering and construction.
3
<PAGE>
Benefits of the Transaction
- --------------------------------------------------------------------------------
* Creates world's premier deepwater, harsh environment driller
* Enhances diversity of markets, services and customers, thus increasing
opportunities and decreasing business risk
* Results in a strong balance sheet and exceptional fleet contract
portfolio, thus providing significant financial flexibility
* Increases market capitalization and liquidity of stock
4
<PAGE>
Graph entitled "Worldwide Competitive Floater Active Supply, July 1986 -
July 1996" and showing demand for drilling rigs, active supply and utilization
over time. The data, from Offshore Data Services, is as follows:
Time Demand* Active Supply* Utilization
- ----------------- ------ ------------- ------------
July 1986 105 183 57%
August 1986 99 181 55%
Sept. 1986 104 174 60%
October 1986 98 169 58%
Nov. 1986 95 166 57%
Dec. 1986 94 165 57%
Jan. 1987 94 162 58%
Feb. 1987 86 159 54%
March 1987 85 155 55%
April 1987 83 144 58%
May 1987 92 146 63%
June 1987 101 151 67%
July 1987 106 152 70%
Aug. 1987 99 147 67%
Sept. 1987 106 144 74%
Oct. 1987 108 142 76%
Nov. 1987 113 144 78%
Dec. 1987 115 145 79%
Jan. 1988 123 149 83%
Feb. 1988 120 149 81%
Mar. 1988 124 149 83%
April 1988 122 147 83%
May 1988 124 150 83%
June 1988 127 147 86%
July 1988 124 148 84%
Aug. 1988 124 147 84%
Sept. 1988 122 148 82%
Oct. 1988 116 148 78%
Nov. 1988 115 146 79%
Dec. 1988 111 146 76%
Jan. 1989 106 146 73%
Feb. 1989 107 145 74%
March 1989 110 145 76%
April 1989 116 148 78%
May 1989 119 148 80%
June 1989 125 146 86%
5
<PAGE>
July 1989 128 146 88%
Aug. 1989 120 142 85%
Sept. 1989 115 144 80%
Oct. 1989 113 144 78%
Nov. 1989 120 140 86%
Dec. 1989 122 141 87%
Jan. 1990 119 142 84%
Feb. 1990 120 142 85%
Mar. 1990 123 138 89%
April 1990 127 140 91%
May 1990 131 141 93%
June 1990 129 146 88%
July 1990 133 146 91%
Aug. 1990 131 146 90%
Sept. 1990 136 146 93%
Oct. 1990 139 146 95%
Nov. 1990 135 146 92%
Dec. 1990 136 146 93%
Jan. 1991 134 146 92%
Feb. 1991 122 146 84%
March 1991 135 149 91%
April 1991 140 151 93%
May 1991 137 149 92%
June 1991 142 152 93%
July 1991 137 150 91%
Aug. 1991 132 149 89%
Sept. 1991 131 148 89%
Oct. 1991 133 149 89%
Nov. 1991 133 150 89%
Dec. 1991 128 149 86%
Jan. 1992 125 147 85%
Feb. 1992 121 147 82%
Mar. 1992 126 148 85%
April 1992 125 148 84%
May 1992 120 149 81%
June 1992 119 147 81%
July 1992 114 147 78%
Aug. 1992 115 146 79%
Sept. 1992 113 145 78%
Oct. 1992 115 143 80%
Nov. 1992 108 138 78%
Dec. 1992 106 133 80%
Jan. 1993 108 134 81%
6
<PAGE>
Feb. 1993 109 133 82%
March 1993 110 131 84%
April 1993 113 130 87%
May 1993 111 129 86%
June 1993 110 129 85%
July 1993 115 129 89%
Aug. 1993 119 129 92%
Sept. 1993 111 126 88%
Oct. 1993 117 126 93%
Nov. 1993 117 126 93%
Dec. 1993 115 125 92%
Jan. 1994 116 126 92%
Feb. 1994 115 126 91%
Mar. 1994 109 126 87%
April 1994 105 127 83%
May 1994 104 127 82%
June 1994 105 127 83%
July 1994 112 128 88%
Aug. 1994 108 127 85%
Sept. 1994 104 127 82%
Oct. 1994 111 128 87%
Nov. 1994 112 127 88%
Dec. 1994 108 125 86%
Jan. 1995 104 124 84%
Feb. 1995 110 123 89%
March 1995 111 122 91%
April 1995 117 124 94%
May 1995 117 123 95%
June 1995 116 124 94%
July 1995 117 125 94%
Aug. 1995 115 124 93%
Sept. 1995 120 125 96%
Oct. 1995 118 127 93%
Nov. 1995 118 129 91%
Dec. 1995 118 128 92%
Jan. 1996 120 133 90%
Feb. 1996 125 136 92%
Mar. 1996 127 136 93%
April 1996 128 136 94%
May 1996 131 135 97%
June 1996 133 137 97%
July 1996 133 137 97%
* Number of drilling rigs
7
<PAGE>
Graph entitled "Worldwide Competitive Floater Active Supply, July 1986 -
July 1996" and showing demand for drilling rigs, active supply and utilization
over time. The data, from Offshore Data Services, is as follows:
<TABLE>
<CAPTION>
Time Demand* Active Supply* Utilization
---- ------ ------------- ------------
<S> <C> <C> <C>
July 1986 105 183 57%
March 1987 85 155 55%
Nov. 1987 113 144 78%
July 1988 124 148 84%
March 1989 110 145 76%
Nov. 1989 120 140 86%
July 1990 133 146 91%
March 1991 135 149 91%
Nov. 1991 133 150 89%
July 1992 114 147 77%
March 1993 110 131 84%
Nov. 1993 117 126 93%
July 1994 112 128 87%
March 1995 111 122 91%
Nov. 1995 118 129 91%
July 1996 133 137 97%
</TABLE>
- ------------------
* Number of drilling rigs
8
<PAGE>
Bar graph entitled "Wells Drilled" and depicting the number of wells
drilled in over 2000 feet for the years 1980 to the present. The data is from
Offshore Data Services and the U.S. Department of Energy and is as follows:
<TABLE>
<CAPTION>
Year Wells Drilled
---- -------------
<S> <C>
1980 14
1981 4
1982 8
1983 5
1984 19
1985 28
1986 31
1987 38
1988 32
1989 30
1990 28
1991 36
1992 16
1993 26
1994 74
1995 84
1996 to date 45
</TABLE>
9
<PAGE>
Three pie charts entitled "Contract Status of Strategic Floaters, 1997-99".
The floaters depicted include all 4th generation semis, dynamically positioned
drillships and the best of the remaining floaters (representing approximately
36% of the competitive floater fleet). The charts have the following data
points:
1997
----
Contracted - 86%
Option/Discussion - 8%
Available - 6%
1998
----
Contracted - 63%
Option/Discussion - 14%
Available - 23%
1999
----
Contracted - 40%
Option/Discussion - 12%
Available - 48%
10
<PAGE>
Pie chart entitled "Oil and Gas, Prospective Offshore Areas" indicating the
percentage of explored and unexplored areas based upon the Deepstar Project
data. The data is as follows: Unexplored - 60%, Explored - 40%, with 95% of the
unexplored areas being in over 3000 feet of water.
11
<PAGE>
Bar chart entitled "Wells Drilled vs. Oil Price" comparing the wells
drilled in over 2000 feet for the years 1980 to the present in relationship to
the WTI price per barrel of oil. The data is from Offshore Data Services and the
Department of Energy and is as follows:
<TABLE>
<CAPTION>
Year Wells Drilled WTI/Bbl price
---- ------------- -------------
<S> <C> <C>
1980 14 $37.37
1981 4 $36.67
1982 8 $32.75
1983 5 $30.25
1984 19 $29.83
1985 28 $28.08
1986 31 $16.44
1987 38 $19.18
1988 32 $15.96
1989 30 $19.60
1990 28 $24.35
1991 36 $21.56
1992 16 $20.57
1993 26 $18.47
1994 74 $17.19
1995 84 $18.42
1996 to date 45 $20.78
</TABLE>
12
<PAGE>
Pie chart entitled "Worldwide Active, Mobile Offshore Drilling Units" and
indicating the number of units which are (i) bottom supported, (ii) floaters
capable of drilling in less than 3000 feet or (iii) floaters capable of drilling
in more than 3,000 feet. The data is from Offshore Data Services. The data
depicted is as follows: bottom supported - 293 drilling rigs, floaters capable
of drilling in less than 3000 feet - 96 drilling rigs and floaters capable of
drilling in more than 3000 feet - 44 drilling rigs (23 in service and 20
announced upgrades/construction).
13
<PAGE>
Pie charts entitled "Limited Supply of Floaters to Drill Prospective
Offshore Areas" which shows both of the pie charts previously shown separately,
entitled "Oil and Gas, Prospective Offshore Areas" and "Worldwide Active, Mobile
Offshore Drilling Units" with dotted lines indicating that only 43 rigs (23 in
service and 20 announced upgrades/construction) are capable of drilling most of
the 60% unexplored areas.
14
<PAGE>
Pie chart entitled "Creates world's premier deepwater, harsh environment
driller, 3rd and 4th Generation Semisubmersibles" which indicates the number of
competitive 3rd and 4th generation semisubmersibles owned by the identified
companies and the percentage of the total represented thereby. The data is from
Offshore Data Services. The data includes all announced semisubmersible
upgrades. The indicated rig ownership of Sonat Offshore and Reading & Bates
includes beneficial ownership in two rigs owned by Arcade Drilling which is 75%
owned by Reading & Bates and 25% owned by Transocean Offshore. The data is as
follows:
<TABLE>
<CAPTION>
Company Number of Rigs Percentage
------- -------------- -----------
<S> <C> <C>
Transocean Offshore 14.5 22%
Sedco-Forex 12 18%
Diamond Offshore 9 14%
Reading & Bates 5.5 8%
Saipem 3 5%
Smedvig 3 5%
Atwood 3 5%
Global Marine 3 5%
Others (2 each) 6 9%
Others (1 each) 6 9%
</TABLE>
15
<PAGE>
Pie chart entitled "Creates world's premier deepwater, harsh environment
driller, Fourth Generation Semi Ownership" which indicates the number of 4th
generation semisubmersibles owned by the identified companies and the percentage
of the total represented thereby. The data is from Offshore Data Services. The
data includes Sonat Offshore's and Reading & Bates' partial ownership in the two
rigs owned by Arcade Drilling. The data is as follows:
<TABLE>
<CAPTION>
Company Number of Rigs Percentage
------- -------------- -----------
<S> <C> <C>
Transocean Offshore 5.5 42%
Diamond Offshore 3 23%
Reading & Bates 2.5 19%
Smedvig 1 8%
Saipem 1 8%
</TABLE>
16
<PAGE>
Pie chart entitled "Creates world's premier deepwater, harsh environment
driller, North Sea Semisubmersible Leadership", which indicates the number of
competitive and active semisubmersibles located in the North Sea owned by the
identified companies and the percentage of the total represented thereby. The
data includes Sonat Offshore's and Reading & Bates' beneficial ownership in the
rigs owned by Arcade Drilling. The data is from Offshore Data Services. The
data is as follows:
<TABLE>
<CAPTION>
Company Number of Rigs Percentage
------- -------------- -----------
<S> <C> <C>
Transocean Offshore 11.5 24%
Sedco-Forex 9 19%
Diamond 4 9%
Fred Olsen 3 6%
Reading & Bates 4.5 10%
Saipem 3 6%
Smedvig 2 4%
Stena 2 4%
Maersk 2 4%
Deep Sea 2 4%
Others (1 each) 4 9%
</TABLE>
17
<PAGE>
Three pie charts entitled "Creates world's premier deepwater, harsh
environment driller, Deepwater Market Ownership", which indicates the number of
rigs, and percentage of the total represented thereby, of rigs capable of
drilling in greater than 3000 feet, 4000 feet and 5000 feet, respectively, owned
by the indicated companies. The data is from Offshore Data Services and includes
competitive and active rigs and announced upgrades, conversions and new
construction. The data is as follows:
<TABLE>
<CAPTION>
Greater than 3000 Feet
----------------------
<S> <C>
Company Percentage
------- ----------
Transocean Offshore 23%
Diamond 26%
Sedco-Forex 9%
Reading & Bates 9%
Falcon Drilling 9%
Noble 7%
Global Marine 7%
Other 9%
Greater than 4000 Feet
----------------------
Company Percentage
------- ----------
Transocean Offshore 25%
Diamond Offshore 21%
Sedco-Forex 11%
Reading & Bates 7%
Global Marine 7%
Noble 11%
Other 11%
Falcon Drilling 7%
Greater than 5000 Feet
----------------------
Company Percentage
------- ----------
Transocean Offshore 22%
Diamond Offshore 28%
Sedco-Forex 17%
Global Marine 11%
Falcon Drilling 11%
Other 11%
</TABLE>
18
<PAGE>
Bar chart entitled "Creates world's premier deepwater, harsh environment
driller, Enhanced Upgrade Potential" and depicting the current water depth and
potential water depth of certain Sonat Offshore and Transocean rigs. The data
includes rigs under construction or where an upgrade/conversion is underway. The
data is as follows:
<TABLE>
<CAPTION>
Rig Current WD Rating Potential WD Rating
--- ----------------- -------------------
<S> <C> <C>
D. 534 7,800 7,800
D. Enterprise* 7,000 10,000
D. Seven Seas 6,500 7,800
Richardson 5,000 6,000
Marianas* 4,500 6,000
Rather 4,000 6,000
Amirante* 3,500 3,500
Legend 3,500 3,500
Driller 3,000 3,500
Goodrich (25%) 2,000 10,000
Paul Loyd (25%) 2,000 5,000
John Shaw 2,000 3,000
TO8 2,000 5,000
Arctic 1,650 5,000
Polar Pioneer 1,500 5,000
Prospect 1,500 3,500
Saga 1,500 3,500
Searcher 1,500 3,500
</TABLE>
- ------------
* Rig under construction or upgrade/conversion underway
19
<PAGE>
Six pie charts entitled "Creates world's premier deepwater, harsh
environment driller, Purity of Business Focus" with one chart for each of six
companies, indicating the percentage of deepwater/harsh environment rigs and
other rigs, owned by each such company. The data includes all currently owned
and active rigs and announced upgrades, conversions and new construction. The
data also includes Sonat Offshore's and Reading & Bates' beneficial ownership in
the rigs owned by Arcade Drilling. The data is as follows:
<TABLE>
<CAPTION>
Deepwater/Harsh
---------------
Company Environment Rigs/Percentage Other Rigs/Percentage
- ------- ---------------------------- ----------------------
<S> <C> <C>
Transocean Offshore 72% 28%
Diamond Offshore 29% 71%
Reading & Bates 32% 68%
Global Marine 14% 86%
Ensco 0% 100%
Noble Drilling 7% 93%
</TABLE>
20
<PAGE>
Chart entitled "Enhanced Diversity of Markets, Services and Customers,
Geographic Diversity - Floater Fleet" and depicting the location of the floater
fleet of Sonat Offshore and Transocean against the backdrop of a world map. The
data is as follows:
North/Sea; British/Danish Sector: Transocean Rigs - Transocean No. 8,
Transocean Explorer, Transocean
Discoverer, Kan Tan IV (management
only); Sonat Rigs -John Shaw, Paul B.
Loyd, Jr. (25%), and Henry Goodrich
(25%)
North Sea; Norwegian Sector: Transocean Rigs - Transocean Arctic,
Transocean Searcher, Transocean Wildcat,
Treasure Saga, Treasure Prospect; Sonat
Rig -Polar Pioneer
U.S. Gulf: Sonat Rigs - Sonat Rather, Sonat
Richardson, Sonat D-F 96 and 97,
Offshore Marianas, Offshore Amirante,
Discoverer 534 and Discoverer
Enterprise; the Marianas, Amirante and
Enterprise are under construction or an
upgrade/conversion is underway
Brazil: Transocean Rig - Treasure Legend; Sonat
Rig -Discoverer Seven Seas
West Africa: Transocean Rig - Transocean Driller
21
<PAGE>
Chart entitled "Enhanced Diversity of Markets, Services and Customers,
Geographic Diversity - Bottom Supported Fleet" and depicting the location of the
bottom supported fleet against the backdrop of a world map. The data is as
follows:
North Sea; British/Danish Sector: Transocean Rig - Shelf Explorer
North Sea; Norwegian Sector: Transocean Rig - Transocean Nordic
U.S. Gulf: Transocean Rigs - Glomar Adriatic VI and
Glomar Adriatic VII
West Africa: Transocean Rig - Glomar Adriatic V
Middle East: Sonat Rigs - Offshore Jupiter, Offshore
Comet, Interocean III and Offshore
Mercury
22
<PAGE>
Enhanced Diversity of Markets, Services and Customers
- --------------------------------------------------------------------------------
Fully Integrated Drilling Services
* Drilling services to meet specific needs of customers
> turnkey drilling
> other aligned services
* Platform Drilling and Well Intervention
> production drilling and maintenance services on fixed platforms
> drilling solutions - coiled tubing, Rubicon 2000, Chameleon
* Engineering and Construction
> maintenance and modification work
> cost-effective technical solutions
23
<PAGE>
Enhanced Diversity of Markets, Services and Customers
- --------------------------------------------------------------------------------
Strong Customer Relationships
Sonat Offshore Drilling Transocean ASA
----------------------- --------------
Shell Statoil
Amoco/Gupco Norsk Hydro
Norsk Hydro Amerada Hess
Petrobras Saga
Texaco
Exxon
British Petroleum
24
<PAGE>
Bar chart entitled "Significant Financial Flexibility, Fleet Contract
Status" and depicting the contract status as "Firm", "Option" or "Letter of
Intent" for the combined entities' third and fourth generation rigs and
drillships for the years 1996, 1997 and 1998. The data includes rigs under
construction and rigs where a conversion/upgrade is underway. The data is as
follows:
4th Generation
Arctic - Firm: Jan - March 1996 and May 1996 - Sept. 1997
Pioneer - Firm: Jan. 1996 - July 1997; Option: August 1997 - Dec. 1998
Rather - Firm: Jan 1996 - June 1998
Richardson - Firm: Jan 1996 - Jan. 1998; Option: Feb. 1998 - Dec. 1998
TO8 - Firm: Jan. 1996 - March 1997 and May 1997 - Dec. 1998
Goodrich - Firm: Jan. 1996 - Dec. 1998
Loyd - Firm: Jan. 1996 - Dec. 1998
Third Generation
Amirante - Firm: May 1997 - April 1998; Option: May 1998 - Dec. 1998
Driller - Firm: Jan. - Mar. 1996 and May 1996 - May 1997
Legend - Firm: Jan. 1996 - Dec. 1997
Marianas - Firm: August 1997 - Dec. 1998
Prospect (part of Statoil Agreement) - Firm: Jan 1996 - Dec. 1998
Saga (part of Statoil Agreement) - Firm: Jan 1996 - Dec. 1998
Searcher (part of Statoil Agreement) - 1st half of Jan. 1996; Feb.
1996 - Dec. 1998
Shaw - Firm: Jan. 1996 - October 1996; Letter of Intent: Nov. 1996 -
Dec. 1998
25
<PAGE>
Drillships
D 534 - Firm Jan. 1996 and April 1996 - Jan. 1998; Option: Feb. 1998 -
Dec. 1998;
Enterprise - Firm: June 1998 - Dec. 1998
Seven Seas - Firm Jan. 1996 - Nov. 1996 and April 1997 - Dec. 1998;
26
<PAGE>
Significant Financial Flexibility
- --------------------------------------------------------------------------------
Capital Structure
Pro Forma
3/31/96 (1)
($ millions)
--------------
Total assets $2,500
Equity $1,600
Debt $ 560
Debt/total capital 26%
(1) Anchor Drilling sale not reflected
27
<PAGE>
Significant Financial Flexibility
- --------------------------------------------------------------------------------
Credit Agreement
* $600 million facility
- 6 year term
- replace $100 million revolver
* Matrix pricing based on debt/total capital
- anticipate LIBOR plus 45 basis points
- debt/total cap covenant 45% reducing to 40%
* Oversubscribed by over $200 million
- 19 banks participating
* Proceeds used to:
- fund acquisition
- pay-off Transocean debt
28
<PAGE>
Significant Financial Flexibility
- --------------------------------------------------------------------------------
Project Financing
* Future capital requirements
- Amoco (Enterprise and Amirante)
$280 million remaining (1996-98)
- Marianas
$120 million remaining (1996-97)
- Seven Seas
$45 million remaining (1996-97)
- Transocean No. 8
$45 million (1997)
* Project finance (Enterprise and Amirante)
- Evaluating term sheets
- 80% non-recourse financing anticipated
- 100% financing during construction
- LIBOR + 100 basis points
29
<PAGE>
Significant Financial Flexibility
- --------------------------------------------------------------------------------
Pro Forma Merger Analysis
* Rig values - purchase price allocation
- remaining lives - 10 to 25 years
- average 16.7 years
* Earnings impacted by Goodwill
- 40 year amortization
* EPS sensitive to reinvestment assumptions
* Operation synergies and cost savings
- approximately $70 million combined overhead
corporate and local
$5 million in Aberdeen
- operating efficiencies UK vs. Norway
30
<PAGE>
Significant Financial Flexibility
- --------------------------------------------------------------------------------
Pro forma Merger Analysis
* Cash flow accretion
* Flexibility
- stepped-up basis for U.S. tax purposes
- effective tax rate
31
<PAGE>
Bar graph entitled "Increased Market Capitalization and Liquidity, Market
Capitalization Ranking at August 1, 1996 (million)" and depicting the market
capitalization rankings of selected drilling companies. The data is as follows:
Diamond Offshore - $3.362 million (with $1.647 million held by
a controlling shareholder)
Transocean Offshore - $2.551 million
Global Marine - $2.471 million
Ensco - $1.939 million
Noble - $1.875 million
Reading & Bates - $1.530 million
Rowan - $1.279 million
Smedvig - $636 million
32
<PAGE>
Combination Summary
- --------------------------------------------------------------------------------
* Creates world's premier deepwater, harsh environment driller
* Enhances diversity of markets, services and customers, thus increasing
opportunities and decreasing business risk
* Results in a strong balance sheet and exceptional fleet contract
portfolio, thus providing significant financial flexibility
* Increases market capitalization and liquidity of stock
33
