PRESS RELEASE

SHELF DRILLING REPORTS FIRST QUARTER 2025 RESULTS

Dubai, UAE, May 12, 2025 - Shelf Drilling, Ltd. ("Shelf Drilling", "SDL" and,
together with its subsidiaries, the "Company", OSE: SHLF) announces results for
the first quarter of 2025 ended March 31. The results highlights will be
presented by audio conference call on May 12, 2025 at 5:00 pm Dubai time / 3:00
pm Oslo time. Dial-in details for the call are included in the press release
posted on May 5, 2025 and on page 3 of this release.

Greg O'Brien, Chief Executive Officer, commented: "During the first quarter of
2025, Shelf Drilling delivered excellent operating and financial results. With
total fleet uptime of 99.4% for the quarter, we continued our strong level of
operational efficiency from 2024 demonstrating the execution capabilities of our
offshore and onshore teams. Adjusted EBITDA increased sequentially to $96
million, representing a 40% margin, primarily due to the Shelf Drilling Barsk
and the Main Pass IV operating for a full quarter in Norway and Nigeria,
respectively, following the rig contract commencements in the prior quarter. Our
quarterly capital spend was reduced to $16 million, which also contributed to
strong cash flow generation.

Following the recent announcement of the early contract termination for the
Shelf Drilling Winner in Denmark, we have revised our financial guidance for
full year 2025. Adjusted EBITDA is now estimated to be between $310 and $360
million, down $20 million compared to our initial guidance provided earlier this
year. However, we have identified savings across the fleet and lowered our 2025
capital spending guidance range by $25 million. Therefore, we expect to be in a
better cash position at the end of the year than originally anticipated and
maintain strong liquidity through 2026."

O'Brien added: "The recent macroeconomic developments have contributed to
reduced commodity price levels and created some market uncertainty. The contract
suspensions in the Middle East during 2024 continue to impact the global jack-up
market with further dayrate pressure seen in recent months. We have a solid
pipeline of near-term contract opportunities for our rigs with availability in
2025 and 2026 and are also focused on identifying ways to further optimize our
cost structure. We remain committed to delivering safe and reliable services and
providing best-in-class operations to our customers, leveraging our unique
operating platform. We believe we are very well positioned to navigate the
current market challenges and capitalize on the positive long-term outlook in
our sector." 
 
First Quarter Highlights
o Q1 2025 adjusted revenues of $242.7 million.
o Q1 2025 adjusted EBITDA of $96.2 million, representing an adjusted EBITDA
margin of 40%, including $28.0 million adjusted EBITDA from Shelf Drilling
(North Sea), Ltd. ("SDNS") and $68.2 million from the rest of the business.
o Q1 2025 net income of $13.7 million.
o Q1 2025 capital expenditures and deferred costs totaled $15.5 million. 
o The Company's cash and cash equivalents balance at March 31, 2025 was $206.6
million.
o Key rig updates include:
- High Island II was redeployed to West Africa with expected contract
commencement in Q2 2025.
- Shelf Drilling Victory was redeployed to West Africa for new contract
opportunities.
- Trident 16 contract in Egypt was extended until August 2025.
- Main Pass I was divested in Q1 2025 for non-drilling applications.
o Financial guidance for the full year 2025 has been revised and is included in
the "2025 Financial Guidance" section of the Q1 2025 results highlights
presentation on our website.
 
First Quarter Results 
Adjusted revenues were $242.7 million in Q1 2025 compared to $225.4 million in
Q4 2024. The $17.3 million (8%) sequential increase in adjusted revenues was
primarily driven by higher revenues for three rigs that commenced new contracts
in late Q4 2024 and Q1 2025, partially offset by two suspended rigs in Saudi
Arabia earning no revenue in Q1 2025.

Effective utilization marginally decreased to 79% in Q1 2025 from 80% in Q4
2024, mainly due to the suspension of operations for two rigs in Saudi Arabia
and completion of contracts for two rigs in India between late Q4 2024 and Q1
2025. This was partially offset by three rigs that commenced new contracts in
Nigeria, Egypt and Norway during the same period. Average earned dayrate
increased to $94.2 thousand in Q1 2025 from $87.5 thousand in Q4 2024 primarily
due to higher revenues for two rigs in Norway and Nigeria that commenced
operations in late Q4 2024.

Total operating and maintenance expenses were relatively unchanged at $129.4
million in Q1 2025 compared to prior quarter. Lower operating costs for two
suspended rigs in Saudi Arabia were partially offset by higher operating costs
for one rig in Nigeria that started a new long-term contract in late Q4 2024 and
higher mobilization cost for one suspended rig which was redeployed to West
Africa in Q1 2025.

General and administrative expenses increased by $1.0 million in Q1 2025 to
$16.8 million as compared to $15.8 million in Q4 2024. The sequential increase
was primarily due to an increase in compensation and benefit expenses partially
offset by a decrease in provision for credit losses.

Adjusted EBITDA for Q1 2025 was $96.2 million compared to $85.0 million for Q4
2024. The adjusted EBITDA margin of 40% for Q1 2025 increased as compared to 38%
in Q4 2024. The adjusted EBITDA for SDNS increased sequentially to $28.0 million
from $16.7 million primarily due to the commencement of a new long-term contract
in Norway in November 2024.

Capital expenditures and deferred costs decreased to $15.5 million from $31.0
million in Q4 2024. This sequential decrease was primarily due to reduced
spending on fleet spares and increased utilization of existing fleet spares
across the fleet along with lower contract preparation expenditures for two
rigs, one in Norway and one in Nigeria, that commenced new long-term contracts
in late Q4 2024. 

Q1 2025 ending cash and cash equivalents balance was $206.6 million. The
increase of $54.3 million from $152.3 million at the end of Q4 2024 was
primarily due to lower debt service payments, as well as the sale of the Main
Pass I and decreased capital spending in Q1 2025. This was partially offset by
an increase in working capital in Q1 2025.

The Form 10-Q Equivalent, which includes the condensed consolidated financial
statements, and a corresponding slide presentation to address the results
highlights for Q1 2025 are available on the Company's website.

For further queries, please contact:
Douglas Stewart, Executive Vice President and Chief Financial Officer
Shelf Drilling, Ltd.
Tel.: +971 4567 3400
Email : douglas.stewart@shelfdrilling.com

Dial in Details for the Audio Conference call
Participants will receive conference access information only when they register
for the conference via the link below: 

Online Registration:
https://register-conf.media-server.com/register/BI4b8e9c1da30b462aaba928f6ba1f14
1e

Participants must register for the call using online registration. Upon
registering, each participant will be provided with call details.

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, Mediterranean and North Sea. 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 may be 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, users of this information 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.