NEW CONTRACT AWARD FOR SOLSTAD

The contracts duration is 2 wells firm with option for a further 4 wells. Murphy Semai Oil CO Ltd., Indonesia will employ the vessels in their operations in Indonesia. The vessels are currently employed under a long term contract with Murphy Sabah Oil Co Ltd, Malaysia. Commencement of the new contract is during 4^th quarter 2010. Remaining contract period under existing employment in Malaysia (approximately 5 months firm with option for a further 12 months) are to be completed in direct continuation of the Indonesian operations.

The commercial terms between the parties are confidential, but it gives SOFF an acceptable return on the investment.