Date: 23 January 2009

Ability Drilling and Geoenergie Bayern cancel agreement

Ability Drilling and Geoenergie Bayern  have agreed to terminate  its
agreement. The agreement  included a drilling  contract for land  Rig
no. 2,  originally scheduled  to start  operations in  Germany in  Q4
2008.

According to CEO Hans Petter  Eikeland there are several reasons  for
the termination  of the  agreement:  "Delivery delays  triggered  the
customer's decision regarding land rig no. 2, but the overall picture
with lower energy prices worldwide,  which is related to the  current
situation in the world economy, is also an important factor. We could
not agree  on the  terms  for a  future  partnership and  decided  to
terminate the agreement."

Mr. Eikeland  still believes  geothermal drilling  is an  interesting
market for Ability Drilling, but expects that it will take some  time
before the availability of projects improves. "Our rigs are very well
suited for this type of projects, and we are in contact with  several
possible future  customers.  However,  we believe  that  both  credit
issues and energy prices will slow down the market for a while."

The CEO confirms that Ability  Drilling is negotiating new  contracts
for the rigs available for the market. "Negotiations are  progressing
well for all rigs, but the termination of contracts with Porosity and
Geoenergie negatively impacts our business in the current quarter  as
we cannot  employ the  rigs  over the  night. Consequently,  we  have
reduced manning and cost to adapt  to the current situation while  we
are finalising new contracts. We expect this to be solved in Q1."


For further information, please contact:

CEO Hans Petter Eikeland, phone +47 56 32 43 43, or +47 93 20 81 77
CFO Kenneth Tunes, tlf. 56 32 43 43, eller 91 54 49 01


About Ability  Drilling  ASA: Ability  Drilling  aims to  become  the
preferred operator and provider  of Rack & Pinion  (R&P) rigs in  its
defined  core  markets,  by  combining  fourth  generation   drilling
technology with outstanding drilling  experience from offshore  North
Sea exploration and production activities.

The Company  currently targets  onshore oil  operations in  the  MENA
(Middle East North Africa) market,  the geothermal market in  Europe,
as well as the market for  drilling of LNG reservoirs. Both the  land
rig market in MENA and the  geothermal segment in Europe are  markets
with strong growth  and significant potential,  while the market  for
drilling of LNG  reservoirs is  an emerging  growth segment.  Ability
Drilling targets extension of  the geographical footprint within  all
current focus areas.

Ability Drilling has so  far ordered 11 rigs,  of which 9 land  rigs,
one 150 T workover  rig and one  150 T Ultra  Light Drilling Rig.  In
addition, the company has options with construction partner TTS Sense
for 33 additional land rigs and 40 additional workover rigs.

Ability Drilling is listed on Oslo Axess, with ticker ADRL.


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