HAMILTON, BERMUDA - 15 October 2009

Scorpion Nederlandse B.V, Venezuela Branch., a wholly-owned
subsidiary of Scorpion Offshore Ltd. ("Scorpion" or the "Company")
has commenced demobilization operations from the URUMACO I (COR-AX)
well (the "Well") located in the Gulf of Venezuela.

The Offshore Vigilant had been conducting operations on the Well for
UrdanetaGazprom-1 S.A. ("Gazprom") since November 2008. The Company
has contracts with two Gazprom affiliates (the "Contracts") each for
one well plus options for two additional wells.

Gazprom has advised Scorpion of its decision to plug and abandon the
Well and that UrdanetaGazprom-2 S.A. was not in a position to
commence operations on the second well in direct continuation of the
first well as provided in the Contracts. Gazprom has requested that
Scorpion demobilize the rig to Trinidad until further notice. All
costs associated with the demobilization are for the account of
Gazprom.

Currently, the Offshore Vigilant is under tow in international waters
and expected to arrive in Trinidad later this week. The Company is in
discussions with Gazprom regarding its future plans and also
discussing the near term potential availability of the Rig with
prospective clients in the region.

Scorpion has outstanding receivables totaling approximately $29
million due from Gazprom. Gazprom has indicated that they anticipate
settling the outstanding amounts on 26 October 2009.

Scorpion Offshore Ltd. is a Bermuda based corporation founded in 2005
to own and operate state-of-the-art offshore drilling rigs.

Contacts:

Jon Cole, President and CEO (713) 728-6100
Mark Mey, SVP and CFO (713) 728-6100
www.scorpionoffshore.com


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