Blake Offshore wins drilling contract

Blake Offshore has recently entered into a contract with Pacific Energy Alaska Operating, LLC, a subsidiary of Pacific Energy Resources, Ltd. The contract term is for a three-year initial term to utilize the Blake Rig 151 for drilling in the Cook Inlet off the coast of Alaska. The contract is valued at $156 million. Mobilization is tentatively scheduled for December 2008, subject to transport availability.

Mike Blake, President & Managing Partner commented that, the new relationship with Pacific Energy represents Blake’s commitment to continued customer and market expansion both domestically and abroad.

While the first quarter has been unusually slow, the Company has been quite successful in obtaining a very respectful backlog of work for its remaining fleet that will begin materializing shortly. Our performance is expected to improve substantially during the remaining quarters of 2008 as domestic utility and rates improve and certain international prospects materialize.