Because of the extremely cyclical nature of the oil services industry, the Board of Directors remains convinced that the Company’s unique business model, a strong balance sheet and a strong cash position, are essential to its financial health and future growth. The general policy of the Company at this time is to allocate profit to equity to allow for reinvestment into the growth of the Company. Thereafter, the Company considers allocation of profit to other alternatives such as stock buybacks or dividends. As of June 6, 2007 the Board has the following shareholder authorizations:

• To issue up to 900,000 free-standing warrants securing stock options for key employees.
• To issue up to 10,570,380 new shares in the Company.
• To buy back shares of the Company’s stock for an aggregate face value of NOK 15,000,000, providing that the holding of the Company’s shares at no time shall exceed 10% of the Company’s share capital. The price to be paid per share shall be minimum NOK 0,25 and maximum shall not exceed the price as quoted on the stock exchange by the time of the acquisition plus 5%. Acquisition and sale of the Company’s own shares can take place in the manner which the Board of Directors considers to be in the company’s best interest, but not through subscriptions of new shares.

The Company has not paid dividends during the last three years.