INTRODUCTION

We refer to the announcement dated 1 September 2010 by SapuraCrest Petroleum Berhad where it was announced that its subsidiary, Tioman Drilling Company Sdn Bhd ("Tioman"), had secured a contract for the deployment to and utilisation by CARIGALI PTTEPI OPERATING COMPANY SDN BHD ("CPOC") and CARIGALI-HESS OPERATING COMPANY SDN BHD of the self-erecting tender rig, the T-6 ("T-6 Contract").

The T-6 Contract was for an initial duration of 28 months commencing from 21 December 2010. Apart from the primary period, there was an option for two extensions of three months each.

CONTRACTUAL EXTENSION

The Company is pleased to announce that Tioman has, on 8 October 2012, received confirmation that CPOC has agreed to extend the T-6 Contract for a further duration of three months commencing from 21 April 2013 until 20 July 2013 ("Contract Extension").

CONTRACT VALUE

The Contract Extension for the period is valued at approximately USD9.2 million.

EFFECT ON THE ISSUED AND PAID-UP CAPITAL OF THE COMPANY

The Contract Extension will have no effect on the issued and paid-up capital of the Company and is expected to contribute positively towards the Group's earnings and net tangible assets for the financial year ending 31 January 2014.

RISKS FACTORS

Risk factors affecting the Contract Extension include execution risks such as availability of skilled manpower and materials, changes in prices of materials, and changes in political, economic and regulatory conditions. The Company has throughout the years established its track records and expertise to undertake such projects. As such, the management believes that the Company is able to mitigate the abovementioned risk factors.

DIRECTORS AND MAJOR SHAREHOLDERS' INTEREST

None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders has any direct or indirect interest in the award of the Contract Extension.

This announcement is dated 17 October 2012.