Scorpion Offshore Ltd. Announces 1st Quarter 2010 (Transition Period) Financial Results

HAMILTON, BERMUDA - November 20, 2009

The Board of Directors of Scorpion Offshore Ltd. ("Scorpion" or the
"Company") today approved the Company's unaudited consolidated
financial statements for the quarter ended September 30, 2009. These
financial statements are reported in US dollars and have been
prepared in accordance with US Generally Accepted Accounting
Principles.

Highlights - Quarter ended September 30, 2009
* Revenues for the first quarter 2010 totaled $107.9 million,
  including $4.9 million mobilization revenue and $3.8 million
  revenue booked as a reversal of a credit memo issued last quarter.
  Excluding this credit memo reversal and mobilization revenue,
  revenues increased 118% from the same period last year and 31% from
  last quarter.
* Day rates averaged $182,474 for the quarter as compared to $174,871
  last quarter.
* Average daily rig operating costs were $67,186 for the quarter
  versus $63,393 for the previous quarter.
* Revenue utilization averaged 97.9% for the first quarter, excluding
  the $3.8 million credit memo reversal, compared to 99.2% last
  quarter.
* All six delivered jack ups worked the entire quarter. One jackup is
  under construction.
* Three of six operating rigs achieved over 99% revenue utilization.
* Petrobras has awarded a two year contract extension to the Offshore
  Defender for continued operations offshore Brazil. The existing
  contract has been extended through February 2012.
* The Board of Directors approved changing the Company's year-end
  reporting structure from June 30 to December 31. The change will be
  effective January 1, 2010. The change results in a 6- month period
  ending December 31, 2009 (Transition Period) and the new 2010
  fiscal year starting January 1, 2010.

  Subsequent Events
* On October 15, 2009, the Offshore Vigilant completed demobilization
  from Venezuela after completion of the first well for
  Urdanetagazprom-1 S.A. ("Gazprom"). Scorpion and Gazprom are now in
  mediation over unpaid invoices related to the first well contract.
  As of September 30, 2009, the Company had $33.1 million outstanding
  from Gazprom of which $12.7 million has been subsequently
  collected, resulting in $20.4 million outstanding and past due.
  Management expects the remaining amounts will be collected in full.
* On November 18, 2009, Scorpion signed a contract with an
  independent US oil and gas company for a drilling program for the
  Offshore Vigilant offshore Trinidad. The program has an estimated
  duration between 95 and 135 days with an optional period of an
  additional 60 to 75 days. The contract is expected to begin
  December 1, 2009. This contract brings the Company's backlog to
  $784 million, which is a backlog average of $131 million per rig,
  an average contract length of over 2 years, and an average backlog
  dayrate of $168,438 per day.

  Financial Results

  Net income for the quarter ending September 30, 2009 totaled $26.4
  million, compared to net income of $17.0 million for the previous
  year. Net income was positively impacted by the reversal of $3.8
  million credit memo issued in the previous quarter. Contract
  drilling revenue, excluding mobilization revenue of $4.9 million
  and the $3.8 million credit memo reversal, totaled $99.2 million
  for the quarter which is an increase of 31% over the $75.7 million
  from the previous quarter and 118% over the $45.3 million for the
  same period last year. Operating costs, excluding mobilization,
  totaled $40.0 million for the quarter compared to $30.2 million for
  the previous quarter and $14.2 million for the same period last
  year. Interest expense totaled $15.4 million for the quarter,
  compared to $9.7 million for the previous quarter and $2.4 million
  for the same period last year. The increase in interest expense is
  primarily due to the addition of two short term debt facilities and
  to the reduction in the amount of interest capitalized as the
  number of rigs under construction is now reduced to one.

  As of September 30, 2009, total assets were $1,310.1 million. This
  primarily consists of $61.6 million in cash and cash equivalents,
  $83.6 million in accounts receivable, $126.2 million in assets held
  for sale, and $964.0 million in property and equipment.

  As of September 30, 2009, debt totaled $742.2 million, which is a
  decrease of $43.7 million from $785.9 million for the prior
  quarter, but an increase of $216.0 million from $526.2 million for
  the same period last year. The $43.7 million decrease from the
  prior quarter was due to principal payments made during the
  quarter.

  Shareholders' equity totaled $484.9 million, which is an increase
  of $28.4 million from the previous quarter.

  The full financial report can be downloaded at:
  http://http://www.scorpionoffshore.com/investor/index">http://www.scorpionoffshore.com/investor/indexhtml

  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, CEO (713) 728-6100
  Mark Mey, CFO (713) 728-6100



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