KS Energy has taken delivery of KS Medstar-1 and the rig began its contract with Belayim Petroleum Company (“Petrobel”), on April 11, 2008 in the Mediterranean Sea. Petrobel is a joint venture between the Egyptian General Petroleum Corporation and Agip/ENI, the petroleum company of Italy.

The contract is for a period of 3 years with contract value of US$130 million plus a renewal option for one year. When the renewal option is exercised, the value of the contract will be increased to US$175.2 million.