EX-99.1

I am pleased to inform you that, on , 2014, the board of directors of Noble Corporation plc approved the spin-off of Paragon Offshore plc, or Paragon Offshore, an indirect, wholly-owned subsidiary of Noble, through a pro rata share distribution to the holders of ordinary shares of Noble. Paragon Offshore’s assets and businesses generally consist of Noble’s standard specification drilling business. The spin-off of Paragon Offshore to our shareholders enables Noble and Paragon Offshore to each have a more focused business and operational strategy. We believe the spin-off will provide Noble the opportunity to move forward as an industry-leading high specification and deepwater drilling company, and will position Paragon Offshore to leverage its fleet and substantial backlog to focus on the drivers of its particular business segment. Each company will have the assets and personnel that should allow the two companies to optimally market their fleets for the benefit of its shareholders.

As a result of the spin-off, each Noble shareholder will receive one ordinary share of Paragon Offshore for every ordinary shares of Noble held as of 5:00 p.m. New York City time on , 2014, the record date for the spin-off distribution. The distribution of Paragon Offshore shares is expected to occur on , 2014. You do not need to take any action to receive Paragon Offshore ordinary shares in the spin-off. The distribution is subject to several conditions as described in the Information Statement. Paragon Offshore ordinary shares will be issued in book-entry form only, which means that no physical share certificates representing interests in Paragon Offshore will be issued. A book-entry account statement reflecting your ownership of Paragon Offshore ordinary shares will be mailed to you, or your brokerage account will be credited for the shares on or about , 2014.

We intend for the spin-off to be tax-free to our shareholders for U.S. federal income tax purposes (other than with respect to any cash received in lieu of fractional shares). To that end, we have obtained private letter rulings regarding the spin-off from the U.S. Internal Revenue Service. In addition, it is a condition to completing the spin-off that we receive an opinion of counsel substantially to the effect that the spin-off will qualify under Sections 355 and 368 of the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes. The private letter rulings are, and the tax opinion will be, subject to certain qualifications and limitations. Further, there should not be any U.K. tax consequences of receiving the dividend of Paragon Offshore ordinary shares for shareholders who are not tax resident in the U.K. and who do not carry on a trade in the U.K. through a permanent establishment with which their holding of ordinary shares of Noble is associated. You should, of course, consult your own tax advisor as to the particular consequences of the spin-off to you, which may result in the spin-off being taxable to you. If you sell or otherwise transfer your Noble ordinary shares prior to or on the

distribution date, you may also be selling your right to receive Paragon Offshore ordinary shares. You are encouraged to consult with your broker or financial advisor regarding the specific implications of transferring your Noble ordinary shares prior to or on the distribution date.

Following the spin-off, Noble ordinary shares will continue to trade on the New York Stock Exchange under the ticker symbol “NE.” Paragon Offshore intends to apply to list its ordinary shares on the New York Stock Exchange under the ticker symbol “PGN.” You do not need to take any action to receive your Paragon Offshore ordinary shares. You do not need to pay any consideration for your Paragon Offshore ordinary shares or surrender or exchange your Noble ordinary shares.

I encourage you to read the enclosed information statement, which is being mailed to all Noble shareholders. It describes the spin-off in detail and contains important information about Paragon Offshore, including financial statements.

I believe the spin-off is a positive event for our shareholders, and I look forward to your continued support as a shareholder of Noble. We remain committed to working on your behalf to build long-term shareholder value.

It is my pleasure to welcome you as a shareholder of Paragon Offshore plc. Following the spin-off, we will continue our business as a pure-play global provider of standard specification offshore drilling rigs. Our strategy is to deliver our services in an efficient and cost-effective manner. Our primary business is to contract our rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for our exploration and production, or E&P, customers on a dayrate basis around the world.

Our strategy as an independent company will be to maximize the profitability of our operations by (1) focusing on standard specification drilling operations, (2) maintaining and investing in our current fleet of standard specification rigs, (3) capitalizing on increased exploration and development activity, (4) leveraging strategic relationships with high-quality, long-term customers, (5) pursuing strategic growth opportunities and (6) remaining financially disciplined and returning capital to shareholders. As an independent pure-play standard specification offshore drilling company, we believe we can more effectively focus on our standard specification drilling business, and thus bring more value to you as a shareholder.

We expect to list Paragon Offshore ordinary shares on the New York Stock Exchange under the symbol “PGN.”

We thank you in advance for your support as a shareholder of Paragon Offshore, and I invite you to learn more about us by reviewing the enclosed information statement.

Information contained herein is subject to completion or amendment. A registration statement on Form 10 relating to these securities has been filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.

This information statement is being furnished in connection with the distribution by Noble Corporation plc, or Noble, to its shareholders of all of the outstanding ordinary shares of Paragon Offshore plc, or Paragon Offshore. As of the date of this information statement, Noble owns all of Paragon Offshore’s outstanding ordinary shares.

On , 2014, after consultation with financial and other advisors, Noble’s board of directors approved the distribution of 100% of Noble’s interest in Paragon Offshore. You, as a holder of ordinary shares of Noble, will be entitled to receive one ordinary share of Paragon Offshore for every ordinary shares of Noble that you hold as of 5:00 p.m., New York City time, on the record date for the distribution, , 2014. The distribution date for the spin-off will be , 2014.

You will not be required to pay any cash or other consideration for the Paragon Offshore ordinary shares that will be distributed to you or to surrender or exchange your Noble ordinary shares in order to receive Paragon Offshore ordinary shares in the spin-off. The distribution will not affect the number of Noble ordinary shares that you hold. You are not being asked for a proxy and you are requested not to send a proxy.

As discussed under “The Spin-Off—Trading of Noble Ordinary Shares After the Record Date and Prior to the Distribution,” if you sell your Noble ordinary shares in the “regular way” market after the record date and on or prior to the distribution date, you also will be selling your right to receive Paragon Offshore ordinary shares in connection with the spin-off. You are encouraged to consult with your broker or financial advisor regarding the specific implications of selling your Noble ordinary shares on or prior to the distribution date.

There currently is no trading market for Paragon Offshore ordinary shares. However, we expect that a limited market, commonly known as a “when-issued” trading market, for Paragon Offshore ordinary shares will begin on or shortly after , 2014 and will continue up to and including the distribution date, and we expect that “regular way” trading of Paragon Offshore ordinary shares will begin the first day of trading following the distribution date. Paragon Offshore intends to apply to list its ordinary shares on the New York Stock Exchange under the symbol “PGN.”

In reviewing this information statement, you should carefully consider the matters described under the caption “Risk Factors” beginning on page 28.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this information statement is truthful or complete. Any representation to the contrary is a criminal offense.

This information statement does not constitute an offer to sell or the solicitation of an offer to buy any securities.

Noble first mailed this information statement to its shareholders on or about , 2014.

In this information statement, unless the context requires otherwise or we specifically indicate otherwise, the terms “Paragon Offshore,” “our business,” “we,” “our” or “us” or similar terms (a) when used in the historical context, refer to the standard specification drilling business (as defined below) as owned and operated by Noble (as defined below), which business is our Predecessor for accounting purposes, and (b) when used in the present or future context, refer to Paragon Offshore plc, a public limited company incorporated under the laws of England and Wales, together with, where appropriate, its consolidated subsidiaries after the completion of the Transactions (as defined below). “Noble” refers to Noble Corporation plc, a public limited company incorporated under the laws of England and Wales (NYSE: NE) and its subsidiaries. We refer to the ownership and operation of the standard specification offshore drilling rigs and related assets and liabilities of Noble as the “standard specification drilling business.” Our business will include all of Noble’s standard specification drilling business other than three rigs to be retained by Noble. Please read “Business—Our Fleet.”

The transaction in which Noble will distribute Paragon Offshore ordinary shares to Noble shareholders is referred to in this information statement as the “Distribution.” The transactions in which Paragon Offshore will be separated from Noble and will become an independent, publicly traded company, including the Distribution, are referred to in this information statement collectively as the “spin-off.”

This information statement is being furnished solely to provide information to Noble shareholders who will receive Paragon Offshore ordinary shares in the spin-off. It is not provided as an inducement or encouragement to buy or sell any securities of Noble or Paragon Offshore. This information statement describes our business, our relationship with Noble, and how the spin-off affects Noble and its shareholders, and provides other information to assist you in evaluating the benefits and risks of holding or disposing of Paragon Offshore ordinary shares that you will receive in the spin-off. You should be aware of certain risks relating to the spin-off, our business and ownership of Paragon Offshore ordinary shares, which are described under the heading “Risk Factors.” Changes to the information contained in this information statement may occur after the date set forth on the front cover, and we undertake no obligation to update the information contained in this information statement, unless we are required by applicable securities laws to do so.

For more information, please read “The Spin-Off—Reasons for the Spin-Off.”

Nothing in this Information Statement shall be deemed an offer to sell or a solicitation of an offer to buy any debt securities of Paragon Offshore.

Each outstanding Noble equity-based compensation award that is held by an individual who remains with Noble will remain outstanding in accordance with its terms.

Each outstanding option to purchase Noble ordinary shares that is held by an individual who transfers to Paragon will become fully vested, and remain outstanding and be exercisable for five years or, if shorter, the option’s remaining term.

Each outstanding Noble restricted stock units award comprised of time-vested restricted stock units (“TVRSUs”), that is held by an individual who will transfer to Paragon will be cancelled. In replacement of any cancelled Noble TVRSU award, Paragon will grant the individual a Paragon TVRSU award pursuant to its equity compensation program that will be established prior to the spin-off. In addition, the vesting schedule that applied to the cancelled Noble TVRSU will apply with respect to the replacement Paragon TVRSU award.

Each outstanding Noble restricted stock units award comprised of performance-vested restricted stock units (“PVRSUs”), that is held by an individual who will transfer to Paragon will be continued, in part, and cancelled, in part. The portion of each Noble PVRSU award that will be continued (as a Noble PVRSU award) will be based on the portion of the performance period that has elapsed as of the spin-off. The remainder of each Noble PVRSU award that is not continued pursuant to the foregoing will be cancelled. In replacement of the cancelled portion of a Noble PVRSU award, Paragon will either grant the individual a Paragon PVRSU award with the same vesting schedule that applied to the cancelled portion of the Noble award or provide the individual compensation of equivalent value to the benefit the individual would have received had the cancelled portion of the Noble award remained in effect.

All awards described above will be adjusted, as necessary, to generally preserve the intrinsic value of the original award or the portions thereof, as applicable, that are continued or cancelled and replaced in accordance with the foregoing.

For additional information on the treatment of Noble equity-based compensation awards, please read “The Spin-Off—Treatment of Share-Based Awards.”

Before the spin-off, if you have questions relating to the spin-off, you should contact:

SUMMARY

The following is a summary of material information discussed in this information statement. This summary may not contain all the details concerning our business, our shares or other information that may be important to you. You should carefully review this entire information statement, including the “Risk Factors” section and our financial statements and the related notes included elsewhere in this information statement. Some of the statements in this summary constitute forward-looking statements. Please read “Cautionary Statement Concerning Forward-Looking Statements.”

Our Company

We are a pure-play global provider of standard specification offshore drilling rigs by operating revenues. Our drilling fleet consists solely of standard specification rigs and includes 34 jackups and eight floaters (five drillships and three semisubmersibles). This focus on a single specification supports our strategy to deliver our services in an efficient and cost-effective manner. Our primary business is to contract our rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for our exploration and production, or E&P, customers on a dayrate basis around the world.

We believe that the scale of our geographically diverse fleet, well-established customer relationships and multi-year contract backlog position us to take advantage of strong market dynamics in the offshore drilling industry. We operate in significant hydrocarbon-producing geographies throughout the world, including Mexico, Brazil, the North Sea, West Africa, the Middle East, India and Southeast Asia. Our current shallow water, midwater and deepwater operations span 12 countries on five continents and provide services to approximately 17 customers. We have well-established relationships with many of our customers, including Petróleo Brasileiro S.A., or Petrobras; Petróleos Mexicanos, or Pemex; Oil and Natural Gas Corporation Limited, or ONGC; Total S.A., or Total; Nexen Energy ULC, or Nexen; and Centrica plc, or Centrica. In addition, in the five-year period ended March 31, 2014, 22 of our rigs have worked an average of approximately 4.6 years for their current customers. As of March 31, 2014, our pro forma contract backlog was over $2.6 billion and included contracts with leading national, international and independent oil and gas companies. Over 75% of our pro forma contract backlog is attributable to customers with investment grade ratings.

We classify all rigs as either “high specification” rigs or “standard specification” rigs. Our rig classification is based on a number of factors, including age, technological capabilities, size, water depth and load capacity. Standard specification rigs are generally 15 or more years old, have a “hook load,” or derrick hoisting capacity, of less than two million pounds, and have drilling equipment operated by mechanical, rather than electronic, means. Standard specification jackups are generally capable of operating in water depths of up to 390 feet. Standard specification drillships and semisubmersibles are generally capable of operating in water depths of up to 7,500 feet, conducting a single drilling procedure (as compared to a dual-activity or other dual-derrick rigs, which may conduct multiple well-related operations simultaneously) and use moorings or a less advanced dynamic positioning system to maintain position while drilling. Standard specification rigs operate in the same worldwide markets and environments as high specification rigs, subject to their technical capabilities.

We have one of the largest diversified fleets of standard specification offshore drilling rigs in the world. Our jackups provide drilling services in shallow water with capabilities up to a maximum water depth of 390 feet. All of our jackups are independent leg and cantilevered, or ILC, which provides customers greater operational flexibility than some other jackup designs, such as mat-slot, mat-cantilever and independent-slot jackup designs. Seven of our jackups are also capable of operations in harsh environments, which typically command higher dayrates than operations conducted in other environments. Our drillships and semisubmersibles, which we refer to collectively as “floaters,” provide drilling services in midwater and deepwater, with the capability to drill in a maximum water depth of 7,200 feet. Noble has actively invested in our assets through a disciplined capital expenditure program, spending a total of approximately $1.8 billion since January 1, 2010 to refurbish, upgrade

and extend the lives of our rigs. We believe that Noble’s consistent investment in our fleet has allowed us to provide safe, reliable and effective offshore drilling services for our customers and has made our rigs more competitive in the global marketplace.

Our pro forma operating revenues were $456 million and $1.70 billion for the three months ended March 31, 2014 and the year ended December 31, 2013, respectively. Our pro forma operating income was $120 million and $352 million for the three months ended March 31, 2014 and the year ended December 31, 2013, respectively. For more information, please read “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations.”

Our Market Opportunity

We believe the following trends in the oil and gas industry will support our contract drilling services business:

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Global energy demand is expected to continue to increase. According to the International Energy Agency, or IEA, the total global energy requirement is expected to grow to approximately 349 million barrels of oil-equivalent, or BOE, per day in 2035, increasing the demand for oil and gas by approximately 27% from 2011 levels. We believe an overall continued rise in the demand for energy, coupled with natural production decline rates from producing oil and gas reserves, correlates with positive demand for contract drilling services.

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Global E&P spending has increased and a significant portion of future spending is expected to be in water depths we serve. According to Cowen and Company, global E&P capital spending (onshore and offshore) increased from approximately $328 billion in 2003 to over $660 billion in 2013. Oil and gas consultancy Infield Systems Ltd., or Infield, predicts that global offshore E&P spending between 2013 and 2017 in water depths of less than 4,900 feet will total more than $400 billion, representing approximately 74% of the global offshore E&P capital spending. We believe this E&P spending will continue to increase and we will benefit from increased E&P activity offshore.

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Significant oil and gas reserves are present offshore. The 2013 BP Statistical Review of World Energy estimates that current worldwide proved oil and gas reserves total approximately 2.9 trillion BOE. Many regions in which we have an operating presence, such as Mexico, Brazil, the North Sea, West Africa and the Middle East, have major offshore hydrocarbon producing basins which contribute to the proved reserve base. Infield predicts that more than 1,335 new offshore fields will be brought on-stream between 2013 and 2017 with more than 60% of these fields in water depths less than approximately 4,900 feet. We believe that this activity will create exploration and development work opportunities for our rigs.

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Oil prices have supported investment in the offshore E&P industry. Over the past decade, on an inflation-adjusted basis, West Texas Intermediate, or WTI, oil prices have increased from approximately $30 per barrel to more than $90 per barrel and have exceeded $100 per barrel multiple times. According to IEA, oil production costs for conventional oil developments, including shallow water and deepwater resources, range from approximately $10 to $70 per barrel. We believe oil prices would have to decrease significantly from current levels for a meaningful period of time before offshore drilling activity, particularly in shallow water, would be materially impacted.

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We expect the customer base for offshore drilling services to continue to include national, international and independent oil and gas companies. Offshore oil and gas E&P activities are conducted by national, international, and independent oil and gas companies. Offshore E&P activity is a core focus of many of these companies given the attractive full-cycle break-even prices for economic production of offshore oil developments. We believe the variety of types of companies with diverse strategies engaged in offshore oil and gas E&P activities provides us an attractive current and future customer base, making the demand for our services more predictable.

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The jackup market is robust. According to RigLogix, for the month of April 2014, global utilization of non-U.S. standard specification ILC jackups was approximately 82%, with an average dayrate of $110,000. These statistics represent increases in both utilization and dayrates since 2011 and reflect ongoing demand for standard specification jackups in the global marketplace despite an increase in supply from the delivery of 71 new ILC jackups between 2011 and 2013. We believe that we are well-positioned to benefit from this demand given our geographically diverse and well-maintained fleet and its history of operating safety.

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The industry is fragmented and may present acquisition opportunities. The offshore drilling industry is a large and highly fragmented industry comprising more than 100 offshore drilling contractors of which no single contractor has a dominant market share. A number of these contractors may consider divesting some or all of their standard specification rigs, and we believe this market environment may present an opportunity to expand our fleet through value-adding, accretive acquisitions of capable standard specification rigs.

Our Fleet

Our drilling fleet consists solely of standard specification rigs. Our rigs are widely deployed in the global offshore drilling rig market. Our rigs feature proven, reliable technology and processes, utilizing mechanical features with lower operating costs compared to newer, higher specification units. Within their given water depth capabilities, our rigs are suitable for the majority of our customers’ offshore drilling operations.

Our total fleet comprises 42 standard specification offshore drilling rigs, including 34 jackups, eight floaters (five drillships and three semisubmersibles) and one floating production storage and offloading unit, or FPSO. We also provide drilling and maintenance services (but do not provide a rig) on the Hibernia Project in the Canadian Atlantic under a five-year contract with a joint venture in which ExxonMobil Corporation, or Exxon, is the primary operator.

The following charts illustrate pro forma operating revenues generated by our jackups and floaters for the three months ended March 31, 2014, and our pro forma contract backlog attributable to our jackups and floaters as of March 31, 2014.

LOGO

believe these design features provide greater operational flexibility and are generally considered more desirable than alternative designs. Our jackups are capable of drilling in water depths of up to 390 feet. Twenty-one of our 34 jackups can operate in water depths of 300 feet or greater. Seven of our jackups are capable of operating in harsh environments.

Drillships are self-propelled vessels that maintain their position over the well through the use of either a computer-controlled dynamic positioning system or a fixed mooring system. Our drillships are capable of drilling in water depths of up to 7,200 feet.

Semisubmersibles are floating platforms which, by means of a water ballasting system, can be submerged to a predetermined depth so that a substantial portion of the hull is below the water surface during drilling operations in order to improve stability. Our semisubmersibles maintain their position over the well through the use of a fixed mooring system. Our semisubmersibles are capable of drilling in water depths of up to 4,000 feet.

Our Competitive Strengths

We believe we have a number of competitive strengths that will allow us to execute our business strategies successfully:

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Significant scale, size and expertise. We are one of the world’s largest contractors of standard specification offshore drilling rigs. We are one of the primary providers of jackups in Mexico, the North Sea and West Africa and a substantial provider of floaters in Brazil. We believe the established history that our rigs and employees have with national, international and independent oil companies contributes to our credibility and distinguishes us from smaller and regional operators of standard specification offshore drilling rigs.

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Well-maintained “workhorse” fleet of rigs. Our fleet comprises well-maintained drilling rigs with proven technology and operating capabilities. Noble has actively invested in capital expenditures for maintenance, rig reactivations, major projects and upgrades to our fleet, spending a total of approximately $1.8 billion since January 1, 2010, including approximately $0.9 billion for floater-specific major upgrades that we do not expect to incur again for those rigs. We believe that the quality of our fleet and our well-developed maintenance program result in low downtime and strengthen our ability to secure contracts.

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Strong backlog coupled with a well-established customer base and diverse standard specification fleet. As of March 31, 2014, our pro forma contract backlog was over $2.6 billion and included contracts with leading national, international and independent oil and gas companies, including Petrobras, Pemex, ONGC, Total, Nexen and Centrica. As of March 31, 2014, our jackups provided 52% of our pro forma contract backlog, and our floaters provided the remaining 48% of our pro forma contract backlog, which extends into 2017 and provides cash flow stability. Our current operations span 12 countries on five continents, providing services to approximately 17 customers. We believe that because dayrates and demand in different geographic regions and water depths may change independently of each other, our operational and geographic diversity provide greater opportunity, stability and downside protection.

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Commitment to safety and quality. We believe that customers recognize our commitment to safety and that our performance history and reputation for safe operations provide us with a competitive advantage. For the year ended December 31, 2013, the total recordable incident rate, or TRIR, for our rigs was 0.41 as compared to the International Association of Drilling Contractors, or IADC, average of 0.81. For the year ended December 31, 2012, the TRIR for our rigs was 0.50 as compared to the IADC average of 0.61. We believe that safety and operational excellence promote stronger relationships with multiple important stakeholders, including our employees, our customers and the local communities in which we operate, and reduce both downtime and costs.

Our Business Strategies

Our principal business objective is to increase shareholder value. We expect to achieve this objective through the following strategies:

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Focus on standard specification drilling operations. We focus entirely on standard specification drilling operations in shallow water, midwater and deepwater up to 7,200 feet. Based on operating revenues, we are the leader among the self-identified pure-play providers of standard specification offshore drilling rigs. We believe that our dedicated focus enables us to secure attractive customer contracts for our fleet through targeted marketing efforts and conduct our operations in an efficient and cost-effective manner.

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Maintain and invest in our current fleet of standard specification drilling rigs. We currently have a large, well-maintained and diversified fleet of standard specification drilling rigs. We intend to continue to invest capital to maintain, refurbish and strategically upgrade our assets. By investing in our fleet, we believe that we can prolong our rigs’ lives, reduce operational downtime and generate better returns for our shareholders.

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Capitalize on increased exploration and development activity. We believe the market outlook for offshore drilling remains favorable as worldwide E&P spending has increased since the beginning of 2011. We intend to continue identifying core basins and expansion areas for which our rigs’ capabilities are best suited in order to strategically position our fleet to most effectively capitalize on increasing demand for contract drilling services.

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Leverage strategic relationships with high-quality, long-term customers. We are committed to maintaining and leveraging the geographic diversity of our operations and the quality and longevity of our customer relationships. Our current operations span 12 countries on five continents, and we provide services to approximately 17 customers. We believe that our geographic diversity and strong customer relationships will reduce our exposure to market volatility and position us well to identify, react quickly to and benefit from positive market dynamics.

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Pursue strategic growth opportunities. We plan to consider opportunistic, value-adding acquisitions of rigs, especially rigs with contracted backlog, that add to our fleet’s average capability, customer base and geographic diversification. The offshore drilling industry is a large and highly fragmented industry. Given our large operating and geographic footprint and strong balance sheet, we believe we are well positioned to take advantage of acquisition opportunities around the world.

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Remain financially disciplined and return capital to shareholders. We intend to maintain a responsible capital structure and appropriate levels of liquidity. We also intend to implement a dividend policy in order to return capital to our shareholders as described in “Dividend Policy.” We intend to make investment decisions, including refurbishments, maintenance, upgrades and acquisitions, in a disciplined and diligent manner, carefully evaluating these investments based on their ability to maintain or improve our competitive position and strengthen our financial profile while returning capital to our shareholders.

Formation of Our Company and Our Relationship with Noble

We are an indirect, wholly-owned subsidiary of Noble. Noble is a leading offshore drilling contractor for the oil and gas industry. We were formed as a limited company incorporated under the laws of England and Wales, which we refer to as “U.K. law,” in December 2013. In connection with the spin-off, we and Noble expect to engage in a series of transactions through which we will acquire from Noble our standard specification drilling business. Our standard specification drilling business will include all of Noble’s standard specification drilling business except for three rigs to be retained by Noble. We collectively refer to these transactions as summarized below throughout this information statement as the “Transactions”:

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Noble expects to transfer the standard specification drilling business to us in exchange for our shares and intercompany indebtedness in an aggregate principal amount of $ .

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We expect to incur approximately $ of indebtedness under the Credit Facilities and the Debt Securities from unaffiliated third-parties and lenders.

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We expect to (i) use $ of the gross proceeds from such third-party debt financings to repay the intercompany indebtedness described above and (ii) retain approximately $ of the gross proceeds of third-party debt financings for general corporate purposes.

Prior to the completion of the spin-off, we will enter into a master separation agreement and other arrangements with Noble, including, among others, an employee matters agreement, a tax sharing agreement, transition services agreements relating to services provided to each other on an interim basis and a transition services agreement relating to Noble’s operations offshore Brazil. The agreements between us and Noble will govern our various interim and ongoing relationships. The master separation agreement will provide for, among other things, our responsibility for liabilities relating to our business and the responsibility of Noble for liabilities related to its, and in certain limited cases, our, business. The master separation agreement will also contain indemnification obligations and ongoing commitments by us and Noble. The employee matters agreement will allocate liabilities and responsibilities between us and Noble relating to employment, compensation and benefits and related employment matters. The tax sharing agreement will provide for the allocation of taxes and tax benefits between us and Noble and other matters relating to taxes. Under the transition services agreements, Noble will continue to provide various interim support services to us, and we will provide various interim support services to Noble. The terms of our separation from Noble, the related agreements and other transactions with Noble were determined by Noble, and thus may be less favorable to us than the terms we could have obtained from an unaffiliated third party. Please read “Certain Relationships and Related Party Transactions” for a description of these agreements.

Risk Factors

Our business is subject to numerous risks, as discussed more fully in the section entitled “Risk Factors.” In particular:

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Our business depends on the level of activity in the oil and gas industry. Adverse developments affecting the industry, including a decline in oil or gas prices, reduced demand for oil and gas products and increased regulation of drilling and production, could have a material adverse effect on our business, financial condition and results of operations.

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The contract drilling industry is a highly competitive and cyclical business. If we are unable to compete successfully, our profitability may be reduced.

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An over-supply of jackup rigs may lead to a reduction in dayrates and demand for our rigs and therefore may materially impact our profitability.

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Our standard specification rigs are at a relative disadvantage to higher specification rigs.

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The majority of our drilling rigs are more than 30 years old and may require significant amounts of capital for upgrades and refurbishment.

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Our business involves numerous operating hazards.

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Our inability to renew or replace expiring contracts or the loss of a significant customer or contract could have a material adverse effect on our financial results.

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We are exposed to risks relating to operations in international locations.

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Changes in, compliance with, or our failure to comply with certain laws and regulations may negatively impact our operations and could have a material adverse effect on our results of operations.

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We may be unable to achieve some or all of the benefits that we expect to achieve from our separation from Noble.

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Our historical combined and unaudited pro forma combined financial information are not necessarily indicative of our future financial condition, future results of operations or future cash flows nor do they reflect what our financial condition, results of operations or cash flows would have been as an independent public company during the periods presented.

Corporate Information

Our principal executive offices are located at 3151 Briarpark Drive, Suite 700, Houston TX 77042. Our website, which is currently under construction, is located at www.paragonoffshore.com. The content of our website is not part of this Information Statement.

Summary of the Spin-Off

The following is a brief summary of the terms of the spin-off. Please read “The Spin-Off” for a more detailed description of the matters described below.

Distributing company

Noble, which is the indirect parent company of Paragon Offshore. After the spin-off, Noble will not retain any Paragon Offshore ordinary shares.

Distributed company

Paragon Offshore, which is currently an indirect, wholly-owned subsidiary of Noble. After the spin-off, Paragon Offshore will be an independent, publicly traded company.

Distribution ratio

Each registered holder of ordinary shares of Noble will receive one Paragon Offshore ordinary share for every ordinary shares of Noble held on the record date. Approximately million ordinary shares of Paragon Offshore will be distributed in the spin-off, based upon the number of Noble ordinary shares outstanding on , 2014. Paragon Offshore ordinary shares to be distributed by Noble will constitute all of our issued and outstanding ordinary shares. For more information on the shares being distributed in the spin-off, see “Description of Share Capital.”

Fractional shares

The transfer agent identified below will automatically aggregate fractional ordinary shares into whole ordinary shares of Paragon Offshore and sell them on behalf of shareholders in the open market at prevailing market prices and distribute the proceeds pro rata to each Noble shareholder who otherwise would have been entitled to receive a fractional share in the spin-off. You will not be entitled to any interest on the amount of payment made to you in lieu of a fractional share. See “The Spin-Off—Treatment of Fractional Shares.”

Distribution procedures

On or about the Distribution Date, the distribution agent identified below will distribute Paragon Offshore ordinary shares by crediting those shares to book-entry accounts established by the transfer agent for persons who were registered shareholders of Noble as of 5:00 p.m., New York City time, on the record date. Paragon Offshore ordinary shares will be issued only in book-entry form. No paper share certificates will be issued. You will not be required to make any payment or surrender or exchange your Noble ordinary shares or take any other action to receive your Paragon Offshore ordinary shares. However, as discussed below, if you sell Noble ordinary shares in the “regular way” market between the record date and the Distribution Date, you will be selling your right to receive the associated Paragon Offshore ordinary shares in the spin-off. Registered shareholders will receive additional information from the transfer agent shortly after the Distribution Date. Beneficial shareholders will receive information from their brokerage firms.

Distribution agent, transfer agent and registrar for Paragon Offshore ordinary shares

Computershare Trust Company, N.A.

Record date

5:00 p.m., New York City time, on , 2014.

Distribution date

, 2014.

Trading Noble ordinary shares prior to or on the Distribution Date

It is anticipated that, beginning shortly before the record date, Noble’s shares will trade in two markets on the New York Stock Exchange, a “regular way” market and an “ex-distribution” market. Investors will be able to purchase Noble ordinary shares without the right to receive Paragon Offshore ordinary shares in the “ex-distribution” market for Noble ordinary shares. Any holder of ordinary shares of Noble who sells Noble ordinary shares in the “regular way” market on or before the Distribution Date will also be selling the right to receive Paragon Offshore ordinary shares in the spin-off. You are encouraged to consult with your broker or financial advisor regarding the specific implications of selling Noble ordinary shares prior to or on the Distribution Date.

Assets and liabilities of the distributed company

Prior to completion of the spin-off, we and Noble will enter into a master separation agreement that contains the key provisions relating to the separation of our business from Noble and the distribution of Paragon Offshore ordinary shares. The master separation agreement identifies the assets to be transferred, liabilities to be assumed and contracts to be assigned either to us by Noble or by us to Noble in the spin-off and describes when and how these transfers, assumptions and assignments will occur.

Relationship with Noble after the spin-off

Before the Distribution Date, we and Noble will enter into agreements to define various continuing relationships between Noble and us in various contexts. In particular, we will enter into a master separation agreement which governs the Distribution and the transfer to us of assets and assumption by us of liabilities relating to our business and transition services agreements under which we and Noble will provide each other certain transition services on an interim basis. We and Noble will also enter into a tax sharing agreement providing for (i) the sharing of taxes incurred before, after and as a result of the Distribution, (ii) various indemnification rights with respect to tax matters and (iii) restrictions to preserve the tax treatment of the spin-off.

Indemnities

Under the terms of the tax sharing agreement we will enter into in connection with the spin-off, we generally will be required to indemnify Noble for all taxes attributable to our business, whether accruing before, on or after the date of the spin-off and for any taxes arising from the spin-off or certain related transactions that are imposed on us, Noble or its other subsidiaries, to the extent such taxes result from certain actions or failures to act by us that occur after the effective date of the tax sharing agreement. Please read “The

Spin-Off—Material U.S. Federal Income Tax Consequences of the Spin-Off.” Please see also “Certain Relationships and Related Party Transactions—Tax Sharing Agreement.” Under the master separation agreement entered into in connection with the spin-off, we will indemnify Noble and its remaining subsidiaries against claims and liabilities relating to the past operation of our business and Noble will indemnify us against claims and liabilities relating to the past operation of their business.

U.S. federal income tax consequences

Noble obtained private letter rulings from the IRS and expects to obtain an opinion of counsel (which opinion will rely, in part, on the continued validity of the private letter rulings), in each case, substantially to the effect that, for U.S. federal income tax purposes, the spin-off and certain related transactions will qualify under Sections 355 and 368 of the Code. Assuming the spin-off and such related transactions so qualify, for U.S. federal income tax purposes, you generally will recognize no gain or loss or include any amount in taxable income (other than with respect to cash received in lieu of fractional shares) as a result of the spin-off. In addition, we and Noble generally will not recognize gain or loss on the spin-off, other than with respect to any intercompany items or excess loss accounts required to be taken into account under U.S. Treasury regulations relating to U.S. consolidated returns. The material U.S. federal income tax consequences of the spin-off are described in more detail under “The Spin-Off—Material U.S. Federal Income Tax Consequences of the Spin-Off.”

Conditions to the spin-off

We expect that the spin-off will be effective on , 2014, provided that the conditions set forth under the caption “The Spin-Off—Spin-Off Conditions and Termination,” have been satisfied in Noble’s sole and absolute discretion. However, even if all of the conditions have been satisfied, Noble may amend, modify or abandon any and all terms of the spin-off and the related transactions at any time prior to the Distribution Date.

Reasons for the spin-off

Noble’s board and management believe the benefits of the spin-off will include:

•

allow each company to have a more focused business and operational strategy;

•

enhance each company’s growth potential and the overall value of its assets;

•

provide each company with greater ability to make business and operational decisions in the best interests of its particular business and to allocate capital and corporate resources with a focus on achieving its strategic priorities;

•

better utilize the professionalism and skills of Noble’s team (including those who will become part of the Paragon Offshore

team) and culture to deliver excellent service, safety and operational integrity to customers of Noble and Paragon Offshore;

•

improve each company’s ability to attract and retain individuals with the appropriate skill sets as well as to better align compensation and incentives with the performance of these different businesses; and

•

allow the financial markets and investors to evaluate each company more effectively.]

For more information, please read “The Spin-Off—Reasons for the Spin-Off.”

Currently there is no public market for Paragon Offshore ordinary shares. We intend to apply to list Paragon Offshore ordinary shares on the New York Stock Exchange, or the NYSE, under the symbol “PGN.” We anticipate that limited trading in Paragon Offshore ordinary shares will begin on a “when-issued” basis on or shortly after the record date and will continue up to and including through the Distribution Date and that “regular-way” trading in Paragon Offshore ordinary shares will begin on the first trading day following the Distribution Date. “When-issued” trading refers to a transaction made conditionally because the security has been authorized but not yet issued. On the first trading day following the distribution of Paragon Offshore ordinary shares in the spin-off, “when-issued” trading in respect of Paragon Offshore ordinary shares will end and “regular way” trading will begin. “Regular way” trading refers to trading after a security has been issued and typically involves a transaction that settles on the third full business day following the date of the transaction. We cannot predict the trading prices or volume of Paragon Offshore ordinary shares following the spin-off. In addition, Noble ordinary shares will remain outstanding and will continue to trade on the NYSE.

Dividend policy

We expect to pay a regular quarterly cash dividend on Paragon Offshore ordinary shares. Initially, we expect that the amount of this dividend will be between approximately $20 million and $22.5 million in the aggregate per quarter, or between approximately $80 million and $90 million in the aggregate on an annualized basis. Under U.K. law, we will generally only be able to declare dividends out of distributable profits. In connection with the spin-off, we expect to create at least $400 million of distributable profits, which would be sufficient to allow us to pay dividends in the amounts described above for at least 16 quarters following the spin-off. We expect the first such quarterly dividend to be declared and paid with respect to the quarter of 2014. However, the timing, declaration, amount and payment of these dividends falls within the discretion of our board of directors, and we expect the agreements governing certain of our indebtedness to restrict the amount of dividends we

SUMMARY HISTORICAL AND PRO FORMA FINANCIAL DATA

The following table shows summary historical and pro forma financial data of Noble’s standard specification drilling business, which is our Predecessor for accounting purposes, as of the dates and for the periods indicated. The summary historical statement of operations data for the years ended December 31, 2013, 2012 and 2011 and the balance sheet data as of December 31, 2013 and 2012 have been derived from the audited combined financial statements of our Predecessor included elsewhere in this information statement. The summary balance sheet data as of December 31, 2011 have been derived from the audited combined financial statements of our Predecessor not included elsewhere in this information statement. The summary historical statement of operations data for the three months ended March 31, 2014 and 2013 and the balance sheet data as of March 31, 2014 were derived from the unaudited combined financial statements of our Predecessor included elsewhere in this information statement, which include all adjustments, consisting of normal recurring adjustments, which management considers necessary for a fair presentation of our Predecessor’s financial position and the results of operations for such periods. Results for the interim periods may not necessarily be indicative of results for the full year.

Our Predecessor’s historical combined financial statements include expenses of Noble that were allocated to us for certain administrative and operational support functions which were performed by Noble and certain of its subsidiaries. These expenses were allocated in our Predecessor’s historical results of operations in a manner consistent with Noble’s internal reporting for evaluation purposes. We consider the expense-allocation methodology and results to be reasonable for all periods presented. However, these allocations may not necessarily be indicative of the actual expenses we would have incurred as an independent publicly traded company during the periods prior to the spin-off nor are they representative of the costs which we will incur in the future.

The historical financial data included in this information statement may not be indicative of our future performance and do not necessarily reflect what our financial position and results of operations would have been had we operated as a standalone public company during the periods presented, including changes that will occur in our operations and capital structure as a result of the Transactions, including the spin-off. The historical financial data include three standard specification drilling rigs to be retained by Noble as well as one jackup and two cold stacked submersibles that were sold by Noble in July 2013 and January 2014, respectively.

The summary unaudited pro forma combined financial data of Paragon Offshore have been derived from the application of pro forma adjustments to our Predecessor’s historical combined financial statements included elsewhere in this information statement. The summary unaudited pro forma combined statements of operations give effect to the Transactions as if they had occurred on January 1, 2013. The summary unaudited pro forma combined balance sheet gives effect to the Transactions as if they had occurred on March 31, 2014. Please read “Unaudited Pro Forma Combined Financial Statements” for additional information. The pro forma adjustments are based upon available information and certain assumptions which we believe to be reasonable. The summary unaudited pro forma combined financial information does not purport to represent what our results of operations or financial position would have been if we had operated as a public company during the periods presented and may not be indicative of our future performance. The summary unaudited combined pro forma financial data are presented for informational purposes only.

The following tables should be read together with, and are qualified in their entirety by reference to, the historical and unaudited pro forma combined financial statements and the accompanying notes included elsewhere in this information statement. Among other things, the historical combined financial statements include more detailed information regarding the basis of presentation for the information in the following table. The tables should also be read together with the sections entitled “Unaudited Pro Forma Combined Financial Statements,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Certain Relationships and Related Party Transactions” included elsewhere in this information statement.


	Predecessor Historical															Paragon Offshore Pro Forma
	Year Ended December 31,									Three Months Ended March 31,						Three Months Ended March 31,			Year Ended December 31,
	2013			2012			2011			2014			2013			2014			2013
										(unaudited)						(unaudited)
	(In thousands, except for dayrates and utilization)
Statement of Income Data:
Operating revenues	$	1,893,002		$	1,541,857		$	1,370,557		$	514,590		$	454,070		$	455,982		$	1,696,149
Operating income		453,745			176,712			136,947			147,461			102,601			120,289			351,577
Net income per share		N/A			N/A			N/A			N/A			N/A
Basic		N/A			N/A			N/A			N/A			N/A
Diluted		N/A			N/A			N/A			N/A			N/A

Weighted average shares outstanding		N/A			N/A			N/A			N/A			N/A
Basic		N/A			N/A			N/A			N/A			N/A
Diluted		N/A			N/A			N/A			N/A			N/A

Balance Sheet Data (at end of period):
Cash and cash equivalents (1)	$	36,581		$	70,538		$	75,767		$	32,225			N/A
Property and equipment, net		3,459,684			3,551,813			3,373,817			3,404,782			N/A
Total assets		3,982,799			4,118,072			3,866,756			3,930,922			N/A
Long-term debt (2)		1,561,141			339,809			975,000			1,983,543			N/A
Total debt (2) (3)		1,561,141			339,809			975,000			1,983,543			N/A
Equity		2,005,333			3,365,232			2,441,823			1,583,530			N/A
Cash Flows Data:
Cash flows from operating activities	$	822,475		$	405,484		$	466,100		$	199,623		$	49,011			N/A			N/A
Cash flows from investing activities		(317,726	)		(540,867	)		(493,255	)		(55,461	)		(97,333	)		N/A			N/A
Cash flows from financing activities		(538,706	)		130,154			26,030			(148,518	)		14,048			N/A			N/A
Other Data (4):
Working capital (5)	$	217,450		$	253,816		$	123,004		$	272,113			N/A			N/A			N/A
Average dayrate
Jackups	$	102,974		$	88,120		$	79,257		$	112,340		$	97,730		$	111,898		$	103,689
Floaters		261,827			236,767			233,052			299,234			243,754			280,015			248,822
Average utilization (6)
Jackups		90	%		81	%		77	%		83	%		92	%		83	%		90	%
Floaters		66	%		62	%		61	%		78	%		68	%		75	%		62	%
Total capital expenditures (7)	$	366,361		$	532,404		$	518,455		$	42,524		$	101,329		$	41,305		$	358,794

(1)	Consists of cash and cash equivalents as reported on our combined balance sheet.

(2)

Predecessor Historical Long-term debt and Total debt represents outstanding indebtedness under Noble’s commercial paper program, which is expected to be repaid with the distribution from Paragon Offshore to Noble in connection with the spin-off. Paragon Offshore Pro Forma Long-term debt and Total debt are expected to be in the range of $1.6 billion and $1.75 billion. More information about Paragon Offshore Pro Forma indebtedness will be included in subsequent filings of this Information Statement.

(3)	Consists of long-term debt and current portion of long-term debt.

(4)

Other Data for our Predecessor includes results from two standard specification jackups and one standard specification floater to be retained by Noble and one jackup sold by Noble in July 2013 and two submersibles sold by Noble in January 2014. Our pro forma Other Data, excluding these rigs, was as follows:


	Paragon Offshore Pro Forma
	Year Ended December 31,									Three Months Ended March 31,
	2013			2012			2011			2014			2013
Average dayrate
Jackups	$	103,689		$	88,941		$	79,518		$	111,898		$	98,424
Floaters		248,822			228,629			263,792			280,015			239,541
Average utilization
Jackups		90	%		79	%		77	%		83	%		91	%
Floaters		62	%		57	%		56	%		75	%		64	%
Total capital expenditures (in thousands) (6)	$	358,794		$	522,300		$	493,107		$	41,305		$	100,739

(5)	The difference between our Predecessor’s historical working capital and our pro forma working capital is not meaningful. We will have approximately $ of working capital, including cash and cash equivalents, as of June 30, 2014.

(6)	We define utilization for a specific period as the total number of days our rigs are operating under contract, divided by the product of the total number of our rigs, including cold stacked rigs, and the number of calendar days in such period.

(7)	Capital expenditures for 2011-2013 include approximately $0.7 billion for floater-specific major upgrades that we do not expect to incur again for those rigs.

You should carefully consider each of the following risks and all of the other information contained in this information statement. Some of these risks relate principally to our spin-off from Noble, while others relate principally to our business and the industry in which we operate or to the securities markets generally and ownership of Paragon Offshore ordinary shares. Our business, financial condition and results of operations could be materially adversely affected by any of these risks, and, as a result, the trading price of Paragon Offshore ordinary shares could materially decline.

Demand for drilling services depends on a variety of economic and political factors and the level of activity in offshore oil and gas exploration and development and production markets worldwide. Commodity prices, and market expectations of potential changes in these prices, may significantly affect this level of activity, as well as dayrates for our services. However, higher current prices do not necessarily translate into increased drilling activity because our clients’ expectations of future commodity prices typically drive demand for our rigs. Oil and gas prices and the level of activity in offshore oil and gas exploration and development are volatile and are affected by numerous factors beyond our control, including:

Adverse developments affecting the industry as a result of one or more of these factors, including a decline in oil or gas prices, a global recession, reduced demand for oil and gas products and increased regulation of drilling and production, particularly if several developments were to occur in a short period of time as in 2008 and 2009, could have a material adverse effect on our business, financial condition and results of operations.

The contract drilling industry is a highly competitive and cyclical business. If we are unable to compete successfully, our profitability may be reduced.

The offshore contract drilling industry is a highly competitive and cyclical business characterized by high capital and operating costs and evolving operational capability of newer rigs. Drilling contracts are traditionally awarded on a competitive bid basis. Intense price competition, rig availability, location and suitability, experience of the workforce, efficiency, safety performance record, technical capability and condition of equipment, operating integrity, reputation, industry standing and client relations are all factors in determining which contractor is awarded a job. Our future success and profitability will partly depend upon our ability to keep pace with our customers’ demands with respect to these factors. Other drilling companies, including those with both high specification and standard specification rigs, may have greater financial, technical and personnel resources that allow them to upgrade equipment and implement new technical capabilities before we can. If current competitors or new market entrants implement new technical capabilities, services or standards that are more attractive to our customers, it could have a material adverse effect on our operations.

In addition to intense competition, our industry is highly cyclical. It has been especially cyclical with respect to the jackup market, where market conditions are subject to rapid change. There have been periods of high demand, short rig supply and high dayrates, followed by periods of lower demand, excess rig supply and low dayrates. Periods of low demand or excess rig supply intensify the competition in the industry and may result in some of our rigs being idle or earning substantially lower dayrates for long periods of time. Additionally, drilling contracts for our jackups generally have shorter terms than contracts for our floaters, meaning that most of our fleet does not have the benefit of the price protection that longer-term contracts provide. The volatility of the industry, coupled with the short-term nature of many of our contracts could have a material adverse effect on our business, financial condition and results of operations.

An over-supply of jackup rigs may lead to a reduction in dayrates and demand for our rigs and therefore may materially impact our profitability.

During the recent period of high utilization and high dayrates, industry participants have increased the supply of drilling rigs by building new drilling rigs, including some drilling rigs that have not yet entered service. Historically, this has often resulted in an oversupply of drilling rigs, which has contributed to a decline in utilization and dayrates, sometimes for extended periods of time. New fixtures for both standard specification and high specification floaters have recently come under pressure as a result of a recent reduction in customer spending and the anticipated delivery of more than 90 new floating units.

The increase in supply created by the number and types of rigs being built, as well as changes in our competitors’ drilling rig fleets, could intensify price competition and require higher capital investment to keep our rigs competitive. According to RigLogix, as of April 19, 2014, the total non-U.S. jackup fleet comprises 471 units (16 of which are cold stacked). An additional 121 jackup drilling rigs are under construction or on order, which could bring the total non-U.S. jackup fleet to 592 units (assuming no further newbuilds are ordered and delivered and there is no attrition of the current fleet). To the extent that the drilling rigs currently under construction or on order have not been contracted for future work, there may be increased price competition as such vessels become operational, which could lead to a reduction in dayrates. Lower utilization and dayrates would adversely affect our revenues and profitability. Prolonged periods of low utilization or low dayrates could also result in the recognition of impairment charges on our drilling rigs if future cash flow estimates, based upon information available to management at the time, indicate that the carrying value of these drilling rigs may not be recoverable.

Our standard specification rigs are at a relative disadvantage to higher specification rigs.

Our standard specification rigs do not have certain capabilities and technology that can be found on higher specification rigs and that may increase the operating parameters and efficiency of higher specification drilling rigs. If the demand for offshore drilling rigs were to decrease for any reason, it is possible that higher specification rigs may begin to compete with standard specification rigs for the same contracts. In that case, higher specification rigs would have an advantage over standard specification rigs in securing those contracts and demand for and utilization of standard specification rigs may decrease. Such a decrease in demand for and utilization of standard specification rigs could have a material adverse effect on our business, financial condition and results of operations.

Many of our competitors have fleets that include high specification rigs, making these competitors more operationally diverse. Some of our customers have expressed a preference for newer rigs and, in some areas, higher specification rigs may be more likely to obtain contracts than standard specification rigs such as ours. Our rigs are further constrained by the water depths in which they are capable of operating. In recent years, an increasing amount of E&P expenditures has been concentrated in deepwater drilling programs and deeper formations, requiring higher specification jackup rigs, semisubmersibles or drillships. This trend could result in a decline in demand for standard specification rigs like ours, which could have a material adverse effect on our business, financial condition and results of operations.

The majority of our drilling rigs are more than 30 years old and may require significant amounts of capital for upgrades and refurbishment.

The majority of our drilling rigs were initially put into service during the years 1976 to 1982 and may require significant capital investment to continue operating in the future, particularly as compared to their newer high specification counterparts. From time to time, some of our customers, including Pemex, express a preference for newer rigs. We may be required to spend significant capital on upgrades and refurbishment to maintain the competitiveness of our fleet in the offshore drilling market. Our rigs typically do not generate revenue while they are undergoing refurbishment and upgrades. Rig upgrade or refurbishment projects for older assets such as ours could increase our indebtedness or reduce cash available for other opportunities. Further, such projects may require proportionally greater capital investments as a percentage of total rig value, which may make such projects difficult to finance on acceptable terms. To the extent we are unable to fund such projects, we will have fewer rigs available for service or our rigs may not be attractive to potential or current customers. Such demands on our capital or reductions in demand for our fleet could have a material adverse effect on our business, financial condition and results of operations.

Our operations are subject to many hazards inherent in the drilling business, including:

These hazards could cause personal injury or loss of life, suspend drilling operations, result in regulatory investigation or penalties, seriously damage or destroy property and equipment, result in claims by employees, customers or third parties, cause environmental damage and cause substantial damage to oil and gas producing formations or facilities. Operations also may be suspended because of machinery breakdowns, abnormal drilling conditions, and failure of subcontractors to perform or supply goods or services or personnel shortages. Accordingly, the occurrence of any of the hazards we face could have a material adverse effect on our business, financial condition and results of operations.

Our inability to renew or replace expiring contracts or the loss of a significant customer or contract could have a material adverse effect on our financial results.

Our ability to renew our customer contracts or obtain new contracts and the terms of any such contracts will depend on many factors beyond our control, including market conditions, the global economy and our customers’ financial condition and drilling programs. Moreover, any concentration of customers increases the risks associated with any possible termination or nonperformance of drilling contracts. For the three months ended March 31, 2014 and year ended December 31, 2013, our five largest customers in the aggregate accounted for approximately 60% and 59%, respectively, of our pro forma consolidated operating revenues. We expect Pemex and Petrobras, which accounted for approximately 17% and 25% of our pro forma consolidated operating revenues for the three months ended March 31, 2014, respectively, and 21% and 18% of our pro forma consolidated operating revenues for the year ended December 31, 2013, respectively, to continue to be significant customers in 2014. Our pro forma contract drilling backlog for 2014 as of March 31, 2014 includes $340 million, or approximately 27%, and $223 million, or approximately 18%, attributable to contracts with Petrobras and Pemex, respectively, for operations offshore Brazil and Mexico. Our floaters working for Petrobras are under contracts that expire beginning in 2015. Petrobras has announced a program to construct 29 newbuild floaters, which may reduce or eliminate its need for our rigs. These new drilling units, if built, would compete with, and could displace, our floaters completing contracts and could materially adversely affect our utilization rates, particularly in Brazil. Further, some national oil companies have considered regulations limiting the age of rigs in operation. Such reforms, if adopted, could significantly increase our costs or render some of our rigs ineligible for contracts with such companies.

Our customers may generally terminate our term drilling contracts if a drilling rig is destroyed or lost or if we have to suspend drilling operations for a specified period of time as a result of a breakdown of major equipment or, in some cases, due to other events beyond the control of either party. In the case of nonperformance and under certain other conditions, our drilling contracts generally allow our customers to

terminate without any payment to us. The terms of some of our drilling contracts permit the customer to terminate the contract after specified notice periods by tendering contractually specified termination amounts. These termination payments may not fully compensate us for the loss of a contract. Our drilling contracts with our largest customer, Pemex, allow early cancellation with 30 days or less notice to us without any early termination payment. Our second largest customer, Petrobras, has the right to terminate its contracts in the event of downtime that exceeds certain thresholds. The early termination of a contract may result in a rig being idle for an extended period of time and a reduction in our contract backlog and associated revenue, which could have a material adverse effect on our business, financial condition and results of operations.

In addition, during periods of depressed market conditions, we may be subject to an increased risk of our customers seeking to repudiate their contracts. Our customers’ ability to perform their obligations under drilling contracts with us may also be adversely affected by restricted credit markets and economic downturns. If our customers cancel or are unable to renew some of their contracts and we are unable to secure new contracts on a timely basis and on substantially similar terms, if contracts are disputed or suspended for an extended period of time or if a number of our contracts are renegotiated, it could have a material adverse effect on our business, financial condition and results of operations.

We are exposed to risks relating to operations in international locations.

We operate in various regions throughout the world that may expose us to political and other uncertainties, including risks of:

Further, we operate in certain less-developed countries with legal systems that are not as mature or predictable as those in more developed countries, which can lead to greater uncertainty in legal matters and proceedings. Examples of challenges of operating in these countries include:

Our ability to mobilize our drilling rigs between locations and the time and costs of such mobilization may be material to our business.

Our ability to mobilize our drilling rigs to more desirable locations may be impacted by governmental regulation and customs practices, the significant costs of moving a drilling rig, weather, political instability, civil unrest, military actions and the technical capability of the drilling rig to relocate and operate in various environments. In addition, as our rigs are mobilized from one geographic location to another, labor and other operating and maintenance costs can vary significantly. If we relocate a rig to another geographic location without a customer contract, we will incur costs that will not be reimbursable by future customers, and even if we relocate a rig with a customer contract, we may not be fully compensated during the mobilization period. These impacts of rig mobilization could have a material adverse effect on our business, results of operations and financial condition.

Operating and maintenance costs of our operating rigs and costs relating to idle rigs may be significant and may not correspond to revenue earned.

Our operating expenses and maintenance costs depend on a variety of factors including crew costs, costs of provisions, equipment, insurance, maintenance and repairs, and shipyard costs, many of which are beyond our control. Our total operating costs are generally related to the number of drilling rigs in operation and the cost level in each country or region where such drilling rigs are located. Equipment maintenance costs fluctuate depending upon the type of activity that the drilling rig is performing and the age and condition of the equipment. Operating and maintenance costs will not necessarily fluctuate in proportion to changes in operating revenues. While operating revenues may fluctuate as a function of changes in dayrate, costs for operating a rig may not be proportional to the dayrate received and may vary based on a variety of factors, including the scope and length of required rig preparations and the duration of the contractual period over which such expenditures are amortized. Any investments in our rigs may not result in an increased dayrate for or income from such rigs. A disproportionate amount of operating and maintenance costs in comparison to dayrates could have a material adverse effect on our business, financial condition and results of operations.

During idle periods, to reduce our costs, we may decide to “warm stack” a rig, which means the rig is kept fully operational and ready for redeployment, and maintains most of its crew. As a result, our operating expenses during a warm stacking will not be substantially different than those we would incur if the rig remained active. We may also decide to cold stack the rig, which means the rig is neither operational nor ready for deployment, does not maintain a crew and is stored in a harbor, shipyard or a designated offshore area. However, reductions in costs following the decision to cold stack a rig may not be immediate, as a portion of the crew may be required to prepare the rig for such storage. Currently, three of our rigs and our FPSO are cold stacked. Our cold stacked rigs may require significant capital expenditures to return them to operation, making reactivation of such assets more financially demanding.

Any violation of anti-bribery or anti-corruption laws, including the Foreign Corrupt Practices Act, the United Kingdom Bribery Act, or similar laws and regulations could result in significant expenses, divert management attention, and otherwise have a negative impact on us.

We operate in countries known to have a reputation for corruption. We are subject to the risk that we, our affiliated entities or their respective officers, directors, employees and agents may take action determined to be in violation of such anti-corruption laws, including the U.S. Foreign Corrupt Practices Act of 1977, or FCPA, the United Kingdom Bribery Act 2010, or U.K. Bribery Act, and similar laws in other countries.

In 2007, Noble began, and voluntarily contacted the SEC and the U.S. Department of Justice, or DOJ, to advise them of, an internal investigation of the legality under the FCPA and local laws of certain reimbursement payments made by Noble’s Nigerian affiliate to our customs agents in Nigeria. In 2010, Noble finalized settlements of this matter and paid fines and penalties to the DOJ and the SEC. Any violation of the FCPA, the U.K. Bribery Act or other applicable anti-corruption laws could result in substantial fines, sanctions, civil or criminal penalties and curtailment of operations in certain jurisdictions and might adversely affect our business, results of operations or financial condition. Actual or alleged violations could also damage our reputation and ability to do business. Further, detecting, investigating, and resolving actual or alleged violations is expensive and can consume significant time and attention of our senior management.

Changes in, compliance with, or our failure to comply with the certain laws and regulations may negatively impact our operations and could have a material adverse effect on our results of operations.

Our operations are subject to various laws and regulations in countries in which we operate, including laws and regulations relating to:

Legal and regulatory proceedings relating to the energy industry, and the complex government regulations to which our business is subject, have at times adversely affected our business and may do so in the future. Governmental actions and initiatives by OPEC may continue to cause oil price volatility. In some areas of the world, this activity has adversely affected the amount of exploration and development work done by major oil companies, which may continue. In addition, some governments favor or effectively require the awarding of drilling contracts to local contractors, require use of a local agent or require foreign contractors to employ citizens of, or purchase supplies from, a particular jurisdiction. These practices may adversely affect our ability to compete and our results of operations.

Public and regulatory scrutiny of the energy industry has resulted in increased regulations being either proposed or implemented. In addition, existing regulations might be revised or reinterpreted, new laws, regulations and permitting requirements might be adopted or become applicable to us, our rigs, our customers, our vendors or our service providers, and future changes in laws and regulations could significantly increase our costs and could have a material adverse effect on our business, financial condition and results of operations. In addition, we may be required to post additional surety bonds to secure performance, tax, customs and other obligations relating to our rigs in jurisdictions where bonding requirements are already in effect and in other jurisdictions where we may operate in the future. These requirements would increase the cost of operating in these countries, which could materially adversely affect our business, financial condition and results of operations.

Adverse effects may continue as a result of the uncertainty of ongoing inquiries, investigations and court proceedings, or additional inquiries and proceedings by federal or state regulatory agencies or private plaintiffs. In addition, we cannot predict the outcome of any of these inquiries or whether these inquiries will lead to additional legal proceedings against us, civil or criminal fines or penalties, or other regulatory action, including legislation or increased permitting requirements. Legal proceedings or other matters against us, including environmental matters, suits, regulatory appeals, challenges to our permits by citizen groups and similar matters, might result in adverse decisions against us. The result of such adverse decisions, either individually or in the aggregate, could be material and may not be covered fully or at all by insurance.

Shipyard projects are subject to risks, including delays and cost overruns, which could have an adverse impact on our results of operations and financial condition.

We may make significant repairs, refurbishments and upgrades to our fleet from time to time, particularly given the age of our fleet. Some of these expenditures will be unplanned. In addition, we may decide to construct new rigs or acquire rigs under construction. These projects and other efforts of this type are subject to risks of cost overruns or delays inherent in any large construction project as a result of numerous factors, including the following:

The failure to complete a rig repair, refurbishment or upgrade on time, or at all, may result in loss of revenues, penalties, or delay, renegotiation or cancellation of a drilling contract or the recognition of an asset impairment. Additionally, capital expenditures for rig upgrade, refurbishment, repair and newbuild projects could materially exceed our planned capital expenditures. Moreover, our rigs undergoing upgrade, refurbishment and repair typically do not earn a dayrate during the period they are out of service. If we experience substantial delays and cost overruns in our shipyard projects, it could have a material adverse effect on our business, financial condition and results of operations.

We can provide no assurance that our current backlog of contract drilling revenue will be ultimately realized.

As of March 31, 2014, our pro forma contract backlog was over $2.6 billion for contracted future work extending, in some cases, until 2017, with approximately 47% expected to be earned in 2014. Generally, contract backlog only includes future revenues under firm commitments; however, from time to time, we may report anticipated commitments for which definitive agreements have not yet been, but are expected to be, executed. In addition, we may not receive some or all of the bonuses that we include in our backlog. We can provide no assurance that we will be able to perform under these contracts due to events beyond our control or that we will be able to ultimately execute a definitive agreement in cases where one does not currently exist. In addition, we

generally do not expect to recontract our floaters, which accounted for 48% of our backlog at March 31, 2014, until later in their contract terms. Due to the higher dayrates earned by our floaters, until these rigs are recontracted, our total backlog may decline, which may have a material adverse effect on our business and financial condition. Moreover, we can provide no assurance that our customers will be able to or willing to fulfill their contractual commitments to us. Our inability to perform under our contractual obligations or to execute definitive agreements or our customers’ inability or unwillingness to fulfill their contractual commitments to us may have a material adverse effect on our business, financial condition and results of operations.

If we are unable to make acquisitions on economically acceptable terms, or at all, our future growth will be limited, and any acquisitions we may make could have an adverse effect on our results of operations.

Part of our strategy to grow our business is dependent on our ability to make acquisitions that result in an increase in revenues and customer contracts. The consummation and timing of any future acquisitions will depend upon, among other things, the availability of attractive targets in the marketplace, our ability to negotiate acceptable purchase agreements and our ability to obtain financing on acceptable terms, and we can offer no assurance that we will be able to consummate any future acquisition.

Our debt agreements may restrict our ability to make acquisitions involving the payment of cash or the incurrence of indebtedness. If we are unable to make acquisitions, our future growth will be limited. Furthermore, even if we do consummate acquisitions that we believe will be accretive, they may in fact produce less revenue than expected as a result of incorrect assumptions in our evaluation of such acquisitions or unforeseen consequences or other external events beyond our control. If we consummate any future acquisitions, shareholders will not have the opportunity to evaluate the economic, financial and other relevant information that we will consider in evaluating any such acquisitions.

Operational interruptions or maintenance or repair work may cause our customers to suspend or reduce payment of dayrates until operation of the respective drilling rig is resumed, which may lead to loss of revenue or termination or renegotiation of the drilling contract.

If our drilling rigs are idle for reasons that are not related to the ability of the rig to operate, our customers are entitled to pay a waiting, or standby, rate lower than the full operational rate. In addition, if our drilling rigs are taken out of service for maintenance and repair for a period of time exceeding the scheduled maintenance periods set forth in our drilling contracts, we will not be entitled to payment of dayrates until the rig is able to work. Several factors could cause operational interruptions, including:

If the interruption of operations were to exceed a determined period due to an event of force majeure, our customers have the right to pay a rate that is significantly lower than the waiting rate for a period of time, and, thereafter, may terminate the drilling contracts related to the subject rig. Suspension of drilling contract payments, prolonged payment of reduced rates or termination of any drilling contract as a result of an interruption of operations as described herein could materially adversely affect our business, financial condition and results of operations, and our ability to make distributions to our shareholders.

Our debt instruments could limit our operations and our debt level may limit our flexibility to obtain financing and to pursue business opportunities.

At the completion of the spin-off, we expect to have total long-term indebtedness in the range of $1.6 billion and $1.75 billion. Following the spin-off, we will have the ability to incur additional debt, subject to limitations in our debt agreements. Certain of our debt agreements may contain covenants requiring us to maintain certain financial ratios. Any debt instruments that we enter into in the future may include, among other things, additional or more restrictive limitations that could adversely affect our ability to finance our future operations or capital needs or engage in, expand or pursue our business activities.

In addition, our degree of leverage could have important consequences to us, including the following:

Our ability to service our debt will depend on, among other things, our future financial and operating performance, which will be affected by prevailing economic conditions and financial, business, regulatory and other factors, some of which are beyond our control. If our operating results are not sufficient to service our current or future indebtedness, it may be necessary to take actions such as reducing dividends, reducing or delaying our planned capital expenditures or other business activities.

In addition, our failure to comply with certain covenants in certain of our debt agreements may result in an event of default in other of our debt agreements. An event of default may result in the acceleration of certain of our indebtedness and could have a material adverse effect on our available liquidity.

As a result of our cash flow requirements, we may be required to incur additional indebtedness, or delay or cancel discretionary capital expenditures.

Our currently anticipated cash flow needs, both in the short-term and long-term, may include the following:

In order to fund our capital expenditures, we may need funding beyond the amount available to us from cash generated by our operations, cash on hand and borrowings under our credit facilities. We may raise such additional capital in a number of ways, including accessing capital markets, obtaining additional lines of credit or disposing of assets. However, we can provide no assurance that any of these options will be available to us on terms acceptable to us or at all.

Our ability to obtain financing or access the capital markets may be limited by our financial condition at the time of any such financing and the covenants in our debt agreements, as well as by adverse market conditions resulting from, among other things, general economic conditions and uncertainties that are beyond our control. Worldwide instability in financial markets or another recession could reduce the availability of liquidity and credit to fund the continuation and expansion of industrial business operations worldwide. Even if we are successful in obtaining additional capital through debt financings, incurring additional indebtedness may significantly increase our interest expense and may reduce our ability to respond to changing business and economic conditions or to fund working capital needs, because we will require additional funds to service our outstanding indebtedness.

We may delay or cancel discretionary capital expenditures, even if previously announced, which could have certain adverse consequences including delaying repairs, refurbishments or equipment purchases that could make the affected rigs less competitive, adversely affect customer relationships and negatively impact our ability to contract such rigs.

A loss of a major tax dispute or a successful tax challenge to our operating structure, intercompany pricing policies or the taxable presence of our subsidiaries in certain countries could result in a higher tax rate on our worldwide earnings, which could result in a material adverse effect on our financial condition.

Income tax returns that we file will be subject to review and examination. We will not recognize the benefit of income tax positions we believe are more likely than not to be disallowed upon challenge by a tax authority. If any tax authority successfully challenges our operational structure, intercompany pricing policies or the taxable presence of our subsidiaries in certain countries, if the terms of certain income tax treaties are interpreted in a manner that is adverse to our structure, or if we lose a material tax dispute in any country, our effective tax rate on our worldwide earnings could increase substantially and result in a material adverse effect on our financial condition.

We may record losses or impairment charges related to rigs that we sell or idle rigs.

Prolonged periods of low utilization or low dayrates, the cold stacking of idle assets, the sale of assets below their then carrying value or the decline in market value of our assets may cause us to experience losses. These events could result in the recognition of an impairment charge, such as the impairment charge that we recorded on our FPSO at December 31, 2013 (see Note 5 to the Predecessor’s audited financial statements included elsewhere in this information statement), if future cash flow estimates, based upon information available to management at the time, indicate that the carrying value of these rigs may not be recoverable or if we sell assets at below their then carrying value.

We may have difficulty obtaining or maintaining insurance in the future and our insurance coverage and contractual indemnity rights may not protect us against all of the risks and hazards we face.

We do not procure insurance coverage for all of the potential risks and hazards we may face. Furthermore, no assurance can be given that we will be able to obtain insurance against all of the risks and hazards we face or that we will be able to obtain or maintain adequate insurance at rates and with deductibles or retention amounts that we consider commercially reasonable.

Our insurance carriers may interpret our insurance policies such that they do not cover losses for which we make claims. Our insurance policies may also have exclusions of coverage for some losses. Uninsured exposures may include expatriate activities prohibited by U.S. laws, radiation hazards, certain loss or damage to property onboard our rigs and losses relating to shore-based terrorist acts or strikes. Furthermore, the damage sustained to offshore oil and gas assets as a result of hurricanes in recent years has negatively impacted the energy insurance market, resulting in more restrictive and expensive coverage for U.S. named windstorm perils. If one or more future significant weather-related events occur in any geographic area in which we operate, we may experience increases in insurance costs, additional coverage restrictions or unavailability of certain insurance products.

Under our drilling contracts, liability with respect to personnel and property is customarily assigned on a “knock-for-knock” basis, which means that we and our customers assume liability for our respective personnel and property, irrespective of the fault or negligence of the party indemnified. Although our drilling contracts generally provide for indemnification from our customers for certain liabilities, including liabilities resulting from pollution or contamination originating below the surface of the water and damage or loss of reservoir. Enforcement of these contractual rights to indemnity may be limited by public policy and other considerations and, in any event, may not adequately cover our losses from such incidents. There can also be no assurance that those parties with contractual obligations to indemnify us will necessarily be in a financial position to do so.

Although we maintain insurance in the geographic areas in which we operate, pollution, reservoir damage and environmental risks generally are not fully insurable. Our insurance policies may not adequately cover our losses or may have exclusions of coverage for some losses. We do not have insurance coverage or rights to indemnity for all risks, including loss of hire insurance on most of the rigs in our fleet. Uninsured exposures may include expatriate activities prohibited by U.S. laws and regulations, radiation hazards, certain loss or damage to property onboard our rigs and losses relating to shore-based terrorist acts or strikes. If a significant accident or other event occurs and is not fully covered by insurance or contractual indemnity, it could adversely affect our business, financial condition or results of operations.

Government proposals in the U.K. would increase our effective tax rate and other possible changes in tax laws could adversely affect us and our shareholders.

We operate through various subsidiaries in numerous countries throughout the world. Consequently, we are subject to changes in tax laws, treaties or regulations or the interpretation or enforcement thereof in the U.K., the U.S. and other jurisdictions in which we or any of our subsidiaries operate or are incorporated. Changes in existing laws or the enactment or adoption of new tax laws or regulations may materially increase our cost of operating in certain countries and reduce our net income. For example, draft legislation recently published by the U.K. government could restrict deductions on certain related party transactions, such as those relating to the bareboat charter agreements used in connection with our U.K. continental shelf operations. If enacted, the proposed legislation is expected to become effective retroactively to April 1, 2014 and would result in an increase in the effective tax rate on our consolidated operations. Such an increase in tax expense would reduce our net income.

Tax laws, treaties and regulations are highly complex and subject to interpretation. Our income tax expense is based upon our interpretation of the tax laws, treaties and regulations in effect in various countries at the time that the expense was incurred. If any laws, treaties or regulations change or taxing authorities do not agree with our interpretation of such laws, treaties and regulations, this could have a material adverse effect on us, including the imposition of a higher effective tax rate on our worldwide earnings or a reclassification of the tax impact of our significant corporate restructuring transactions.

In addition, the manner in which our shareholders are taxed on distributions on, and dispositions of, our shares could be affected by changes in tax laws, treaties or regulations or the interpretation or enforcement thereof in the U.K., the U.S. or other jurisdictions in which our shareholders are resident. Any such changes could result in increased taxes for our shareholders and affect the trading price of our shares.

Our operations are subject to numerous laws and regulations relating to the protection of the environment and of human health and safety, and compliance with these laws and regulations could impose significant costs and liabilities that exceed our current expectations.

Substantial costs, liabilities, delays and other significant issues could arise from environmental, health and safety laws and regulations covering our operations, and we may incur substantial costs and liabilities in maintaining compliance with such laws and regulations. Our operations are subject to extensive international conventions and treaties, and national or federal, state and local laws and regulations, governing environmental protection, including with respect to the discharge of materials into the environment and the security of chemical and industrial facilities. These laws govern a wide range of environmental issues, including:

Various governmental authorities have the power to enforce compliance with these laws and regulations and the permits issued under them, oftentimes requiring difficult and costly actions. Failure to comply with these laws, regulations and permits, or the release of oil or other materials into the environment, may result in the assessment of administrative, civil and criminal penalties, the imposition of remedial obligations, the imposition of stricter conditions on or revocation of permits, the issuance of moratoria or injunctions limiting or preventing some or all of our operations, delays in granting permits and cancellation of leases, or could affect our relationship with certain consumers.

There is inherent risk of the incurrence of environmental costs and liabilities in our business, some of which may be material, due to the handling of our customers’ hydrocarbon products as they are gathered, transported, processed and stored, air emissions related to our operations, historical industry operations, and water and waste disposal practices. Joint, several or strict liability may be incurred without regard to fault under certain environmental laws and regulations for the remediation of contaminated areas and in connection with past, present or future spills or releases of natural gas, oil and wastes on, under, or from past, present or future facilities. Private parties may have the right to pursue legal actions to enforce compliance as well as to seek damages for non-compliance with environmental laws and regulations or for personal injury or property damage arising from our operations. In addition, increasingly strict laws, regulations and enforcement policies could materially increase our compliance costs and the cost of any remediation that may become necessary. Our insurance may not cover all environmental risks and costs or may not provide sufficient coverage if an environmental claim is made against us.

Our business may be adversely affected by increased costs due to stricter pollution control equipment requirements or liabilities resulting from non-compliance with required operating or other regulatory permits. Also, we might not be able to obtain or maintain from time to time all required environmental regulatory approvals for our operations. If there is a delay in obtaining any required environmental regulatory approvals, or if we fail to obtain and comply with them, the operation or construction of our facilities could be prevented or become subject to additional costs. In addition, the steps we could be required to take to bring certain facilities into regulatory compliance could be prohibitively expensive, and we might be required to shut down, divest or alter the operation of those facilities, which might cause us to incur losses.

We make assumptions and develop expectations about possible expenditures related to environmental conditions based on current laws and regulations and current interpretations of those laws and regulations. If the interpretation of laws or regulations, or the laws and regulations themselves, change, our assumptions may

change, and new capital costs may be incurred to comply with such changes. In addition, new environmental laws and regulations might adversely affect our operations, as well as waste management and air emissions. For instance, governmental agencies could impose additional safety requirements, which could affect our profitability. Further, new environmental laws and regulations might adversely affect our customers, which in turn could affect our profitability.

Finally, although some of our drilling rigs will be separately owned by our subsidiaries, under certain circumstances a parent company and all of the unit-owning affiliates in a group under common control engaged in a joint venture could be held liable for damages or debts owed by one of the affiliates, including liabilities for oil spills under environmental laws. Therefore, it is possible that we could be subject to liability upon a judgment against us or any one of our subsidiaries.

We are subject to risks associated with climate change and climate change regulation.

There is an ongoing debate that emissions of greenhouse gases, or GHGs, may be linked to climate change. Climate change and the costs that may be associated with its impacts and the regulation of GHGs have the potential to affect our business in many ways, including negatively impacting the costs we incur in providing our services, the demand for and consumption of our services (due to change in both costs and weather patterns), and the economic health of the regions in which we operate, all of which can create financial risks. In addition, legislative and regulatory responses related to GHGs and climate change create the potential for financial risk. There have been international efforts seeking legally binding reductions in emissions of GHGs. In addition, increased public awareness and concern may result in more state, regional or federal requirements to reduce or mitigate GHG emissions.

The passage or promulgation of any new climate change laws or regulations by the United Nations’ International Maritime Organization, or IMO, at the international level, or by national or regional legislatures in the jurisdictions in which we operate, including the European Union, could result in increased costs to (i) operate and maintain our facilities, (ii) install new emission controls on our facilities and (iii) administer and manage any GHG emissions program. If we are unable to recover or pass through a significant level of our costs related to complying with climate change regulatory requirements imposed on us, it could have a material adverse effect on our results of operations and financial condition. To the extent financial markets view climate change and GHG emissions as a financial risk, this could negatively impact our cost of and access to capital. Legislation or regulations that may be adopted to address climate change could also affect the markets for our services by making our services more or less desirable than services associated with competing sources of energy.

Finally, some scientists have concluded that increasing GHG concentrations in the atmosphere may produce climate changes that have significant physical effects, such as increased frequency and severity of hurricanes and other storms, which could have a material adverse effect on our business, financial condition and results of operations.

Failure to attract and retain skilled personnel or an increase in personnel costs could adversely affect our operations.

We require skilled personnel to operate and provide technical services and support for our drilling rigs. As the demand for drilling services and the size of the worldwide industry fleet increases, shortages of qualified personnel have occurred from time to time. These shortages could result in our loss of qualified personnel to competitors, impair our ability to attract and retain qualified personnel for our drilling rigs, impair the timeliness and quality of our work and create upward pressure on personnel costs, any of which could adversely affect our operations.

Any failure to comply with the complex laws and regulations governing international trade could adversely affect our operations.

The shipment of goods, services and technology across international borders subjects our business to extensive trade laws and regulations. Import activities are governed by unique customs laws and regulations in each of the countries of operation. Moreover, many countries, including the United States, control the export and re-export of certain goods, services and technology and impose related export recordkeeping and reporting obligations. Governments also may impose economic sanctions against certain countries, persons and other entities that may restrict or prohibit transactions involving such countries, persons and entities. U.S. sanctions, in particular, are targeted against certain countries that are heavily involved in the petroleum and petrochemical industries, which includes drilling activities.

The laws and regulations concerning import activity, export recordkeeping and reporting, export control and economic sanctions are complex and constantly changing. These laws and regulations may be enacted, amended, enforced or interpreted in a manner materially impacting our operations. Shipments can be delayed and denied export or entry for a variety of reasons, some of which are outside our control and some of which may result from failure to comply with existing legal and regulatory regimes. Shipping delays or denials could cause unscheduled operational downtime. Any failure to comply with applicable legal and regulatory trading obligations could also result in criminal and civil penalties and sanctions, such as fines, imprisonment, debarment from government contracts, seizure of shipments and loss of import and export privileges.

Currently, we do not, nor do we intend to, operate in countries that are subject to significant sanctions and embargoes imposed by the U.S. government or identified by the U.S. government as state sponsors of terrorism, such as Cuba, Iran, Sudan and Syria. The U.S. sanctions and embargo laws and regulations vary in their application, as they do not all apply to the same covered persons or proscribe the same activities, and such sanctions and embargo laws and regulations may be amended or strengthened over time. Although we believe that we will be in compliance with all applicable sanctions and embargo laws and regulations at the closing of the spin-off, and intend to maintain such compliance, there can be no assurance that we will be in compliance in the future, particularly as the scope of certain laws may be unclear and may be subject to changing interpretations. Any such violation could result in fines or other penalties and could result in some investors deciding, or being required, to divest their interest, or not to invest, in us. In addition, certain institutional investors may have investment policies or restrictions that prevent them from holding securities of companies that have contracts with countries identified by the U.S. government as state sponsors of terrorism. In addition, our reputation and the market for our securities may be adversely affected if we engage in certain other activities, such as entering into drilling contracts with individuals or entities in countries subject to significant U.S. sanctions and embargo laws that are not controlled by the governments of those countries, or engaging in operations associated with those countries pursuant to contracts with third parties that are unrelated to those countries or entities controlled by their governments.

Our operations present hazards and risks that require significant and continuous oversight, and we depend upon the security and reliability of our technologies, systems and networks in numerous locations where we conduct business.

Our floaters utilize certain technologies that make us vulnerable to cyber attacks that we may not be able to adequately protect against. These cybersecurity risks could disrupt certain of our operations for an extended period of time and result in the loss of critical data and in higher costs to correct and remedy the effects of such incidents. If our systems for protecting against information technology and cybersecurity risks prove to be insufficient, we could be materially adversely affected by having our business and financial systems compromised, our proprietary information altered, lost or stolen, or our business operations and safety procedures disrupted.

Fluctuations in exchange rates and nonconvertibility of currencies could result in unfavorable impacts on us.

We may experience unfavorable currency exchange impacts where revenues are received or expenses are paid in nonconvertible currencies or where we do not hedge an exposure to a foreign currency. We may also incur losses as a result of an inability to collect revenues because of a shortage of convertible currency available to the country of operation, controls over currency exchange or controls over the repatriation of income or capital.

We are, from time to time, involved in various litigation matters. These matters may include, among other things, contract disputes, personal injury claims, asbestos and other toxic tort claims, environmental claims or proceedings, employment matters, governmental claims for taxes or duties, and other litigation that arises in the ordinary course of our business. Although we intend to defend these matters vigorously, we cannot predict with certainty the outcome or effect of any claim or other litigation matter, and there can be no assurance as to the ultimate outcome of any litigation. Litigation may have an adverse effect on us because of potential negative outcomes, costs of attorneys, the allocation of management’s time and attention, and other factors.

We are a holding company, and we are dependent upon cash flow from subsidiaries to meet our obligations.

We currently conduct our operations through both U.S. and foreign subsidiaries, and our operating income and cash flow are generated by our subsidiaries. As a result, cash we obtain from our subsidiaries is the principal source of funds necessary to meet our debt service obligations. Contractual provisions or laws, as well as our subsidiaries’ financial condition and operating requirements, may limit our ability to obtain cash from our subsidiaries that we require to pay our debt service obligations. Applicable tax laws may also subject such payments to us by our subsidiaries to further taxation.

The inability of our subsidiaries to transfer cash to us may mean that, even though we may have sufficient resources on a consolidated basis to meet our obligations, we may not be permitted to make the necessary transfers from subsidiaries to us in order to provide funds for the payment of our obligations.

We may be unable to achieve some or all of the benefits that we expect to achieve from our separation from Noble.

By separating from Noble, our results of operations and cash flows may be susceptible to greater volatility due to fluctuations in our business levels and other factors that may adversely affect our operating and financial performance. As part of the Noble group of companies, we have historically enjoyed certain benefits of Noble’s operating diversity, purchasing power and opportunities to pursue integrated strategies. In addition, we have enjoyed certain benefits from Noble’s financial resources, including substantial borrowing capacity and capital for investment. Following the Distribution, as an independent, publicly-traded company, we will no longer participate in cash management and funding arrangements with Noble.

Because Noble’s other operations will no longer be available to offset any volatility in our results of operations and cash flows, after the Distribution, volatility in our earnings may be more pronounced than our peers. In addition, we may not have similar diversity or integration opportunities and purchasing power and investors and securities analysts may not place a greater value on our business as an independent public company than on our business as a part of Noble.

After our separation from Noble, Noble’s financial and other resources will no longer be available to us and we may be required to make significant ongoing capital investments to maintain the competitiveness of our fleet. Our debt ratings may be restrained by the age of our fleet and by our fleet’s older-generation standard capabilities. As a result, our access to the debt markets may be limited, we may have a greater cost of capital and our financial covenants will be more restrictive than prior to our separation from Noble.

Our historical combined and unaudited pro forma combined financial statements are not necessarily indicative of our future financial condition, future results of operations or future cash flows nor do they reflect what our financial condition, results of operations or cash flows would have been as an independent public company during the periods presented.

The historical combined financial information we have included in this information statement does not reflect what our financial condition, results of operations or cash flows would have been as an independent public company during the periods presented and is not necessarily indicative of our future financial condition, future results of operations or future cash flows. This is primarily a result of the following factors:

The pro forma adjustments are based on available information and assumptions that we believe are factually supportable. However, it is possible that our assumptions may prove to be inaccurate. In addition, our unaudited pro forma combined financial statements do not give effect to certain on-going additional costs that we expect to incur in connection with being an independent public company. Accordingly, our unaudited pro forma combined financial statements do not reflect what our financial condition or results of operations would have been as an independent public company and are not necessarily indicative of our future financial condition or future results of operations. Please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Unaudited Pro Forma Combined Financial Statements” and our historical combined financial statements and the notes to those statements included in this information statement.

We have been dependent on Noble for business functions and we may encounter difficulties in making the changes necessary to operate as an independent public company.

We have historically used Noble’s infrastructure to support our business functions, including the following functions:

If Noble does not support our business functions and perform the transition services pursuant to the transition services agreement relating to our business following the separation, we may not be able to operate our business effectively and our profitability may decline. In addition, we may be unable to replace in a timely

manner or on comparable terms the services or other benefits that Noble previously provided to us that are not specified in such transition services agreement. Following the expiration of such transition services agreement with Noble, we will no longer have access to Noble’s infrastructure, and we will need to establish our own. We expect to incur substantial costs to establish the necessary infrastructure to enable us to establish these business functions. If we are unable to establish the necessary infrastructure to enable us to perform these functions or if we experience a significant increase in the costs of performing or outsourcing these functions, it would materially adversely affect our business, financial condition and results of operations.

We will incur increased ongoing costs as a result of being a standalone publicly traded company.

We have no history operating as a publicly traded company separate from Noble. After the Distribution, as a publicly traded company, we will incur significant legal, accounting and other expenses. In connection with the spin-off, we expect our shares to be listed on the NYSE. Accordingly, if our shares are approved for listing, we will be subject to SEC and NYSE rules and regulations, which will increase our legal and financial compliance costs and make activities more time-consuming and costly. For example, as a result of becoming a publicly traded company, we will be required to have at least three independent directors, create an audit committee and adopt policies regarding internal controls and disclosure controls and procedures, including the preparation of reports on internal controls over financial reporting. In addition, we will incur additional costs associated with our publicly traded company reporting requirements. It is possible that our actual incremental costs of being a publicly traded company will be materially higher than our current estimate of $8 million per year.

Our operation as an independent public company and resulting changes in management may negatively impact our customer base.

Following our separation from Noble, some of our customers, prospective customers, suppliers or other companies with whom we conduct business may prefer to work with larger companies or different management teams. They may also need assurances that our financial stability on a standalone basis is sufficient to satisfy their requirements for doing or continuing to do business with them. Any failure of parties to be satisfied with our management or financial credibility could have a material adverse effect on our business, financial condition and results of operations.

Our accounting and other management systems and resources may not be adequately prepared to meet the financial reporting and other requirements to which we will be subject following the separation and may strain our resources.

Our financial results previously were included within the combined results of Noble, and our reporting and control systems were appropriate for those of subsidiaries of a public company. However, we were not directly subject to reporting and other requirements of the Exchange Act. As a result of our separation from Noble, we will be directly subject to reporting and other obligations under the Exchange Act, including the requirements of Section 404 of the Sarbanes-Oxley Act of 2002. If the Distribution occurs in 2014, the Sarbanes-Oxley Act of 2002 will require, beginning with the filing of our Annual Report on Form 10-K for the year ending December 31, 2015, annual management assessments of the effectiveness of our internal controls over financial reporting and a report by our independent registered public accounting firm addressing these assessments. These reporting and internal control requirements, in addition to U.K. statutory obligations, will place significant demands on our management and administrative and operational resources, including accounting resources.

To comply with these requirements, we anticipate that we will need to upgrade our systems, including information technology, implement additional financial and management controls, reporting systems and procedures and hire additional accounting and finance staff. We expect to incur additional annual expenses related to these steps and, among other things, directors and officers liability insurance, director fees, SEC reporting, transfer agent fees, increased auditing and legal fees and similar expenses, which expenses may be significant. If we are unable to upgrade our financial and management controls, reporting systems, information

technology and procedures in a timely and effective fashion, our ability to comply with our financial reporting requirements and other rules that apply to reporting companies under the Exchange Act could be impaired. Any failure to achieve and maintain effective internal controls could have an adverse effect on our business, financial condition and results of operations.

The terms of our separation from Noble, the related agreements and other transactions with Noble were determined by Noble and thus may be less favorable to us than the terms we could have obtained from an unaffiliated third party.

Prior to the completion of the Distribution, we will enter into various agreements to complete the separation of our business from Noble and govern our ongoing relationships, including, among others, a master separation agreement, employee matters agreement, a tax sharing agreement, transition services agreements relating to services provided to each other on an interim basis and a transition services agreement relating to Noble’s operations in Brazil.

Under the transition services agreements, Noble will continue to provide various interim corporate support services to us and we will provide various interim support services to Noble. The master separation agreement will provide for, among other things, our responsibility for liabilities relating to our business and the responsibility of Noble for liabilities unrelated to our business. Among other things, the master separation agreement will contain indemnification obligations and ongoing commitments of us and Noble designed to make our company financially responsible for substantially all liabilities that may exist relating to our business activities, whether incurred prior to or after the separation, as well as those obligations of Noble assumed by us pursuant to the master separation agreement. If we are required to indemnify Noble under the circumstances set forth in the master separation agreement, we may be subject to substantial liabilities.

For a description of these agreements and the other agreements that we will enter into with Noble, please read “Certain Relationships and Related Party Transactions.”

Our interests may conflict with those of Noble with respect to business relationships, and we may not be able to resolve these conflicts in a manner favorable to us.

Following the Distribution, our interests may conflict with those of Noble in a number of areas relating to our past and ongoing relationships, including:

We may not be able to resolve any potential conflicts with Noble, and even if we do, the resolution may not be favorable to us. The master separation agreement provides that Noble has no duty to refrain from engaging in activities or lines of business similar to ours and may compete with us and that Noble and its officers, directors and employees will not be liable to us or our shareholders for failing to present specified corporate opportunities to us.

The corporate opportunity provisions in our master separation agreement could enable Noble to benefit from corporate opportunities that might otherwise be available to us.

The master separation agreement will contain provisions related to corporate opportunities that may be of interest to both Noble and us. The master separation agreement will provide that if a corporate opportunity is

offered to one member of our board of directors, while she is also an officer of Noble, that opportunity will belong to Noble unless expressly offered to that person primarily in her capacity as our director, in which case such opportunity will belong to us.

In addition, the master separation agreement will provide that any corporate opportunity that belongs to Noble or to us, as the case may be, may not be pursued by the other, unless and until the party to whom the opportunity belongs determines not to pursue the opportunity and so informs the other party. These provisions create the possibility that a corporate opportunity that may be pertinent to us may be used for the benefit of Noble. Please read “Certain Relationships and Related Party Transactions.”

Noble has obtained private letter rulings from the IRS substantially to the effect that, for U.S. federal income tax purposes, the spin-off and certain related transactions will qualify under Sections 355 and 368 of the Code. The continued effectiveness of the private letter rulings is a condition to the completion of the spin-off. If the factual assumptions or representations made in the private letter ruling requests are inaccurate or incomplete in any material respect, then we will not be able to rely on the rulings. Furthermore, the IRS will not rule on whether a distribution such as the spin-off satisfies certain requirements of Section 355 of the Code. Rather, the private letter rulings are based on representations by Noble that those requirements have been satisfied, and any inaccuracy in those representations could invalidate the rulings.

The spin-off is also conditioned on Noble’s receipt of a legal opinion of Baker Botts L.L.P., in form and substance satisfactory to Noble, substantially to the effect that, for U.S. federal income tax purposes, the spin-off and certain related transactions will qualify under Sections 355 and 368 of the Code. The opinion will rely on, among other things, the continuing validity of the private letter rulings and various assumptions and representations as to factual matters made by Noble and us which, if inaccurate or incomplete in any material respect, would jeopardize the conclusions reached by such counsel in its opinion. The opinion will not be binding on the IRS or the courts, and there can be no assurance that the IRS or the courts will not challenge the conclusions stated in the opinion or that any such challenge would not prevail.

Neither we nor Noble are aware of any facts or circumstances that would cause the assumptions or representations relied on in the private letter rulings or that will be relied on in the opinion to be inaccurate or incomplete in any material respect. If, notwithstanding receipt of the private letter rulings and opinion, the spin-off were determined not to qualify under Sections 355 and 368 of the Code, we and Noble and our initial public shareholders could be subject to significant liabilities relating to taxes. In general, with respect to the spin-off, our initial public shareholders generally would be treated as receiving a taxable distribution of property in an amount equal to the fair market value of Paragon Offshore ordinary shares received. That distribution would be a dividend to the extent of Noble’s current earnings and profits as of the end of the year in which the distribution occurs and any accumulated earnings and profits. For each such shareholder, any amount that exceeded Noble’s earnings and profits would be treated first as a non-taxable return of capital to the extent of such shareholder’s tax basis in its Noble ordinary shares with any remaining amount generally being taxed as a capital gain. Please read “The Spin-Off—Material U.S. Federal Income Tax Consequences of the Spin-Off.”

Potential liabilities associated with certain obligations under the tax sharing agreement cannot be precisely quantified at this time.

Under the terms of the tax sharing agreement we will enter into in connection with the spin-off, we generally will be responsible for all taxes attributable to our business, whether accruing before, on or after the date of the spin-off and Noble generally will be responsible for any taxes arising from the spin-off or certain related transactions that are imposed on us, Noble or its other subsidiaries. However, we would be responsible for any such taxes to the extent resulting from certain actions or failures to act by us that occur after the effective

date of the tax sharing agreement. Our liabilities under the tax sharing agreement could have a material adverse effect on us. At this time, we cannot precisely quantify the amount of liabilities we may have under the tax sharing agreement and there can be no assurances as to their final amounts.

The tax sharing agreement may limit our ability to engage in certain strategic corporate transactions and equity issuances.

Under the tax sharing agreement, we and our affiliates covenant not to take any action, or fail to take any action, after the effective date of the tax sharing agreement, which action or failure to act is inconsistent with the spin-off qualifying under Sections 355 and 368(a)(1)(D) of the Code. In particular, we might determine to continue to operate certain of our business operations for the foreseeable future even if a sale or discontinuance of such business might otherwise have been advantageous. Moreover, in light of the requirements of Section 355(e) of the Code, we might determine to forgo certain transactions, including share repurchases, stock issuances, certain asset dispositions or other strategic transactions for some period of time following the spin-off. In addition, our indemnity obligation under the tax sharing agreement might discourage, delay or prevent a change of control transaction for some period of time following the spin-off.

For a more detailed discussion, please read “Certain Relationships and Related Party Transactions—Tax Sharing Agreement.”

Potential indemnification liabilities to Noble pursuant to the master separation agreement could materially adversely affect our company.

The master separation agreement with Noble will provide for, among other things, the principal corporate transactions required to effect the spin-off, certain conditions to the spin-off and provisions governing the relationship between our company and Noble with respect to and resulting from the spin-off. For a description of the expected terms of the master separation agreement, please read “Certain Relationships and Related Party Transactions—Master Separation Agreement.” Among other things, we expect the master separation agreement to provide for indemnification obligations designed to make our company financially responsible for substantially all liabilities that may exist relating to our business activities incurred after the spin-off. If we are required to indemnify Noble under the circumstances set forth in the master separation agreement, we may be subject to substantial liabilities.

In connection with our separation from Noble, Noble will indemnify us for certain liabilities. However, there can be no assurance that the indemnity will be sufficient to insure us against the full amount of such liabilities, or that Noble’s ability to satisfy its indemnification obligation will not be impaired in the future.

Pursuant to the master separation agreement, tax sharing agreement and transition services agreement relating to Noble’s operations in Brazil, Noble has agreed to indemnify us for certain liabilities. However, third parties could seek to hold us responsible for any of the liabilities that Noble has agreed to retain, and there can be no assurance that the indemnity from Noble will be sufficient to protect us against the full amount of such liabilities, or that Noble will be able to fully satisfy its indemnification obligations. Moreover, even if we ultimately succeed in recovering from Noble any amounts for which we are held liable, we may be temporarily required to bear these losses. If Noble is unable to satisfy its indemnification obligations, the underlying liabilities could have a material adverse effect on our business, financial condition and results of operations.

Several members of our board and management may have conflicts of interest because of their ownership of Noble ordinary shares.

Following the spin-off, several members of our board and management will continue to own Noble ordinary shares because of their prior relationships with Noble. This share ownership could create, or appear to create, potential conflicts of interest when our directors and executive officers are faced with decisions that could have different implications for our company and Noble. Please read “Management.”

There is no existing market for our shares and we do not know if one will develop, which could impede your ability to sell your shares and depress the market price of our shares.

Prior to the spin-off, there has not been a trading market for our shares. We cannot assure you that an active trading market will develop or be sustained or how liquid that market might become for our shares after the spin-off, nor can we predict the prices at which our shares will trade after the spin-off. An active trading market for our shares may not develop as a result of the spin-off or may not be sustained in the future. The lack of an active market for our ordinary shares may make it difficult for you to sell our shares and could lead to our share price being depressed or volatile.

Volatility in the market price of our ordinary shares may prevent you from being able to sell your shares at an acceptable price. The market price of our shares could fluctuate significantly due to a number of factors, many of which are beyond our control, including those described above and the following:

These factors may materially reduce the market price of our shares, regardless of our operating performance. In addition, price volatility may be greater if the public float and trading volume of our shares is low.

If a substantial number of shares become available for sale and are sold in a short period of time, the market price of our shares could decline.

Future sales or the availability for sale of substantial amounts of our shares in the public market could adversely affect the prevailing market price of our shares and could impair our ability to raise capital through future sales of equity securities. Upon consummation of the spin-off, shares will be reserved for issuance under our equity incentive plan, and we may issue equity in offerings to fund acquisitions and other expenditures,

which may decrease the value of our shareholders’ investment in us. Any decline in the price of our shares might impede our ability to raise capital through the issuance of additional shares or other equity securities. We may also grant registration rights covering shares issued in connection with any acquisition or investment. Prior to the completion of the spin-off, Noble, our sole shareholder is expected to adopt resolutions permitting our board of directors to issue up to $ nominal value of shares (or shares, which equals approximately % of our outstanding shares on the Distribution Date) within the following five years without further shareholder approval, and such issuances would not be subject to shareholder preemptive rights.

If securities analysts do not publish research or reports about our company, or issue unfavorable commentary about us or downgrade our shares, the price of our shares could decline.

The trading market for our shares will depend in part on the research and reports that third-party securities analysts publish about our company and our industry. Because our ordinary shares will initially be distributed to the public through the spin-off, there will not be a marketing effort relating to the initial distribution of our shares of the type that would typically be part of an initial public offering of shares. We may be unable or slow to attract research coverage and if one or more analysts cease coverage of our company, we could lose visibility in the market. In addition, one or more of these analysts could use estimation or valuation methods that we do not agree with, downgrade our shares or issue other negative commentary about our company or our industry. As a result of one or more of these factors, the trading price of our shares could decline.

We have no obligation to, and may not be able to, declare or pay dividends on our shares. If we do not declare and pay dividends on our shares, our share price could decline.

We intend to declare and pay dividends on our shares based on our financial condition and results of operations, although we have no obligation under U.K. law or our articles of association to do so. Additionally, we may not be able to declare and pay dividends on our shares. Dividends can be declared either by our directors or by the passing of an ordinary shareholder resolution (i.e., passed with a majority of the votes cast). The total amount of dividends on our shares is limited to the amount of our “distributable profits,” as defined under U.K. law. We may need to create distributable profits sufficient to pay our desired amount of dividends through a court approved reduction of capital or other customary means which may not be successful and which could result in substantial costs. Please read “Description of Share Capital—Dividends.” In addition, agreements governing certain of our indebtedness may restrict our ability to pay dividends. If we do not pay dividends as expected, our share price could decline.

Substantial sales of our shares by us or our shareholders could cause our share price to decline and issuances by us will dilute your ownership in our company.

Any sales of substantial amounts of our shares in the public market after the separation, or the perception that these sales might occur, could lower the market price of our shares and impede our ability to raise capital through the issuance of equity securities. Our largest shareholders could sell the shares they receive in the Distribution for various reasons. For example, such shareholders may not believe that our business profile or level of market capitalization as an independent public company fits their investment objectives. Further, if we issue additional equity securities to raise additional capital, your ownership interest in our company will be diluted and the value of the shares you hold may be reduced. Prior to the completion of the spin-off, Noble, our sole shareholder is expected to adopt resolutions permitting our board of directors to issue up to $ nominal value of shares (or shares, which equals approximately % of our outstanding shares on the Distribution Date) within the following five years without further shareholder approval, and such issuances would not be subject to shareholder preemptive rights.

Transfers of our shares may be subject to stamp duty or stamp duty reserve tax in the U.K., which would increase the cost of dealing in our shares.

Stamp duty or stamp duty reserve tax (SDRT) are imposed in the U.K. on certain transfers of chargeable securities (which include shares in companies incorporated in the U.K.) at a rate of 0.5% of the consideration paid for the transfer. Certain issues or transfers of shares to depositories or into clearance systems may be charged at a higher rate of 1.5%.

You are strongly encouraged to hold your shares in book entry form through the facilities of DTC. Transfers of shares held in book entry form through DTC will not attract a charge to stamp duty or SDRT in the U.K. A transfer of title in the shares from within the DTC system out of DTC and any subsequent transfers that occur entirely outside the DTC system, including repurchase by us, will attract a charge to stamp duty or SDRT at a rate of 0.5% of any consideration, which is payable by the transferee of the shares. Any such duty must be paid (and the relevant transfer document, if any, stamped by HMRC) before the transfer can be registered in the books of Paragon Offshore. However, if those shares are redeposited into DTC, the redeposit will attract stamp duty or SDRT at the rate of 1.5% to be paid by the transferor.

In connection with the completion of the spin-off, we expect to put in place arrangements to require that shares held in certificated form cannot be transferred into the DTC system until the transferor of the shares has first delivered the shares to a depositary specified by us so that SDRT may be collected in connection with the initial delivery to the depositary. Any such shares will be evidenced by a receipt issued by the depositary. Before the transfer can be registered in our books, the transferor will also be required to put the depositary in funds to settle the resultant liability to SDRT, which will be charged at a rate of 1.5% of the value of the shares.

If our shares are not eligible for deposit and clearing within the facilities of DTC, then transactions in our securities may be disrupted.

The facilities of DTC are a widely-used mechanism that allow for rapid electronic transfers of securities between the participants in the DTC system, which include many large banks and brokerage firms. Our shares will be eligible for deposit and clearing within the DTC system. We expect to enter into arrangements with DTC whereby we will agree to indemnify DTC for any stamp duty or SDRT that may be assessed upon it as a result of its service as a depository and clearing agency for our shares. We expect these actions, among others, will result in DTC agreeing to accept the shares for deposit and clearing within its facilities.

DTC is not obligated to accept the shares for deposit and clearing within its facilities at the closing and, even if DTC does initially accept the shares, it will generally have discretion to cease to act as a depository and clearing agency for the shares. If DTC determined prior to the completion of the spin-off that the shares are not eligible for clearance within the DTC system, then we would not expect to complete the Transactions contemplated by this information statement in their current form. However, if DTC determined at any time after the completion of the spin-off that the shares were not eligible for continued deposit and clearance within its facilities, then we believe the shares would not be eligible for continued listing on a U.S. securities exchange or inclusion in the Standard & Poor’s 500 Index and trading in the shares would be disrupted. While we would pursue alternative arrangements to preserve our listing and maintain trading, any such disruption could have a material adverse effect on the trading price of the shares.

Provisions in our articles of association are intended to have anti-takeover effects that could discourage an acquisition of us by others, and may prevent attempts by shareholders to replace or remove our current management.

Certain provisions in our articles of association are intended to have the effect of delaying or preventing a change in control of us or changes in our management. For example, we expect that our articles of association will include provisions that establish an advance notice procedure for shareholder resolutions to be brought before an annual meeting of our shareholders, including proposed nominations of persons for election to our

board of directors. U.K. law also prohibits the passing of written shareholder resolutions by public companies. Our board of directors will have the necessary corporate authority, without further action of our shareholders for a period of five years, but subject to our statutory and fiduciary duties, to give effect to a shareholder rights plan and to fix the terms thereof. Under a shareholder rights plan, subscription rights to acquire newly issued shares in Paragon Offshore would be issued to all shareholders. The exercise of these subscription rights would not be dependent on our having a need for new capital. The newly issued shares may be of any class and so may have rights equal to or in priority to our Ordinary Shares. After a person acquires beneficial ownership of a specified percentage (typically 20 percent) of our outstanding shares, the rights become exercisable by all holders thereof (other than the acquiring person and any affiliated or associated persons of it). Each such holder of a right would, upon the right becoming exercisable, have the right to receive upon exercise shares with a market value greater than the exercise price. As a result, such a plan could make it more difficult for another party to obtain control of Paragon Offshore by threatening to dilute a potential acquirer’s ownership interest in the company under certain circumstances. These provisions, alone or together, could delay or prevent hostile takeovers and changes in control or changes in our management, even if these events would be beneficial for our shareholders. Please read “Description of Share Capital.”

The enforcement of civil liabilities against us may be more difficult than the enforcement of civil liabilities against a U.S. corporation.

Because we will be a public limited company incorporated under U.K. law, investors could experience more difficulty enforcing judgments obtained against us in U.S. courts than would be the case for U.S. judgments obtained against a U.S. corporation. In addition, it may be more difficult or impossible to bring some types of claims against us in courts in the U.K. than it would be to bring similar claims against a U.S. company in a U.S. court.

As a result of shareholder approval requirements, we may have less flexibility as a U.K. public limited company than as a U.S. corporation with respect to certain aspects of capital management.

Under Delaware law, directors may issue, without further shareholder approval, any shares authorized in the certificate of incorporation of a Delaware corporation that are not already issued or reserved. Delaware law also provides substantial flexibility in establishing the terms of preferred shares. However, U.K. law provides that, subject to certain limited exceptions, a board of directors may only allot shares with the prior authorization of shareholders, such authorization being up to the aggregate nominal amount of shares and for a maximum period of five years, each as specified in the articles of association or relevant shareholder resolution. This authorization would need to be renewed by our shareholders upon or before its expiration (i.e., at least every five years).

U.K. law also generally provides shareholders with preemptive rights when new shares are issued for cash; however, it is possible for the articles of association, or shareholders in general meeting, to exclude preemptive rights. Such an exclusion of preemptive rights may be for a maximum period of up to five years from the date of adoption of the articles of association, if the exclusion is contained in the articles of association, or from the date of the shareholder resolution, if the exclusion is by shareholder resolution. In either case, this exclusion would need to be renewed upon or before its expiration (i.e., at least every five years). Prior to the completion of the spin-off, Noble, our sole shareholder is expected to adopt resolutions permitting our board of directors to allot up to $ nominal value of shares (or shares, which equals approximately % of our outstanding shares on the Distribution Date) within the following five years without further shareholder approval and to waive preemptive rights with respect to such shares.

U.K. law also prohibits a company from repurchasing its own shares without the prior approval of a shareholder resolution. For a public company, such approval may last for a maximum period of up to five years and only permits shares to be repurchased using distributable profits or the proceeds of a new issue of shares. Prior to the consummation of the spin-off, our sole shareholder is expected to adopt ordinary resolutions permitting our board of directors to repurchase up to of our shares. Currently, we do not expect to repurchase any shares in the near future after the Distribution.

We cannot assure you that situations will not arise where such shareholder approval requirements for any of these actions would deprive our shareholders of substantial capital management benefits.

This information statement contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact included in this information statement are forward-looking statements. These statements relate to analyses and other information, which are based on forecasts of future results and estimates of amounts not yet determinable. These statements also relate to our future prospects, developments and business strategies. These forward-looking statements are identified by the use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “predict,” “project” and similar terms and phrases, including references to assumptions. However, these words are not the exclusive means of identifying such statements. These statements are contained in many sections of this information statement, including those entitled “Summary,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business.” Although we believe that our plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that we will achieve those plans, intentions or expectations. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected.

Important factors that could cause actual results to differ materially from our expectations, or cautionary statements, are disclosed under the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this information statement. All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements contained in this information statement under the heading “Risk Factors,” as well as other cautionary statements that are made from time to time in our other SEC filings and public communications. You should evaluate all forward-looking statements made in this information statement in the context of these risks and uncertainties.

We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. The forward-looking statements included in this information statement are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

The board of directors of Noble regularly reviews the various operations conducted by Noble to ensure that resources are deployed and activities are pursued in the best interest of its shareholders. On September 24, 2013, Noble announced that its board of directors had approved in principle a plan involving the pro rata distribution of all of Paragon Offshore ordinary shares to Noble’s shareholders in a distribution intended to be tax-free to Noble, Paragon Offshore and such shareholders for U.S. federal income tax purposes (other than with respect to any cash received in lieu of fractional shares). On , 2014, Noble’s board of directors approved the spin-off. The spin-off is subject to, among other things, final approval by the Noble board of directors and the conditions described below under “—Spin-Off Conditions and Termination.”

Our company is currently an indirect, wholly-owned subsidiary of Noble. After giving effect to the spin-off, we will own the assets and be obligated on the liabilities comprising most of Noble’s standard specification drilling business.

Noble will accomplish our separation through a pro rata distribution of 100% of our outstanding ordinary shares to Noble’s shareholders, which we refer to as the Distribution, on , 2014, the Distribution Date. As a result of the spin-off, each registered holder of ordinary shares of Noble as of 5:00 p.m. New York City time on , 2014, the record date, will be entitled to:

Noble shareholders will not be required to pay for Paragon Offshore ordinary shares received in the spin-off or to surrender or exchange Noble ordinary shares in order to receive Paragon Offshore ordinary shares or to take any other action in connection with the spin-off. At the annual general meeting in June 2014, Noble shareholders will be asked to approve an amendment to the articles to permit the distribution. No further vote will be required or sought in connection with the spin-off, and Noble shareholders will have no appraisal rights in connection with the spin-off.

Noble’s board and management believe that our separation from Noble will provide the following benefits:

After the spin-off, we will be an independent public company. Immediately following the spin-off, we expect that approximately ordinary shares will be issued and outstanding, based on the number of Noble

ordinary shares outstanding on , 2014. The actual number of Paragon Offshore ordinary shares to be distributed will be determined based on the number of Noble ordinary shares outstanding as of the record date. We also expect to have approximately shareholders of record, based on the number of shareholders of record of ordinary shares of Noble on , 2014.

We and Noble will enter into a number of agreements that govern the spin-off and our future relationship. For a more detailed description of these agreements, please read “Certain Relationships and Related Party Transactions.”

You will not be required to make any payment for the Paragon Offshore ordinary shares you receive, nor will you be required to surrender or exchange your Noble ordinary shares or take any other action in order to receive the Paragon Offshore ordinary shares to which you are entitled. The spin-off will not affect the number of outstanding Noble ordinary shares or any rights of Noble shareholders, although it will affect the market value of the outstanding Noble ordinary shares.

The general terms and conditions relating to the spin-off will be set forth in a master separation agreement between Noble and us. For a description of the expected terms of that agreement, please read “Certain Relationships and Related Party Transactions —Master Separation Agreement.” Under the master separation agreement, the spin-off will be effective on the Distribution Date. As a result of the spin-off, each Noble shareholder will be entitled to receive one Paragon ordinary share for every ordinary shares of Noble owned on the record date. As discussed under “—Trading of Noble Ordinary Shares After the Record Date and Prior to the Distribution,” if a holder of record of ordinary shares of Noble sells those shares in the “regular way” market after the record date and on or prior to the Distribution Date, that shareholder also will be selling the right to receive Paragon Offshore ordinary shares in the spin-off. The Distribution will be made in book-entry form. For registered Noble shareholders, our transfer agent will credit their Paragon Offshore ordinary shares to book-entry accounts established to hold their Paragon Offshore ordinary shares. Book-entry refers to a method of recording stock ownership in our records in which no physical certificates are issued. For shareholders who own Noble ordinary shares through a bank or brokerage firm, their Noble ordinary shares will be credited to their accounts by the bank or broker. Please read “—When and How You Will Receive Paragon Offshore Shares” below. Each of the Paragon Offshore ordinary shares that is distributed will be validly issued, fully paid and nonassessable. Holders of ordinary shares of Paragon Offshore will not be entitled to preemptive rights in connection with the Distribution. Please read “Description of Share Capital.”

On the Distribution Date, Noble will release ordinary shares of Paragon Offshore for distribution by Computershare Trust Company, N.A., the distribution agent. The distribution agent will cause the Paragon Offshore ordinary shares to which you are entitled to be registered in your name or in the “street name” of your bank or brokerage firm.

“Street Name” Holders. Many Noble shareholders hold Noble ordinary shares through an account with a bank or brokerage firm. If this applies to you, that bank or brokerage firm is the registered holder that holds the shares on your behalf. For shareholders who hold their Noble ordinary shares in an account with a bank or brokerage firm, the Paragon Offshore ordinary shares distributed to you will be registered in the “street name” of your bank or broker, who in turn will electronically credit your account with the Paragon Offshore ordinary shares that you are entitled to receive in the spin-off. We anticipate that banks and brokers will generally credit their customers’ accounts with Paragon Offshore ordinary shares on or shortly after the Distribution Date. We encourage you to contact your bank or broker if you have any questions regarding the mechanics of having Paragon Offshore ordinary shares credited to your account.

Registered Holders. If you are the registered holder of ordinary shares of Noble and hold your Noble ordinary shares either in physical form or in book-entry form, the Paragon Offshore ordinary shares distributed to you will be registered in your name and you will become the holder of record of that number of Paragon Offshore ordinary shares. Our distribution agent will send you a statement reflecting your ownership of Paragon Offshore ordinary shares.

Direct Registration System. As part of the spin-off, we will be adopting a direct registration system for book-entry share registration and transfer of Paragon Offshore ordinary shares. Paragon Offshore ordinary shares to be distributed in the spin-off will be distributed as uncertificated shares registered in book-entry form through the direct registration system. No certificates representing your shares will be mailed to you in connection with the spin-off. Under the direct registration system, instead of receiving share certificates, you will receive a statement reflecting your ownership interest in our shares. Contact information for our transfer agent and registrar is provided under “Questions and Answers About the Spin-Off.” The distribution agent will begin mailing book-entry account statements reflecting your ownership of shares promptly after the Distribution Date. You can obtain more information regarding the direct registration system by contacting our transfer agent and registrar.

The transfer agent will not deliver any fractional ordinary shares of Paragon Offshore in connection with the spin-off. Instead, the transfer agent will aggregate all fractional shares and sell them on behalf of those holders who otherwise would be entitled to receive a fractional share. We anticipate that these sales will occur as soon as practicable after the Distribution Date. Those holders will then receive a cash payment in the form of a check in an amount equal to their pro rata share of the total gross proceeds of those sales. We expect that checks will generally be distributed to shareholders within one to two weeks after the Distribution Date. Broker selling expenses in connection with these sales will be paid by Noble.

It is expected that all fractional shares held in street name will be aggregated and sold by brokers or other nominees according to their standard procedures. You should contact your broker or other nominee for additional details.

None of Noble, our company or the transfer agent will guarantee any minimum sale price for the fractional ordinary shares of Paragon Offshore. Neither we nor Noble will pay any interest on the proceeds from the sale of fractional shares. The receipt of cash in lieu of fractional shares will generally be taxable to the recipient shareholders. Please read “—Material U.S. Federal Income Tax Consequences of the Spin-Off.”

There is currently no public market for Paragon Offshore ordinary shares. A condition to the spin-off is the listing on the NYSE of Paragon Offshore ordinary shares. We have applied to list Paragon Offshore ordinary shares on the NYSE under the symbol “PGN.” We anticipate that trading of Paragon Offshore ordinary shares will commence on a when-issued basis on or shortly after the record date. When-issued trading refers to a sale or purchase made conditionally because the security has been authorized but not yet issued. On the first trading day following the Distribution Date, when-issued trading with respect to Paragon Offshore ordinary shares will end and regular way trading will begin. Regular way trading refers to trading after a security has been issued and typically involves a transaction that settles on the third full business day following the date of the transaction. Neither we nor Noble can assure you as to the trading price of Paragon Offshore ordinary shares after the spin-off or as to whether the trading price of one Noble ordinary share after the spin-off plus the trading price of one Paragon Offshore ordinary share distributed for ordinary shares of Noble will not, in the aggregate, be less than the trading price of one Noble ordinary share before the spin-off. The trading price of Paragon Offshore ordinary shares is likely to fluctuate significantly, particularly until an orderly market develops. See “Risk Factors—Risks Relating to Ownership of Our Ordinary Shares.” In addition, we cannot predict any change that may occur in the trading price or volume of Noble’s ordinary shares as a result of the spin-off.

Trading of Noble Ordinary Shares After the Record Date and Prior to the Distribution

Beginning on or shortly after the record date and through the Distribution Date, there will be two concurrent markets in which to trade Noble ordinary shares: a regular way market and an ex-distribution market. Noble ordinary shares that trade in the regular way market will trade with an entitlement to Paragon Offshore ordinary shares distributed in connection with the spin-off. Shares that trade in the ex-distribution market will trade without an entitlement to Paragon Offshore ordinary shares distributed in connection with the spin-off. Therefore, if you owned Noble ordinary shares at 5:00 p.m., New York City time, on the record date and sell those shares in the regular way market on or prior to the Distribution Date, you also will be selling your right to receive Paragon Offshore ordinary shares that would have been distributed to you in connection with the spin-off. If you sell those Noble ordinary shares in the ex-distribution market prior to or on the Distribution Date, you will still receive Paragon Offshore ordinary shares that were to be distributed to you in connection with the spin-off as a result of your ownership of Noble ordinary shares.

We expect to have approximately million ordinary outstanding immediately after the spin-off, based upon the number of Noble ordinary shares outstanding on , 2014. Paragon Offshore ordinary shares distributed to Noble shareholders will be freely transferable, except for shares received by persons who may be deemed to be our “affiliates” under the Securities Act of 1933, as amended, or the Securities Act. Persons who may be deemed to be our affiliates after the spin-off generally include individuals or entities that control, are controlled by, or are under common control with us, and may include some or all of our directors and executive officers. Our affiliates will be permitted to sell Paragon Offshore ordinary shares only pursuant to an effective registration statement under the Securities Act or an exemption from the registration requirements of the Securities Act, such as the exemption afforded by Rule 144.

In connection with the spin-off, we currently expect that Noble’s outstanding equity-based compensation awards will generally be treated as described below.

Each outstanding Noble restricted stock unit award and option to purchase Noble ordinary shares that is held by a director, officer or employee of Noble who will remain a director, officer or employee of Noble will remain outstanding in accordance with its terms and be adjusted, as necessary, so as to generally preserve the intrinsic value of the award.

Each outstanding option to purchase Noble ordinary shares under Noble’s 1991 Stock Option and Restricted Stock Plan, or 1991 Plan, that is held by an individual who is or will be an officer or employee of Paragon upon the spin-off will become fully vested and will, as necessary, be adjusted so as to generally preserve the intrinsic value of the option. In addition, each such option will remain outstanding and exercisable as an option to purchase Noble ordinary shares for five years following the spin-off, or if shorter, the remainder of the option’s term.

Each outstanding Noble restricted stock unit award comprised of time-vested restricted stock units, or TVRSUs, under the 1991 Plan that is held by an individual who is or will be an officer or employee of Paragon upon the spin-off will be cancelled. In replacement of any such cancelled Noble TVRSU award, Paragon will grant its applicable officers and employees a TVRSU award with respect to Paragon pursuant to its equity compensation program that will be established prior to the spin-off. This replacement Paragon TVRSU award will have a generally equivalent intrinsic value as compared to the cancelled Noble TVRSU award, as in effect immediately prior to the spin-off. In addition, the vesting schedule that applied to the cancelled Noble TVRSU award will apply with respect to the replacement Paragon TVRSU award.

Each outstanding Noble restricted stock unit award comprised of performance-vested restricted stock units, or PVRSUs under the 1991 Plan and held by an individual who is or will be an officer or employee of Paragon upon the spin-off will be continued, in part, and cancelled, in part. The portion of each Noble PVRSU award that

will be continued (as a Noble PVRSU award) is the number of PVRSUs originally granted multiplied by a fraction, (i) the numerator of which is the number of days elapsed from the beginning of the performance period to the date of the spin-off, and (ii) the denominator of which is the number of days in the performance period. The continued portion of each Noble PVRSU award will be adjusted, as necessary, so as to generally preserve the intrinsic value of the continued portion of the award. After applying the above fraction, the remainder of each Noble PVRSU award that is not continued pursuant to the foregoing will be cancelled. In replacement of the cancelled portion of a Noble PVRSU award, Paragon will either grant the individual a Paragon PVRSU award with the same vesting schedule that applied to the cancelled portion of the Noble award or provide the individual compensation of equivalent value to the benefit the individual would have received had the cancelled portion of the Noble award remained in effect.

Adjustments with respect to Noble’s equity-based compensation awards, or the portion thereof, that remain outstanding or are otherwise continued will be based on the ratio of (i) Noble’s “regular way with due bills” average closing stock price during the 10 trading days preceding the spin-off, to (ii) Noble’s “regular way” average closing stock price during the 10 trading days after the spin-off. In order to determine the number of ordinary shares or restricted share units that should be subject to the award after the spin-off, this ratio is multiplied by the number of ordinary shares or units that were subject to the award immediately prior to the spin-off. In order to determine the exercise price, if applicable, that should apply to the award after the spin-off, the exercise price that was in effect immediately prior to the spin-off is divided by this adjustment ratio.

Adjustments with respect to Noble’s equity-based compensation awards, or the portion thereof, that are cancelled and replaced with Paragon awards will be based on the ratio of (i) Noble’s “regular way with due bills” average closing stock price during the 10 trading days preceding the spin-off, to (ii) Paragon’s “regular way” average closing stock price during the 10 trading days after the spin-off. In order to determine the number of restricted share units that should be subject to the award after the spin-off, this ratio is multiplied by the number of units that were subject to the award immediately prior to the spin-off.

In addition, to the extent a dividend equivalent payment would have otherwise been paid by Noble in 2014 with respect to a Noble equity-based compensation award (or the portion thereof) that is cancelled (“Cancelled Award”) had such Cancelled Award remained in effect, Paragon will pay a cash bonus to the officer or employee of Paragon who held such Cancelled Award. The amount of the bonus payment will equal the dividend equivalent payment that would have otherwise been paid by Noble with respect to such Cancelled Award, if such Cancelled Award had remained in effect.

We will provide more details regarding the treatment of equity awards as a result of the spin-off in this information statement when available.

We expect that the spin-off will be effective on , 2014, provided that, among other things:

Noble may waive one or more of these conditions in its sole and absolute discretion, and the determination by Noble regarding the satisfaction of these conditions will be conclusive. The fulfillment of these conditions will not create any obligation on Noble’s part to effect the Distribution, and Noble has reserved the right to amend, modify or abandon any and all terms of the Distribution and the related transactions at any time prior to the Distribution Date.

The following is a summary of material U.S. federal income tax consequences relating to the spin-off. This summary is based on the Code, related U.S. Treasury regulations, and interpretations of the Code and the U.S. Treasury regulations by the courts and the IRS, in effect as of the date of this information statement, and all of which are subject to change, possibly with retroactive effect. This summary does not discuss all the tax considerations that may be relevant to Noble shareholders in light of their particular circumstances. This summary also does not address the consequences to Noble shareholders subject to special treatment under the U.S. federal income tax laws, including, but not limited to, the following:

This summary is limited to Noble shareholders that are U.S. holders, as defined below, and that hold their Noble ordinary shares as capital assets, within the meaning of Section 1221 of the Code. Finally, this summary does not address any state, local or foreign tax consequences or the tax on certain net investment income imposed under Section 1411 of the Code.

NOBLE SHAREHOLDERS ARE URGED TO CONSULT THEIR OWN TAX ADVISORS CONCERNING THE U.S. FEDERAL, STATE AND LOCAL, AND FOREIGN TAX CONSEQUENCES OF THE SPIN-OFF TO THEM.

As used herein, the term “U.S. holder” means a beneficial owner of Noble’s ordinary shares that is, for U.S. federal income tax purposes:

The spin-off is conditioned on the continued effectiveness of private letter rulings received by Noble from the IRS and Noble’s receipt of a legal opinion from Baker Botts L.L.P. (which opinion will rely, in part, on the continued effectiveness of the private letter rulings), in each case, substantially to the effect that the spin-off and certain related transactions will qualify under Sections 355 and 368 of the Code.

U.S. Treasury regulations also generally provide that if a Noble shareholder holds different blocks of Noble ordinary shares (generally Noble ordinary shares purchased or acquired on different dates or at different prices), the aggregate basis for each block of Noble ordinary shares purchased or acquired on the same date and at the

same price will be allocated, to the greatest extent possible, between the Paragon Offshore ordinary shares received in the spin-off in respect of such block of Noble ordinary shares and such block of Noble ordinary shares, in proportion to their respective fair market values, and the holding period of ordinary shares of Paragon Offshore received in the spin-off in respect of such block of Noble ordinary shares will include the holding period of such block of Noble ordinary shares. If a Noble shareholder is not able to identify which particular Paragon Offshore ordinary shares are received in the spin-off with respect to a particular block of Noble ordinary shares, for purposes of applying the rules described above, the shareholder may designate which Paragon Offshore ordinary shares are received in the spin-off in respect of a particular block of Noble ordinary shares, provided that such designation is consistent with the terms of the spin-off. Holders of ordinary shares of Noble are urged to consult their own tax advisors regarding the application of these rules to their particular circumstances.

Although private letter rulings from the IRS generally are binding on the IRS, if the factual representations or assumptions made in the private letter ruling requests are inaccurate or incomplete in any material respect, we will not be able to rely on the private letter rulings. Furthermore, the IRS will not rule on whether a distribution such as the spin-off satisfies certain requirements of Section 355 of the Code. Rather, the private letter rulings are based on representations by Noble that these requirements have been satisfied, and any inaccuracy in such representations could invalidate the private letter rulings. In addition to the continued effectiveness of the private letter rulings from the IRS, Noble has made it a condition to the spin-off that Noble obtain a legal opinion of Baker Botts L.L.P. substantially to the effect that the spin-off and certain related transactions will qualify under Sections 355 and 368 of the Code. The opinion will address those matters upon which the IRS will not rule and will rely on the private letter rulings as to matters covered by the private letter rulings. In addition, the opinion will be based on, among other things, certain assumptions and representations made by Noble and us, which if incorrect or inaccurate in any material respect would jeopardize the conclusions reached by such counsel in its opinion. The opinion will not be binding on the IRS or the courts and will be subject to other qualifications and limitations.

Notwithstanding receipt by Noble of the private letter rulings and opinion of counsel, the IRS could assert that the spin-off and certain related transactions do not satisfy the requirements of Sections 355 and 368 of the Code. If the IRS were successful in making any such assertion, we and Noble and our initial public shareholders could be subject to significant liabilities relating to taxes. In general, with respect to the spin-off, our initial public shareholders generally would be treated as receiving a taxable distribution of property in an amount equal to the fair market value of Paragon Offshore ordinary shares received. That distribution would be a dividend to the extent of Noble’s current earnings and profits as of the end of the year in which the distribution occurs and any accumulated earnings and profits. For each such shareholder, any amount that exceeded Noble’s earnings and profits would be treated first as a non-taxable return of capital to the extent of such shareholder’s tax basis in its Noble ordinary shares with any remaining amount generally being taxed as a capital gain.

In connection with the spin-off, we and Noble will enter into a tax sharing agreement pursuant to which we will agree to be responsible for certain liabilities and obligations following the spin-off. Under the terms of the tax sharing agreement, we generally will be responsible for all taxes attributable to our business, whether accruing before, on or after the date of the spin-off and any taxes arising from the spin-off or certain related transactions that are imposed on us, Noble or its other subsidiaries to the extent such taxes result from certain actions or failures to act by us that occur after the effective date of the tax sharing agreement. See “Certain Relationships and Related Party Transactions—Tax Sharing Agreement.”

Under U.S. Treasury regulations, each Noble shareholder who, immediately before the Distribution, owns at least 5% of the total outstanding Noble ordinary shares must attach to such shareholder’s U.S. federal income tax return for the year in which the spin-off occurs a statement setting forth certain information relating to the spin-off. In addition, all shareholders are required to retain permanent records relating to the amount, basis and fair market value of our stock which they receive and to make those records available to the IRS on request of the IRS.

THE FOREGOING IS A SUMMARY OF THE MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE SPIN-OFF UNDER CURRENT LAW AND IS FOR GENERAL INFORMATION ONLY. THE FOREGOING DOES NOT PURPORT TO ADDRESS ALL U.S. FEDERAL INCOME TAX CONSEQUENCES OR TAX CONSEQUENCES THAT MAY ARISE UNDER THE TAX LAWS OF OTHER JURISDICTIONS OR THAT MAY APPLY TO PARTICULAR CATEGORIES OF SHAREHOLDERS. EACH NOBLE SHAREHOLDER SHOULD CONSULT ITS OWN TAX ADVISOR AS TO THE PARTICULAR TAX CONSEQUENCES OF THE SPIN-OFF TO SUCH SHAREHOLDER, INCLUDING THE APPLICATION OF U.S. FEDERAL, STATE, LOCAL AND FOREIGN TAX LAWS, AND THE EFFECT OF POSSIBLE CHANGES IN TAX LAWS THAT MAY AFFECT THE TAX CONSEQUENCES DESCRIBED ABOVE.

There should not be any U.K. tax consequences of receiving the dividend of Paragon Offshore shares for shareholders who are not tax resident in the U.K. and who do not carry on a trade in the U.K. through a permanent establishment with which their holding of shares in Noble is associated.

The above statement is based on current U.K. tax legislation and current practice of HM Revenue & Customs. ANY PERSON WHO IS IN ANY DOUBT AS TO HIS OR HER TAX POSITION SHOULD CONSULT HIS OR HER OWN PROFESSIONAL ADVISERS IMMEDIATELY.

This information statement is being furnished solely to provide information to Noble shareholders who will receive Paragon Offshore ordinary shares in the spin-off. It is not to be construed as an inducement or encouragement to buy or sell any of our securities or any Noble securities. Changes may occur after the date set forth on the front cover and neither Noble nor we undertake any obligation to update the information, except to the extent applicable securities laws require us to do so.

The following table sets forth our cash and cash equivalents and consolidated capitalization as of March 31, 2014:

You should read the following table in conjunction with the sections entitled “Unaudited Pro Forma Combined Financial Statements,” “Selected Historical Combined Financial Data,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our historical combined financial statements and related notes included elsewhere in this information statement.

The timing, declaration, amount and payment of these dividends to shareholders, including the initial quarterly dividend, falls within the discretion of our board of directors. The proposal or declaration of cash dividends by our board of directors, and the amount thereof, will depend on many factors, including our financial condition, earnings, future business prospects, opportunities, share price, capital requirements and any other factors our board of directors may deem relevant. In addition, we expect the agreements governing certain of our indebtedness to restrict the amount of dividends we may pay; however, we expect such agreements to permit payment of dividends in the amounts described above so long as we are not in default under any such agreement.

Under U.K. law, we will generally only be able to declare dividends out of distributable profits. “Distributable profits” are our accumulated, realized profits not previously utilized by distribution or capitalization, less accumulated, realized losses that have not been previously written off in a reduction or reorganization of capital, calculated on our standalone statutory balance sheet. We intend to undertake capital reductions to create distributable profits sufficient to pay the initial dividend we describe above. In connection with the spin-off, we expect to create at least $400 million of distributable profits, which would be sufficient to allow us to pay dividends in the amounts described above for at least 16 quarters following the spin-off. Please read “Description of Share Capital—Dividends.”

There can be no assurance we will pay any dividend or that we will continue to pay any dividend even if we commence the payment of dividends. Please read “Risk Factors—Risks Related to The Spin-Off and Ownership of Our Shares—We have no obligation to, and may not be able to, declare or pay dividends on our shares. If we do not declare and pay dividends on our shares, our share price could decline.”

On September 24, 2013, Noble Corporation plc (“Noble”), announced a plan to reorganize its business by means of a separation and spin-off of a newly-formed subsidiary, Paragon Offshore plc (“we” or “Paragon Offshore”), whose assets and liabilities would consist of most of Noble’s standard specification drilling business.

Set forth below are the unaudited pro forma combined balance sheet of Paragon Offshore as of March 31, 2014 and the unaudited pro forma combined statements of operations for Paragon Offshore for the three months ended March 31, 2014 and the year ended December 31, 2013. The unaudited pro forma combined financial data for Paragon Offshore has been derived by adjusting the historical combined financial statements of Noble’s standard specification drilling business, our predecessor for accounting purposes (our “Predecessor”).

The separation of Paragon Offshore from Noble is referred to herein as the “Separation.” The plan contemplates the execution of the Separation through the completion of the following steps anticipated to be completed in 2014:

Following the Separation, Noble intends to distribute its shares of Paragon Offshore to Noble shareholders in a spin-off. The distribution of Paragon Offshore shares by Noble is expected to occur in the second half of 2014. The distribution of shares by Noble has no impact to the pro forma results of Paragon Offshore.

The combined financial statements of our Predecessor were prepared on a stand-alone basis and are derived from Noble’s combined financial statements and accounting records. These combined financial statements include assets and liabilities that are specifically identifiable or have been allocated to our Predecessor. Costs directly related to our Predecessor have been included in the accompanying financial statements. Our Predecessor received service and support functions from Noble. The costs associated with these support functions have been allocated relative to Noble in its entirety, which is considered to be the most meaningful under the circumstances.

Our Predecessor’s fleet of mobile offshore drilling rigs consists of 37 jackups, five drillships, four semisubmersibles and two submersibles. The business and assets of our Predecessor also include one FPSO that is currently cold stacked and the provision of drilling and maintenance services (but not a rig) on the Hibernia Project in the Canadian Atlantic, under a five-year contract with a joint venture in which Exxon is the primary operator. Noble will retain its interest in two standard specification jackups and one standard specification semisubmersible drilling rig. Additionally, in July 2013, our Predecessor sold the Noble Lewis Dugger, a standard specification jackup. In January 2014, our Predecessor sold the Noble Joe Alford and the Noble Lester Pettus, two cold stacked submersibles. Pro forma adjustments to exclude these six rigs have been presented in the “Excluded or disposed standard-spec assets” column of the unaudited pro forma combined financial statements.

At the Separation, Paragon Offshore’s fleet will consist of 34 jackups, five drillships, three semisubmersibles and one floating production storage and offloading unit, as well as the Hibernia platform operations.

The pro forma adjustments are based upon currently available information and certain estimates and assumptions, and actual results may differ from the pro forma adjustments. However, we believe that these estimates and assumptions provide a reasonable basis for presenting the significant effects of the contemplated transactions and that the pro forma adjustments are factually supportable and give appropriate effect to those estimates and assumptions and are properly applied in the unaudited pro forma combined financial statements.

As a result of this spin-off, we will become subject to the reporting requirements of the Exchange Act and the Sarbanes-Oxley Act. We will be required to establish procedures and practices as a standalone public company in order to comply with our obligations under those laws and the related rules and regulations. As a result, we expect to incur approximately $8 million of incremental annual expenses related to being a public company, including internal and external audit, investor relations, share administration and regulatory compliance costs. The amount of these expenses will exceed the amount historically allocated to us from Noble for these types of expenses.

The unaudited pro forma combined financial statements are presented for comparative purposes only and may not necessarily be indicative of what the actual financial position or results of operations of Paragon Offshore would have been as of, and for, the period presented, nor does it purport to represent the future financial position or results of operations of Paragon Offshore.

You should read our unaudited pro forma combined financial statements and the accompanying notes in conjunction with our Predecessor’s historical combined financial statements and related notes included elsewhere in this information statement and the financial and other information appearing elsewhere in this information statement, including information contained in “Risk Factors,” “Use of Proceeds,” “Capitalization,” “Selected Historical Combined Financial Data,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Certain Relationships and Related Party Transactions.”

See accompanying notes to the unaudited pro forma combined financial statements.

Unaudited pro forma combined statement of income for the three months ended March 31, 2014

See accompanying notes to the unaudited pro forma combined financial statements.

Unaudited pro forma combined statement of income for the year ended December 31, 2013

See accompanying notes to the unaudited pro forma combined financial statements.

The pro forma adjustments included in the accompanying unaudited pro forma combined financial statements include adjustments to assets, liabilities, revenues and costs that are specifically identifiable or have been allocated directly to the Excluded or disposed standard-spec assets. Shareholders’ equity for the Excluded or disposed standard-spec assets represents the Predecessor’s interest in the recorded net assets of the Excluded or disposed standard-spec assets and cumulative operating results.

The Excluded or disposed standard-spec assets received service and support functions from Noble and certain of its subsidiaries. The costs associated with these support functions have been allocated relative to Noble in its entirety, which is considered to be the most meaningful under the circumstances. The costs were allocated using various allocation inputs, such as head count, services rendered and assets assigned to our Predecessor. These costs have been allocated to the Excluded or disposed standard-spec assets in the same manner they were allocated to our Predecessor.

A reasonable allocation of income taxes to the Excluded or disposed standard-spec assets has been made in instances where the operations of the Excluded or disposed standard-spec assets were included in the filing of a consolidated or combined return of the Predecessor.

We anticipate issuing debt that will aggregate to approximately $ . Based on our current evaluation of market conditions and the environment for debt securities and loans, we are anticipating the weighted average interest rate to be approximately % with a weighted average maturity of years. In addition, we have assumed issuance costs of approximately $ . As such, we have included the $ as long-term debt on the unaudited pro forma combined balance sheet and have included the interest expense in the three months ended March 31, 2014 and the year ended December 31, 2013 unaudited pro forma combined statements of operations. The pro forma adjustments do not include adjustments for capitalized interest for qualifying major projects. The impact of interest expense has been tax adjusted in the unaudited pro forma combined statement of operations at the Predecessor’s effective tax rate for the given period.

In connection with the master separation agreement (“MSA”), we will be required to repay certain intercompany indebtedness owed to Noble using the gross proceeds from third-party debt financings. Noble expects to use such proceeds to repay certain of its outstanding indebtedness. These payments to Noble will be reflected as a pro forma reduction of borrowings under the credit facilities and the commercial paper program which were pushed down to our Predecessor and a reduction of net parent investment. The amounts presently listed are based on current balances and are subject to change prior to the signing of the final MSA.

Income taxes for our Predecessor were prepared on a separate return basis as if the Predecessor had been a standalone company. Actual tax assets and liabilities at the time of separation will be subject to the MSA and a tax sharing agreement both of which have not yet been completed. For purposes of these pro forma financials, no adjustments have been made to our Predecessor financial statements to reflect the assets, liabilities or related indemnities which we ultimately may receive from Noble.

We may receive actual assets and indemnities and be encumbered with certain liabilities as part of our separation with Noble. While certain assets and liabilities have been allocated to us in our Predecessor historical combined financial statements in a manner which we deem reasonable, actual amounts are subject to negotiation and may differ materially from the amounts shown in our Predecessor historical combined financial statements. As we are currently negotiating the form of the MSA with Noble, no pro forma adjustments have been made to reflect certain assets, liabilities or indemnities which may be attributable to us. For more information about the MSA, please read “Certain Relationships and Related Party Transactions—Master Separation Agreement.”

The following table presents selected historical combined financial data of our Predecessor as of the dates and for the periods indicated. The selected historical combined statement of income data for the years ended December 31, 2013, 2012 and 2011 and balance sheet data as of December 31, 2013 and 2012 have been derived from our Predecessor’s audited combined financial statements included elsewhere in this information statement. The selected historical combined statement of income data for the years ended December 31, 2010 and 2009 and balance sheet data as of December 31, 2011, 2010 and 2009 from our Predecessor’s combined financial statements are not included in this information statement. The selected historical combined statement of income data for the three months ended March 31, 2014 and 2013, and balance sheet data as of March 31, 2014, were derived from our Predecessor’s unaudited combined financial statements included elsewhere in this information statement, which include all adjustments, consisting of normal recurring adjustments, which management considers necessary for a fair presentation of the financial position and the results of operations for such periods. Results for the interim periods may not necessarily be indicative of the results for the full year.

Our Predecessor’s historical combined financial information includes expenses of Noble that were allocated to us for certain administrative and operational support functions which were performed by Noble and certain of its subsidiaries. These expenses were allocated in our historical results of operations in a manner consistent with Noble’s internal reporting and evaluation purposes. We consider the expense-allocation methodology to be reasonable for all periods presented. However, these allocations may not necessarily be indicative of the actual expenses we would have incurred as an independent publicly traded company during the periods prior to the spin-off nor is it representative of the costs which we will incur in the future.

Our Predecessor’s historical combined financial information included in this information statement may not be indicative of our future performance and does not necessarily reflect what our financial position and results of operations would have been had we operated as a standalone public company during the periods presented, including changes that will occur in our operations and capital structure as a result of the Transactions.

The following tables should be read together with, and are qualified in their entirety by reference to, the historical combined financial statements and the related notes included elsewhere in this information statement. Among other things, the historical combined financial statements include more detailed information regarding the basis of presentation for the information in the following table. The tables should also be read together with the sections entitled “Capitalization,” “Unaudited Pro Forma Combined Financial Statements,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Certain Relationships and Related Party Transactions” included elsewhere in this information statement.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion analyzes the historical financial condition and results of operations of Noble’s standard specification drilling business. The historical combined financial statements of Noble’s standard specification drilling business as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012 and 2011 and as of March 31, 2014 and for the three months ended March 31, 2014 and 2013 appearing elsewhere in this information statement were prepared on a standalone basis from Noble and are intended to represent the financial results during those periods of Noble’s standard specification drilling business, which is our accounting predecessor (our “Predecessor”). With the exception of two jackups and one semisubmersible that will be retained by Noble, one jackup rig sold by Noble in July 2013 and two cold stacked submersibles sold by Noble in January 2014, all of our Predecessor’s standard specification drilling business will be transferred to Paragon Offshore as part of the Transaction.

You should read the following discussion of the historical financial condition and results of operations of our business in conjunction with our Predecessor’s historical combined financial statements and accompanying notes and our unaudited pro forma combined financial statements and accompanying notes statements included elsewhere in this information statement. This discussion includes forward-looking statements that are subject to risks and uncertainties that may result in actual results differing from statements we make. Please read “Cautionary Statement Concerning Forward-Looking Statements.” Factors that could cause actual results to differ include those risks and uncertainties that are discussed in “Risk Factors.”

Prior to completion of the Transaction, we operated within wholly-owned subsidiaries of Noble. The historical results discussed in this section are those of the standard specification drilling business of Noble, which is our Predecessor for accounting purposes. Our Predecessor’s combined financial statements included in this information statement have been derived from the combined financial statements and accounting records of Noble and include allocations for direct costs and indirect costs attributable to the operations of the standard specification drilling business of Noble. These combined financial statements do not purport to reflect what the results of operations, comprehensive income, financial position, equity or cash flows would have been had we operated as a standalone public company during the periods presented. For a detailed description of the basis of presentation and an understanding of the limitations of the predictive value of the historical combined financial statements, please read Note 1 in our Predecessor’s combined financial statements included elsewhere in this information statement.

Our Predecessor’s historical combined financial statements may also not be reflective of what our results of operations, comprehensive income, financial position, equity or cash flows might be in the future as a standalone public company as a result of the matters discussed below:

The historical financial and operating results of our Predecessor include two standard specification jackups and one standard specification semisubmersible that will not be transferred to us. The historical financial and operating results of our Predecessor also include the results associated with one standard specification jackup, Noble Lewis Dugger, which Noble sold in July 2013 and two cold stacked submersibles, the Noble Joe Alford and the Noble Lester Pettus, which Noble sold in January 2014.

Our Predecessor’s historical combined financial statements include expense allocations for certain support functions that were provided on a centralized basis within Noble, including, but not limited to, general corporate expenses related to communications, corporate administration, finance, legal, information technology, human

resources, compliance, and employee benefits and incentives. These allocated costs are not necessarily indicative of the costs that we may incur in the future as a standalone public company. Following the spin-off, Noble will continue to provide us with some of the services related to these functions on a transitional basis pursuant to a transition services agreement relating to our business, and we expect to incur other costs to replace the services and resources that will not be provided by Noble. Please read “Certain Relationships and Related Party Transactions—Transition Services Agreements” for additional information on such transition services agreement.

During the period that Noble will provide services to us pursuant to such transition services agreement, we expect to incur higher costs for certain services than the allocated costs included in our Predecessor’s historical combined financial statements as we will incur additional expenses to continue staffing our organization to perform such functions internally in addition to the amounts we will pay Noble for such services.

During the periods presented in the historical combined financial statements of our Predecessor, most of our employees were eligible to participate in various Noble benefit programs. Our Predecessor’s historical combined financial statements include an allocation of the costs of such employee benefit plans. These costs were allocated based on our employee population for each of the periods presented. The allocated costs included in our Predecessor’s historical combined financial statements could differ from amounts that would have been incurred by us if we operated on a stand-alone basis and are not necessarily indicative of costs to be incurred in the future.

We expect to institute competitive compensation policies and programs as a standalone public company, the expense for which may differ from the compensation expense allocated by Noble in our Predecessor’s historical combined financial statements. Please read “Executive Compensation” for a detailed description of our current compensation policies as an indirect, wholly-owned subsidiary of Noble and anticipated compensation policies following the spin-off.

As a result of the spin-off, we will become subject to the reporting requirements of the Exchange Act and the Sarbanes-Oxley Act. We will be required to establish procedures and practices as a standalone public company in order to comply with our obligations under those laws and the related rules and regulations. As a result, we expect to incur approximately $8 million of additional costs annually, for functions including external and internal audit, investor relations, share administration and regulatory compliance. The amount of these expenses will exceed the amount historically allocated to us from Noble for these types of expenses.

The operations of our business have been included in the consolidated U.S. federal income tax return and certain foreign income tax returns of Noble. The income tax provisions and related deferred tax assets and liabilities that have been reflected in our Predecessor’s historical combined financial statements have been computed as if we were a separate taxpayer using the “separate return” method. These amounts are not necessarily indicative of what our income tax provisions and related deferred tax assets and liabilities will be in the future following the completion of the spin-off. We intend to enter into a tax sharing agreement with Noble on or before the completion of the spin-off that will govern the parties’ respective rights, responsibilities and obligations with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and other matters regarding taxes.

Our effective tax rate may be greater than Noble’s historical effective tax rate. Government proposals in the U.K. could restrict deductions on certain related party transactions, such as those relating to the bareboat charter agreements used in connection with our U.K. continental shelf operations. If implemented, the proposals are

expected to become effective retroactively to April 2014 and would result in an increase in the effective tax rate on our consolidated operations. Please read “Risk Factors—Risks Related to Our Business—Government proposals in the U.K. would increase our effective tax rate and other possible changes in tax laws could adversely affect us and our shareholders.”

For the impact of certain of these anticipated differences, please read “Unaudited Pro Forma Combined Financial Statements.” For additional information regarding the agreements that we will enter into with Noble to provide a framework for our ongoing relationship, please read “Certain Relationships and Related Party Transactions.”

The assets of our Predecessor’s fleet of standard specification offshore drilling rigs consists of 37 jackups, five drillships, four semisubmersibles and two submersibles. The business and assets of our Predecessor also include one FPSO that is currently cold stacked and the provision of drilling and maintenance services (but not a rig) on the Hibernia Project in the Canadian Atlantic, under a five-year contract with a joint venture in which Exxon is the primary operator.

The short-term business environment for offshore drillers during the first three months of 2014 has been challenging. While the price of Brent crude oil, a key factor in determining customer activity levels, remained generally steady throughout the period, there has been a decrease in contractual activity. The decrease in activity has focused particularly on deep and ultradeepwater floating rigs, including standard-spec floating rigs, as operators evaluate development costs. Many analysts project a decrease in the rate of global offshore exploration and development spending relative to previous years. In addition, supply has increased due to a significant number of newbuild units that are forecast to enter the market over the next 12 months. The jackup segment remains relatively robust. Nevertheless, a significant number of jackup newbuilds will enter the market over the next 18 months and could negatively impact the contracting environment. While we believe the short-term outlook has downside risks, we continue to have confidence in the long-term fundamentals for the industry. These fundamental factors include stable crude oil prices, strong exploration results, geographic expansion of deepwater drilling activities, a growing backlog of multi-year field development programs and greater access by our customers to promising offshore regions, as evidenced by the Australian government releasing 30 oil and gas blocks for bidding and energy reform legislation in Mexico that could potentially lead to an increase in drilling activity in Mexican waters.

During the recent period of high utilization and high dayrates, industry participants have increased the supply of drilling rigs by building new drilling rigs. Historically, this has often resulted in an oversupply of drilling rigs and has caused a subsequent decline in utilization and dayrates when new drilling rigs have entered the market, which has sometimes continued for extended periods of time. The increase in supply created by the number and types of rigs being built, as well as changes in our competitors’ drilling rig fleets, could intensify price competition and require higher capital investment to keep our rigs competitive. Please read “Risk Factors—Risks Related to Our Business—An over-supply of jackup rigs may lead to a reduction in dayrates and demand for our rigs and therefore may materially impact our profitability.”

We maintain a backlog (as defined below) of commitments for contract drilling services. The following table sets forth as of March 31, 2014 the amount of our pro forma contract drilling services backlog and the percent of available operating days committed for the periods indicated:

Our pro forma contract drilling services backlog reported above reflects estimated future revenues attributable to both signed drilling contracts and letters of intent that we expect to realize. A letter of intent is generally subject to customary conditions, including the execution of a definitive drilling contract. It is possible that some customers that have entered into letters of intent will not enter into signed drilling contracts. As of March 31, 2014, our pro forma contract drilling services backlog did not include any letters of intent.

We calculate backlog for any given rig and period by multiplying the full contractual operating dayrate for such unit by the number of days remaining in the contract term during the relevant period. The reported contract drilling services backlog does not include amounts representing revenues for mobilization, demobilization and contract preparation, which are not expected to be significant to our contract drilling services revenues, amounts constituting reimbursables from customers or amounts attributable to uncommitted option periods under drilling contracts.

The amount of actual revenues earned and the actual periods during which revenues are earned may be materially different than the pro forma backlog amounts and pro forma backlog periods set forth in the table above due to various factors, including, but not limited to, shipyard and maintenance projects, unplanned downtime, achievement of bonuses, weather conditions and other factors that result in applicable dayrates lower than the full contractual operating dayrate. Amounts included in the pro forma backlog may change because drilling contracts may be varied or modified by mutual consent or customers may exercise early termination rights contained in some of our drilling contracts or decline to enter into a drilling contract after executing a letter of intent. As a result, our pro forma backlog as of any particular date may not be indicative of our actual

operating results for the periods for which the backlog is calculated. In addition, we generally do not expect to recontract our floaters, which accounted for 48% of our backlog at March 31, 2014, until late in their contract terms. Due to the higher dayrates earned by our floaters, until these rigs are recontracted, our total pro forma backlog may decline. Please read “Risk Factors—Risks Related to Our Business—We can provide no assurance that our current backlog of contract drilling revenue will be ultimately realized.”

As part of Noble, our Predecessor has not operated on a standalone basis. When we use the terms “we” or “our” in the following discussion, we are referring to the historical operations of our Predecessor.

The following table sets forth the average rig utilization, operating days and average dayrates for our rig fleet for the three months ended March 31, 2014 (“current period”) and 2013 ( “comparable period”):

The following table sets forth the operating results for our contract drilling services for the three months ended March 31, 2014 and 2013 (in thousands):

Operating Revenues. Changes in contract drilling services revenues for the current period as compared to the comparable period were driven by an increase in average dayrates and partially offset by a decrease in operating days. The 23 percent increase in average dayrates increased revenues by approximately $92 million, while the 8 percent decrease in operating days decreased revenue by $33 million.

The increase in contract drilling services revenues was due to a $54 million increase in revenues from our floaters and a $5 million increase in revenues from our jackups.

The increase in floater revenues in the current period was driven by a 23 percent increase in average dayrates coupled with a 14 percent increase in operating days which resulted in a $35 million and a $19 million increase in revenues, respectively, from the comparable period. The increase in both average dayrates and operating days was the result of the Noble Roger Eason returning to full operations during the current quarter, after receiving a reduced rate while in the shipyard to undergo its reliability upgrade project during the comparable quarter, coupled with the Noble Driller which received a higher dayrate after starting a new contract.

The 15 percent increase in jackup average dayrates resulted in a $40 million increase in revenues, which was offset by a 12 percent decrease in operating days, resulting in a $35 million decrease in revenues from the comparable period. The increase in average dayrates resulted from improved market conditions in the global shallow water market. The decrease in operating days was driven by the Noble Gus Androes and Noble Charlie Yester, which were off contract in the current quarter but experienced full utilization during the comparable quarter, coupled with increased shipyard time on the Noble Percy Johns and Noble John Sandifer during the current quarter. Additionally, the Noble Lewis Dugger, which was sold in July 2013, was fully utilized during the comparable quarter.

Contract drilling services operating costs and expenses increased $2 million for the current period as compared to the comparable period. The increase from period to period relates to $2 million increase in mobilization due to the amortization of certain rig moves.

The increase in depreciation and amortization in the current period over the comparable period was primarily attributable to the completion of the Noble Roger Eason shipyard upgrade which was completed during the fourth quarter of 2013.

The following table sets forth the operating results for our other services for the three months ended March 31, 2014 and 2013 (in thousands):

Operating Revenues and Costs and Expenses. Both operating revenue and operating costs and expenses remained substantially consistent from period to period. The change in operating costs and expenses primarily related to foreign currency exchange fluctuations coupled with an increase in labor costs during the current period.

The following table sets forth the average rig utilization, operating days and average dayrates for our rig fleet for the years ended December 31, 2013 (which we sometimes refer to as the “current period”) and 2012 (which we sometimes refer to as the “comparable period”):

The following table sets forth the operating results for our contract drilling services for the years ended December 31, 2013 and 2012 (in thousands):

Operating Revenues. Changes in contract drilling services revenues for the current period as compared to the comparable period were driven by increases in both operating days and average dayrates. The 14 percent increase in average dayrates increased revenues by approximately $227 million while the 9 percent increase in operating days increased revenue by $132 million.

The increase in contract drilling services revenues was due to a $271 million increase in revenues from our jackups and a $88 million increase in revenues from our floaters.

The 17 percent increase in jackup average dayrates resulted in a $179 million increase in revenues, which was coupled with a 10 percent increase in operating days, resulting in a $92 million increase in revenues from 2012. The increase in average dayrates resulted from improved market conditions in the global shallow water market. The increase in utilization primarily related to certain jackup rigs in Mexico and the Middle East, which experienced a full period of operations in 2013 after being warm stacked for a portion of 2012.

The increase in floater revenues in the current period was driven by an 11 percent increase in average dayrates coupled with a seven percent increase in operating days which resulted in a $54 million and a $34 million increase in revenues, respectively, from 2012. The Noble Duchess and the Noble Leo Segerius had a full period of operations during the current period after being off contract during the comparable period. These increases during the current period were partially offset by a decrease in revenues attributable to the Noble Roger Eason, which returned to work during the fourth quarter of 2013 after being in the shipyard for the majority of the year completing a major upgrade.

Operating Costs and Expenses. Contract drilling services operating costs and expenses increased $40 million for the current period as compared to the comparable period. The increase from period to period is primarily a function of improvements in utilization for rigs returning to work in the comparable period. Increases were reflected in most expense categories, with the largest increases in agency fees, primarily in Mexico and the Middle East ($5 million), and charges for rental equipment ($5 million). Additionally, we recognized an increase in cost allocations to us by Noble for shorebase and operations support primarily due to salary increases ($33 million).

The increase in depreciation and amortization in the current period over the comparable period was primarily attributable to a full period of depreciation after shipyard projects on the Noble Leo Segerius, Noble Duchess and Noble Phoenix, which were placed in service during the latter part of 2012 coupled with the completion of the Noble Roger Eason major upgrade during the fourth quarter of 2013.

Loss on impairment during the current period related to an impairment charge of approximately $40 million on the FPSO, Noble Seillean, recognized during our annual asset impairment test, coupled with a $4 million impairment recorded in the third quarter of 2013 on two submersibles arising from the potential disposition of these assets to an unrelated third party. In January 2014, we completed the sale of these submersibles for a total sales price of $7 million.

Gain on disposal of assets, net, during the current period was attributable to the sale of the Noble Lewis Dugger to an unrelated third party in Mexico.

Gain on contract settlements/extinguishments, net, during the current period was attributable to the settlement of all claims against the former shareholders of FDR Holdings, Limited, which Noble acquired in July 2010, relating to alleged breaches of various representations and warranties contained in the purchase agreement. During the comparable period, we received $5 million from a claims settlement on the Noble David Tinsley, which experienced a “punch-through” while being positioned on location in 2009.

The following table sets forth the operating results for our other services for the years ended December 31, 2013 and 2012 (in thousands):

Operating Revenues and Costs and Expenses. Both operating revenue and operating costs and expenses remained substantially consistent from period to period. The change in operating costs and expenses primarily related to foreign currency exchange fluctuations during the period coupled with an increase in labor costs during the period.

Income Tax Provision. Our income tax provision increased $37 million in the current period primarily as a result of higher pre-tax income, partially offset by a lower effective tax rate during the current period. The increase in pre-tax earnings generated a $75 million increase in tax expense while the decrease in the income tax rate during the current period decreased the income tax provision by $38 million. The decrease in the income tax rate was a result of a change in our geographic revenue mix and favorable discrete events that occurred during 2013.

The following table sets forth the average utilization, operating days and average dayrates for our fleet for the years ended December 31, 2012 and 2011:

The following table sets forth the operating results for our contract drilling services for the years ended December 31, 2012 and 2011 (in thousands):

Operating Revenues. Changes in contract drilling services revenues for 2012 as compared to 2011 were driven by increases in both average dayrates and operating days. The 7 percent increase in average dayrates increased revenues by approximately $92 million while the 5 percent increase in operating days increased revenues by an additional $65 million.

The change in contract drilling services revenues was due to a $146 million increase in revenues from our jackups and an $11 million increase in revenues from our floaters.

The 11 percent increase in jackup average dayrates increased revenues by $97 million, and the 6 percent increase in jackup operating days increased revenues by $49 million in 2012 as compared to 2011. The increase in average dayrates resulted from improved market conditions in the global shallow water market throughout the jackup fleet. The increase in utilization primarily related to rigs in Mexico, West Africa and the Middle East, which experienced less downtime during 2012 as compared to 2011.

The $11 million increase in floater revenues in 2012 was driven by slight increases in both average dayrates and operating days. These improvements were partially offset by declines in revenues on the Noble Phoenix, which was substituted for the Noble Muravlenko in Brazil during 2012, and a reduced rate on the Noble Roger Eason while it was in the shipyard for its upgrade during the latter part of 2012.

Operating Costs and Expenses. Contract drilling services operating costs and expenses increased $98 million for 2012 as compared to 2011. The increase from 2011 relates to a $40 million increase in labor due to salary increases and rigs returning to work, a $18 million increase in costs allocations due to shorebased salary increases, a $16 million increase in repairs and maintenance primarily for rigs returning to contract, a $10 million increase in safety and training costs, a $9 million increase in mobilization and transportation costs and a $5 million increase in insurance and other costs.

Depreciation and amortization increased $20 million in 2012 over 2011, which is primarily attributable to assets placed in service during 2012, including the Noble Leo Segerius, Noble Duchess and the Noble Phoenix.

Loss on impairment during 2011 related to a $13 million impairment charge on our submersible fleet, primarily as a result of the declining market outlook for drilling services for this rig type.

Gain on contract settlements/extinguishments, net, during 2012 was attributable to our receipt of $5 million from a claims settlement on the Noble David Tinsley, which experienced a “punch-through” while being positioned on location in 2009. During 2011, we reached an agreement with Petrobras to substitute the Noble Phoenix for the Noble Muravlenko. In connection with the cancellation of the contract on the Noble Phoenix, we recognized a non-cash gain of $53 million, which represented the unamortized fair value of the in-place contract at acquisition. As a result of the substitution, we reached a decision not to proceed with the previously announced upgrade to the Noble Muravlenko that was scheduled to take place in 2013, and therefore, incurred a non-cash charge of $33 million in 2011 related to the termination of outstanding shipyard contracts.

The following table sets forth the operating results for our other services for the years ended December 31, 2012 and 2011 (in thousands):

Operating Revenues and Costs and Expenses. The decrease in both operating revenues and operating costs and expenses in 2012 as compared to 2011 primarily related to foreign currency fluctuations resulting from our Canadian operations.

Income Tax Provision. Our income tax provision increased $19 million in 2012 as compared to 2011, primarily as a result of higher pre-tax income coupled with a higher effective tax rate during 2012. The increase in the tax rate generated a $10 million increase in tax expense, while an increase in pre-tax earnings increased the income tax provision by $9 million. The increase in the income tax rate was a result of a change in our geographic revenue mix during 2012.

In connection with the Transactions, we intend to enter into certain debt agreements that will contain customary covenants relating to, among other things, the incurrence of additional indebtedness, dividends and other restricted payments and mergers, consolidations or the sale of substantially all of our assets.

We expect our primary sources of liquidity in the future will be cash generated from operations, any revolving credit facility and future financing arrangements, if necessary. Our principal uses of liquidity will be to fund our working capital and capital expenditures, including major projects, upgrades and replacements to drilling equipment, to service our outstanding indebtedness and to pay out future dividends. Our working capital and capital expenditure requirements have historically been part of the corporate-wide cash management program for Noble. As part of such program, Noble sweeps all available cash from our operating accounts periodically and intends to continue this process until June 30, 2014. Noble will calculate our working capital balance on a stand-alone basis as of June 30, 2014. To the extent our working capital is above or below a certain of $ million to $ million, Noble will either transfer cash to us (if our working capital is below such range) or we will increase the amount of our intercompany indebtedness to Noble (if our working capital is above such range). After June 30, 2014, we will be solely responsible for the provision of funds to finance our working capital and other cash requirements. We believe our liquidity will be sufficient to fund our operations for at least the next 12 months. Our ability to continue to fund these items may be affected by general economic, competitive and other factors, many of which are outside of our control. If our future cash flows from operations and other capital resources are insufficient to fund our liquidity needs, we may be forced to reduce or delay our capital expenditures, sell assets, refrain from paying or reduce the amount of any dividends, obtain additional debt or equity or refinance all or a portion of our debt.

The table below sets forth our Predecessor’s summary cash flow and capital expenditure information for the years ended December 31, 2013, 2012 and 2011 and for the three months ended March 31, 2014 and 2013 (in thousands):

Changes in cash flows from operating activities from period to period are primarily driven by changes in net income. Changes in cash flows from investing activities are dependent upon our Predecessor’s level of capital expenditures which vary based on the timing of projects, while changes in cash flows from financing activities from period to period are based on activity under Noble’s commercial paper program and credit facilities and investments to and from Parent.

Our currently anticipated cash flow needs following the spin-off may include the following:

We currently expect to fund these cash flow needs with cash generated by our operations, cash on hand, borrowings under potential new credit facilities, issuances of long-term debt, or asset sales.

For a discussion of our cash and cash equivalents on a pro forma basis as of December 31, 2013 and March 31, 2014 giving effect to the Transactions, please read “Unaudited Pro Forma Combined Financial Statements.”

Our primary use of available liquidity during 2014 has been for capital expenditures. Capital expenditures, including maintenance, rig reactivations, major projects and upgrades to our fleet, totaled $43 million during the current period and $101 million during the comparable period.

Our combined financial statements are impacted by the accounting policies used and the estimates and assumptions made by management during their preparation. Critical accounting policies and estimates that most significantly impact our combined financial statements are described below.

Property and equipment is stated at cost, reduced by provisions to recognize economic impairment in value whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. Major replacements and improvements are capitalized. When assets are sold, retired or otherwise disposed of, the cost and related accumulated depreciation are eliminated from the accounts and the gain or loss is recognized. Drilling equipment and facilities are depreciated using the straight-line method over their estimated useful lives as of the date placed in service or date of major refurbishment. Estimated useful lives of our drilling equipment range from three to thirty years. Other property and equipment is depreciated using the straight-line method over useful lives ranging from two to twenty-five years.

Scheduled maintenance of equipment is performed based on the number of hours operated in accordance with our preventative maintenance program. Routine repair and maintenance costs are charged to expense as incurred; however, the costs of the overhauls and asset replacement projects that benefit future periods and which typically occur every three to five years are capitalized when incurred and depreciated over an equivalent period. These overhauls and asset replacement projects are included in “Property and equipment, at cost” in our Predecessor’s combined balance sheets. Such amounts, net of accumulated depreciation, totaled $204 million at March 31, 2014 and $211 million and $160 million at December 31, 2013 and 2012, respectively. Depreciation expense related to overhauls and asset replacement totaled $22 million for the three months ended March 31, 2014 and $76 million, $66 million and $64 million for the years ended December 31, 2013, 2012 and 2011, respectively.

We evaluate the realization of property and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In addition, on an annual basis, we complete an impairment analysis on all of our rigs. An impairment loss on our property and equipment exists when the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Any impairment loss recognized represents the excess of the assets carrying value over the estimated fair value. As part of this analysis, we make assumptions and estimates regarding future market conditions. To the extent actual result do not meet our estimated assumptions we may take an impairment loss in the future.

Our typical dayrate drilling contracts require our performance of a variety of services for a specified period of time. We determine progress towards completion of the contract by measuring efforts expended and the cost of services required to perform under a drilling contract, as the basis for our revenue recognition. Revenues generated from our dayrate-basis drilling contracts and labor contracts are recognized on a per day basis as services are performed and begin upon the contract commencement, as defined under the specified drilling or labor contract. Dayrate revenues are typically earned, and contract drilling expenses are typically incurred ratably over the term of our drilling contracts. We review and monitor our performance under our drilling contracts to confirm the basis for our revenue recognition. Revenues from bonuses are recognized when earned.

It is typical, in our dayrate drilling contracts, to receive compensation and incur costs for mobilization, equipment modification or other activities prior to the commencement of a contract. Any such compensation may be paid through a lump-sum payment or other daily compensation. Pre-contract compensation and costs are deferred until the contract commences. The deferred pre-contract compensation and costs are amortized, using the straight-line method, into income over the term of the initial contract period, regardless of the activity taking place. This approach is consistent with the economics for which the parties have contracted. Once a contract commences, we may conduct various activities, including drilling and well bore related activities, rig maintenance and equipment installation, movement between well locations or other activities.

Deferred revenues from drilling contracts totaled $21 million at March 31, 2014 and $22 million and $25 million at December 31, 2013 and 2012, respectively. Such amounts are included in either “Other current liabilities” or “Other liabilities” in our Predecessor’s combined balance sheets, based upon our expected time of recognition. Related expenses deferred under drilling contracts totaled $18 million at March 31, 2014 and $24 million at December 31, 2013 as compared to $38 million at December 31, 2012, and are included in either “Other current assets” or “Other assets” in our Predecessor’s combined balance sheets based upon our expected time of recognition.

We record reimbursements from customers for “out-of-pocket” expenses as revenues and the related direct cost as operating expenses.

Income taxes are prepared on a separate return basis as if we had been a standalone company. As a result, actual tax transactions that would not have occurred had we been a separate entity have been eliminated in the preparation of our Predecessor’s historical combined financial statements included elsewhere in this information statement.

Income taxes are based on the laws and rates in effect in the countries in which operations are conducted or in which we or our subsidiaries are considered resident for income tax purposes. Applicable income and withholding taxes have not been provided on undistributed earnings of our subsidiaries. We do not intend to repatriate such undistributed earnings except for distributions upon which incremental income and withholding taxes would not be material. In certain circumstances, we expect that, due to changing demands of the offshore drilling markets and the ability to redeploy our offshore drilling units, certain units will not reside in a location long enough to give rise to future tax consequences. As a result, no deferred tax asset or liability has been recognized in these circumstances. Should our expectations change regarding the length of time an offshore drilling unit will be used in a given location, we will adjust deferred taxes accordingly.

agree with our assessment of the effects of such laws, treaties and regulations, this could have a material adverse effect on us including the imposition of a higher effective tax rate on our worldwide earnings or a reclassification of the tax impact of our significant corporate restructuring transactions.

Income taxes include results of the operations of the standard specification drilling units. In instances where the operations of standard specification drilling units were included in the filing of a consolidated or combined return with high specification units, an allocation of income taxes has been made.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Certain accounting policies involve judgments and uncertainties to such an extent that there is reasonable likelihood that materially different amounts could have been reported under different conditions, or if different assumptions had been used. We evaluate our estimates and assumptions on a regular basis. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates and assumptions used in preparation of our combined financial statements included elsewhere in this information statement.

In April 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-08, which amends FASB Accounting Standards Codification (“ASC”) Topic 205, “Presentation of Financial Statements” and ASC Topic 360, “Property, Plant, and Equipment.” This ASU alters the definition of a discontinued operation to cover only asset disposals that are a strategic shift with a major effect on an entity’s operations and finances, and calls for more extensive disclosures about a discontinued operation’s assets, liabilities, income and expenses. The guidance is effective for all disposals, or classifications as held-for-sale, of components of an entity that occur within annual periods beginning on or after December 15, 2014. We are still evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures.

Market risk is the potential for loss due to a change in the value of a financial instrument as a result of fluctuations in interest rates, currency exchange rates or equity prices, as further described below.

Following the completion of the Transactions, a portion of our long-term debt portfolio will contain variable rate debt instruments.

For variable rate debt, interest rate changes generally do not affect the fair market value of such debt, but do impact future earnings and cash flows, assuming other factors are held constant. Our pro forma interest expense for the three months ended March 31, 2014 after giving effect to the Transactions would have been $ . Holding other variables constant (such as foreign exchange rates and debt levels), a 1% point change in interest rates would have increased our pro forma interest expense for such period by approximately $ .

Although we are a U.K. corporation, we define foreign currency as any non-U.S. denominated currency. Our functional currency is primarily the U.S. dollar, which is consistent with the oil and gas industry. However, outside the U.S., some of our expenses are incurred in local currencies. Therefore, when the U.S. dollar weakens (strengthens) in relation to the currencies of the countries in which we operate, our expenses reported in U.S. dollars will increase (decrease).

We are exposed to risks on future cash flows to the extent that local currency expenses exceed revenues denominated in local currency that are other than the functional currency. To help manage this potential risk, we may enter into derivative instruments to manage our exposure to fluctuations in currency exchange rates, and we may conduct hedging activities in future periods to mitigate such exposure.

The offshore contract drilling industry provides drilling, workover and well construction services to oil and gas E&P companies using mobile barges, jackup rigs, semisubmersible rigs, drillships and related equipment and work crews. The type of drilling unit utilized typically depends primarily on the water depth of the well and the depth of the well to be drilled. Generally, wells in shallow water tend to be serviced by jackups, while midwater, deepwater and ultra-deepwater wells tend to be serviced by semisubmersibles and drillships. We generally consider shallow water depths to be water depths of less than 1,000 feet, midwater depths to be water depths of 1,000 to 4,000 feet, deepwater depths to be water depths of 4,001 to 7,499 feet and ultra-deepwater depths to be water depths of 7,500 feet and greater.

Drilling services are marketed worldwide, as drilling rigs can move on a self-propelled basis or be towed from one region to another. In some cases, the cost of relocating a rig may result in significant short-term variations in regional supply and demand, but these variations are typically short-lived in comparison to contract duration and are generally less significant for jackups. Additionally, offshore drilling contractors typically operate their rigs under term contracts received either by submitting proposals in competition with other contractors or by direct negotiations with operating companies. These contracts typically range in duration from several months to several years. The rate of compensation specified in each contract depends on the number of available rigs capable of performing the work, the nature of the operations to be performed, the duration of the work, the amount and type of equipment and services provided, the geographic areas involved, market conditions and other variables. Generally, contracts specify daily rates of compensation, which are determined based on operational and other factors.

Jackup rigs are mobile, bottom-supported, self-elevating drilling platforms that stand on three or four legs on the seabed. When a jackup rig moves from one location to another, it lowers its platform down on the water until it floats, and is towed by a supply vessel or similar watercraft to its next location, where it lowers its legs to the sea bottom and elevates its platform above sea level. Most jackup rigs, including all of the jackup rigs owned by us, are ILC. This means they have the ability to move their drill floors aft of their own hulls (cantilever), so that multiple wells can be drilled at open water locations or over wellhead platforms without re-positioning the rig and have the ability to move each leg independently. Other jackup designs include mat-slot, mat-cantilever and independent-slot designs.

Drillships are ships with on-board propulsion machinery, often constructed for drilling in deepwater and ultra-deepwater. They are based on conventional ship hulls, but have certain modifications. Drilling operations are conducted through openings in the hull, or “moon pools.” Drillships normally have a higher load capacity, which is the ability to carry materials, than semisubmersible rigs and are well suited to offshore drilling in remote areas due to their mobility and high load capacity. Like semisubmersible rigs, drillships can be equipped with a conventional mooring system or a computerized dynamic positioning system, or DP system, which automatically maintains a vessel’s position and heading by using the DP system’s thrusters.

Semisubmersible rigs are floating platforms with columns and pontoons featuring a ballasting system, which allows these rigs to be submerged to a predetermined depth so that a substantial portion of the hull is below the water surface during drilling operations. Semisubmersible rigs maintain their position above the wellhead either by means of a conventional mooring system, consisting of anchors and chains or cables, or by a DP system.

Semisubmersible rigs may range from having no propulsion capability or propulsion assistance (thereby requiring the use of a supply vessel or similar watercraft for towing the rig between locations) to being self-propelled, in which case the rig has the ability to relocate independently of a towing vessel.

The performance of the contract drilling sector is largely determined by supply and demand for available drilling rigs. Key drivers of demand are oil and gas prices and consumption, which in turn drive E&P spending. Spending by national oil companies is determined by national budgets with the aim of achieving government-established production targets and other goals. National oil companies tend to maintain consistent levels of drilling activities in both high and low oil and gas price environments. International and independent oil and gas companies seek to generate shareholder returns through exploration and development drilling activities while also growing reserves and production.

Current oil prices are high relative to historical levels and have rebounded from their recent lows reached during the economic downturn of 2009. Generally, E&P capital spending is higher when oil prices are high due to implied higher expected returns of various projects. The chart below illustrates historical spot prices for WTI and Brent oil through February 2014 and NYMEX futures prices through 2017, as published by Bloomberg on February 28, 2014.

In spite of an oil price environment that is robust by historical standards, the U.S. Energy Information Administration, or EIA, expects that worldwide demand for oil will continue to grow due to global economic growth. According to the EIA’s International Energy Outlook 2013 (as of July 13, 2013), worldwide use of petroleum and other liquid fuels is expected to grow from 87 million barrels per day in 2010 to 97 million barrels per day in 2020 to 115 million barrels per day in 2040, a cumulative increase of 32%. According to the EIA, a key driver of supply will be the exploration and development of new and existing reserves.

According to data provided by Cowen and Company in December 2013 and January 2014, global E&P capital spending (onshore and offshore) increased from approximately $328 billion in 2003 to over $660 billion in 2013. Cowen and Company’s January 2014 “Original E&P Spending Survey” of 466 oil and gas companies estimated global E&P spending to grow by 4.0% in 2014, and 80% of respondents expect their offshore spending to be the same or increase in 2014 relative to 2013. Furthermore, in a December 2013 forecast, Infield predicts that global offshore E&P spending between 2013 and 2017 in water depths of less than 4,900 feet will total more than $400 billion, representing approximately 74% of the global offshore E&P capital spending. We believe we will generally be beneficiaries of the ongoing and potentially increasing activity offshore.

Jackup, semisubmersible and drillship supply is undergoing a newbuild cycle, as has the whole oil field services industry. According to RigLogix, as of April 19, 2014, there were 123 jackups rigs and 96 floaters on order or currently under construction. While a limited number of the newbuild jackups are designed or destined for niche markets or applications, such as drilling high pressure and high temperature wells, drilling in harsh environments or operating in closed or protected markets such as China and Iran, many will compete directly with our rigs. Newbuild floaters, while designed for deeper waters and harsher environments, are being put to work in all areas, including those areas that would traditionally be serviced by standard specification rigs.

Offsetting the increase in supply from newbuilds is an expected continuation of historical attrition of the fleet as rigs become older. According to RigLogix as of April 19, 2014, approximately 59% of currently working jackups and approximately 46% of currently working floaters are older than 15 years old. We define “working” to mean rigs that are not cold stacked and are not planned or under construction. We believe our ongoing investment in our fleet has extended the useful life of our rigs.

The global offshore drilling industry is very competitive, with no single contractor having a dominant market share. In winning new contracts, price competition is generally the most important factor. Other factors include rig availability, rig operating features, customer relationships, workforce experience, operating efficiency, condition of equipment, safety record and reputation. Depending on market conditions and the needs of individual customers, these other factors are sometimes more important considerations than price. Supply and demand are the two most important aspects driving drilling contracts, dayrates, the rate at which rigs work, utilization rates and the percentage of time rigs are working. The following discussion focuses on non-U.S. standard specification ILC jackups and floaters initially placed in service prior to January 1, 1999.

Historically, the non-U.S. standard specification jackup and floater fleet has been able to maintain relatively high utilization rates despite changing global markets. According to RigLogix, from January 2003 through April 2014, standard specification jackup rigs with capabilities in depths of less than 300 feet had rig-by-rig utilization rates greater than 62%, while utilization for rigs capable of operating between 300 feet and 390 feet exceeded 63%. RigLogix defines rig-by-rig utilization as the number of rigs contracted divided by the total number of rigs, not including cold stacked rigs. Utilization rates have generally increased since mid-2011 and averaged approximately 79% in April 2014 for rigs with capabilities in depths of less than 300 feet and 83% for rigs between 300 and 390 feet. According to RigLogix, from January 2003 through April 2014, non-U.S. standard specification floaters with capabilities up to 4,000 feet had utilization rates greater than 64% and rigs with capabilities from 4,001 feet to 7,499 feet had utilization rates greater than 62%. Utilizations for these two classes of floaters in April 2014 averaged 78% and 65% respectively.

The graphs below demonstrate the historical non-U.S. standard specification ILC jackup and floater utilization rates from January 2003 through April 2014, based on data provided by RigLogix.

Dayrates depend on multiple factors, including, but not limited to, the country and region of operation, water depth, rig capabilities, technical specifications, contract length, overall contract terms and the utilization rate of the fleet or fleet category (the number of rigs under contract as a percentage of the total available fleet or fleet category). Among standard jackups over 15 years old, a key distinction in rig design is whether a jackup is supported by independent legs or has a lowered hull referred to as a “mat” attached to the lower portion of the legs. All of our jackups are ILC jackups. ILC jackups have historically commanded higher dayrates than mat supported jackups. For the 12-month period ended April 30, 2014, non-U.S. standard specification ILC jackups received an average premium of 27% compared to mat supported jackups over 15 years old, with average dayrates of approximately $109,000 compared with mat supported jackups which averaged dayrates of approximately $86,000. ILC jackups have demonstrated these robust spreads relative to mat supported jackups throughout market cycles, as illustrated in the graph below.

Midwater and deepwater floaters able to operate in water depths of less than 7,500 feet have seen a steady increase in dayrates, with minimal disruption during the global recession, and are experiencing historically strong dayrates. Dayrates for non-U.S. standard specification floaters capable of operating in water depths of less than or equal to 4,000 feet have increased 27% since January 2008 to approximately $314,000 per day while dayrates for floaters capable of operating in water depths between 4,001 and 7,499 feet have increased 56% to approximately $360,000 per day. Nevertheless, new fixtures for both standard specification and high specification floaters have recently come under pressure as a result of a recent reduction in customer spending and the anticipated delivery of more than 90 new floating units.

We are a pure-play global provider of standard specification offshore drilling rigs. Our drilling fleet consists solely of standard specification rigs and includes 34 jackups and eight floaters (five drillships and three semisubmersibles). This focus on a single specification supports our strategy to deliver our services in an efficient and cost-effective manner. Our primary business is to contract our rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for our E&P customers on a dayrate basis around the world.

We believe that the scale of our geographically diverse fleet, well-established customer relationships and multi-year contract backlog position us to take advantage of strong market dynamics in the offshore drilling industry. We operate in significant hydrocarbon-producing geographies throughout the world, including Mexico, Brazil, the North Sea, West Africa, the Middle East, India and Southeast Asia. Our current shallow water, midwater and deepwater operations span 12 countries on five continents and provide services to approximately 17 customers. We have well-established relationships with many of our customers, including Petrobras, Pemex, ONGC, Total, Nexen and Centrica. In addition, in the five-year period ended March 31, 2014, 22 of our rigs have worked an average of approximately 4.6 years for their current customers. As of March 31, 2014, our pro forma contract backlog was over $2.6 billion and included contracts with leading national, international and independent oil and gas companies. Over 75% of our pro forma contract backlog is attributable to customers with investment grade ratings.

We have one of the largest diversified fleets of standard specification offshore drilling rigs in the world. Our jackups provide drilling services in shallow water with capabilities up to a maximum water depth of 390 feet. All of our jackups are ILC, which provides customers greater operational flexibility than some other jackup designs, such as mat-slot, mat-cantilever and independent-slot jackup designs. Seven of our jackups are also capable of operations in harsh environments, which typically command higher dayrates than operations conducted in other environments. Our floaters provide drilling services in midwater and deepwater, with capabilities up to a maximum water depth of 7,200 feet. Noble has actively invested in capital expenditures for maintenance, rig reactivations, major projects and upgrades to our fleet, spending a total of approximately $1.8 billion since January 1, 2010, including approximately $0.9 billion for floater-specific major upgrades that we do not expect to incur again for those rigs. We believe that Noble’s consistent investment in our fleet has allowed us to provide safe, reliable and effective offshore drilling services for our customers and has made our rigs more competitive in the global marketplace.

We believe the following trends in the oil and gas industry will support our contract drilling services business:

Our drilling fleet consists solely of standard specification rigs. We classify all rigs as either “high specification” rigs or “standard specification” rigs. Our rig classification is based on a number of factors, including age, technological capabilities, size, water depth and load capacity. Standard specification rigs are generally 15 or more years old, have a “hook load,” or derrick hoisting capacity, of less than two million pounds, and have drilling equipment operated by mechanical, rather than electronic, means. Standard specification jackups are generally capable of operating in water depths of up to 390 feet. Standard specification drillships and semisubmersibles are generally capable of operating in water depths of up to 7,500 feet, conducting a single drilling procedure (as compared to a dual-activity or other dual-derrick rigs, which may conduct multiple well-related operations simultaneously) and use moorings or a less advanced dynamic positioning system to maintain position while drilling. Standard specification rigs operate in the same worldwide markets and environments as high specification rigs, subject to their technical capabilities. Our rigs are widely deployed in the global offshore drilling rig market. Our rigs feature proven, reliable technology and processes, utilizing mechanical features with lower operating costs compared to newer, higher specification rigs. Within their given water depth capabilities, our rigs are suitable for the majority of our customers’ offshore drilling operations.

Our total fleet comprises 42 standard specification offshore drilling rigs, including 34 jackups, eight floaters (five drillships and three semisubmersibles) and one FPSO. We also provide drilling and maintenance services (but do not provide a rig) on the Hibernia Project in the Canadian Atlantic under a five-year contract with a joint venture in which Exxon is the primary operator.

Jackups are mobile, self-elevating drilling platforms equipped with legs that can be lowered to the ocean floor until a foundation is established for support. All of our jackups are ILC jackups, allowing each leg to be raised or lowered independently of any other, and permitting the drilling platform to be extended out from the hull to perform drilling or workover operations over certain types of preexisting platforms or structures. We believe these design features provide greater operational flexibility and are generally considered more desirable than alternative designs. Our jackups are capable of drilling in water depths of up to 390 feet. Twenty-one of our 34 jackups can operate in water depths of 300 feet or greater. Seven of our jackups are capable of operating in harsh environments.

The following table sets forth certain information concerning our drilling fleet as of May 8, 2014.

Our fleet includes one jackup, one drillship and one semisubmersible that are currently cold stacked and not being marketed and one FPSO that is currently cold stacked. These cold stacked units require minimal operating and maintenance expenditures. Cold stacked units are neither operational nor ready for deployment, do not maintain a crew and are stored in a harbor, shipyard or a designated offshore area.

We believe we have a number of competitive strengths that will allow us to execute our business strategies successfully:

Our principal business objective is to increase shareholder value. We expect to achieve this objective through the following strategies:

We typically employ each drilling unit under an individual contract. Although the final terms of the contracts result from negotiations with our customers, many contracts are awarded based upon a competitive bidding process. Our drilling contracts generally contain the following terms:

The terms of some of our drilling contracts permit early termination of the contract by the customer, without cause, generally exercisable upon advance notice to us and in some cases without requiring an early termination payment to us. Our drilling contracts with Pemex, in Mexico, for example, allow early cancellation with 30 days or less notice to us without Pemex making an early termination payment. Please read “Risk Factors—Risks Related to Our Business—Our inability to renew or replace expiring contracts or the loss of a significant customer or contract could have a material adverse effect on our financial results.”

The terms of some of our drilling contracts permit us to earn bonus revenue incentive payments based on performance. Our drilling contracts with Petrobras, in Brazil, for example, contain these bonus provisions.

As our rigs are mobilized from one geographic location to another, labor and other operating and maintenance costs can vary significantly. If we relocate a rig to another geographic location without a customer contract, we will incur costs that will not be reimbursable by future customers, and even if we relocate a rig with a customer contract, we may not be fully compensated during the mobilization period.

For a discussion of our backlog of commitments for contract drilling services, please read “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Pro Forma Contract Drilling Services Backlog.”

We conduct offshore contract drilling operations, which accounted for over 98% of our pro forma operating revenues for the three months ended March 31, 2014 and the years ended December 31, 2013, 2012 and 2011. We conduct our contract drilling operations principally in Mexico, Brazil, the North Sea, West Africa, the Middle East, India and Southeast Asia. Pro forma revenues from Petrobras and its affiliates accounted for approximately 25% of our total pro forma operating revenues for the three months ended March 31, 2014 and 21%, 20% and 25% of our total pro forma operating revenues for the years ended December 31, 2013, 2012 and 2011, respectively. Pro forma revenues from Pemex and its affiliates accounted for approximately 17% of our total pro forma operating revenues for the three months ended March 31, 2014 and 18%, 22% and 18% of our total pro forma operating revenues for the years ended 2013, 2012 and 2011, respectively. No other single customer accounted for more than 10% of our total pro forma operating revenues for the three months ended March 31, 2014 or the years ended December 31, 2013, 2012 or 2011.

We provide drilling and maintenance services (but do not provide a rig) on the Hibernia Project in the Canadian Atlantic under a contract with Hibernia Management and Development Company Ltd. that extends through June 30, 2018 and in which Exxon is the primary operator. We do not own or lease these platforms. Under this labor contract, we provide the personnel necessary to manage and perform the drilling operations from the drilling platform owned by the operator.

The offshore contract drilling industry is a highly competitive and cyclical business characterized by high capital and maintenance costs. We compete with other providers of offshore drilling rigs. Some of these providers’ fleets exclusively comprise high specification drilling rigs, or include a combination of standard specification and high specification drilling rigs. In addition, some of our competitors may have access to greater financial resources than we do.

In the provision of contract drilling services, competition involves numerous factors, including price, rig availability and suitability, experience of the workforce, efficiency, safety performance record, condition and age of equipment, location, operating integrity, reputation, industry standing and client relations. We believe that we compete favorably with respect to most of these factors and that price is a key determinative factor. We follow a policy of keeping our equipment well maintained and generally technologically competitive with other standard specification rigs. However, our equipment could be made obsolete by the development of new techniques and equipment, regulations or customer preferences. Please read “Risk Factors—Risks Related to Our Business—The contract drilling industry is a highly competitive and cyclical business. If we are unable to compete successfully, our profitability may be reduced.”

We compete on a worldwide basis, but competition may vary by region at any particular time. Demand for offshore drilling equipment also depends on the exploration and development programs of oil and gas producers, which in turn are influenced by the financial condition of such producers, by general economic conditions, prices of oil and gas and by political considerations and policies.

In addition, industry-wide shortages of supplies, services, skilled personnel and equipment necessary to conduct our business have historically occurred. We cannot assure that any such shortages experienced in the past will not happen again in the future.

Our operations are directly subject to numerous environmental laws and regulations at the international, national, state and local levels. Additionally, political developments and numerous governmental regulations indirectly associated with the contract drilling industry affect many aspects of our operations. These laws and regulations can significantly affect the operation of our drilling rigs. Failure to comply with these laws and regulations, or failure to obtain or comply with permit requirements, may result in the assessment of administrative, civil, or criminal penalties, imposition of remedial requirements, or the imposition of injunctions or moratoria to halt drilling operations or force future compliance. Historically, we have made numerous expenditures to comply with environmental requirements, and we anticipate that we will continue to make expenditures in the future. To date, our expenditures have not materially affected our operations, and we do not anticipate that future expenditures will materially affect our operations or force us to materially increase our capital expenditures.

Because environmental laws and regulations generally affect the energy and energy services industry, our business could be adversely affected by increased regulation that prohibits or restricts our customers’ exploration and production activities, resulting in reduced demand for our services. Similarly, heightened environmental protection requirements could result in increased costs for us, our customers or the energy industry in general. Governments in many of the jurisdictions in which we operate have become increasingly active in regulating and controlling the ownership of concessions and companies holding concessions, the exploration for oil and gas and other aspects of the oil and gas industries in their countries. In some areas of the world, this governmental activity has adversely affected the amount of exploration and development work done by major oil and gas companies and may continue to do so. Operations in less developed countries can be subject to legal systems that are not as mature or predictable as those in more developed countries, which can lead to greater uncertainty in legal matters and proceedings.

The following is a summary of some of the existing laws and regulations which apply to our operations in some of the jurisdictions in which we operate. While laws vary widely between jurisdictions, each of the laws and regulations below addresses environmental issues similar to those in most of the other jurisdictions in which we operate. Further, we believe we are in substantial compliance in all material respects with the environmental regulations affecting the operation of our drilling rigs in all of the jurisdictions in which we operate.

The International Maritime Organization, or IMO, provides international regulations governing shipping and international maritime trade. IMO regulations have been widely adopted by U.N. member countries, and in some jurisdictions in which we operate, these regulations have been expanded upon. The requirements contained in the International Management Code for the Safe Operation of Ships and for Pollution Prevention, or ISM Code, promulgated by the IMO, govern much of our drilling operations. Among other requirements, the ISM Code requires the party with operational control of a vessel to develop an extensive safety management system that includes, among other things, the adoption of a safety and environmental protection policy setting forth instructions and procedures for operating its vessels safely and describing procedures for responding to emergencies.

The IMO has also adopted the International Convention for the Prevention of Pollution from Ships, or MARPOL, including Annex VI to MARPOL which sets limits on sulfur dioxide and nitrogen oxide emissions from ship exhausts and prohibits deliberate emissions of ozone depleting substances. Annex VI, which applies to all ships, fixed and floating drilling rigs and other floating platforms, imposes a global cap on the sulfur content of fuel oil and allows for specialized areas to be established internationally with even more stringent controls on sulfur emissions. For vessels 400 gross tons and greater, platforms and drilling rigs, Annex VI imposes various survey and certification requirements. Moreover, 2008 amendments to Annex VI require the imposition of progressively stricter limitations on sulfur emissions from ships. These limitations require that fuels of vessels in covered Emission Control Areas, or ECAs, contain no more than 1% sulfur. The North American ECA became effective in August 2012, capping the sulfur limit in marine fuel at 1%, which has been the capped amount for the North Sea and Baltic Sea ECAs since July 1, 2010. The North Sea ECA encompasses all of the North Sea and the full length of the English Channel. These capped amounts are to decrease progressively until they reach 0.5% by January 1, 2020 for non-ECA areas and 0.1% by January 1, 2015 for ECA areas, including the North American ECA. The amendments also establish new tiers of stringent nitrogen oxide emissions standards for new marine engines, depending on their date of installation.

The IMO has negotiated international conventions that impose liability for oil pollution in international waters and the territorial waters of the signatory to such conventions such as the Ballast Water Management Convention, or BWM Convention. The BWM Convention’s implementing regulations call for a phased introduction of mandatory ballast water exchange requirements (beginning in 2009), to be replaced in time with a requirement for mandatory ballast water treatment. The BWM Convention will not become effective until 12 months after it has been adopted by 30 states, the combined merchant fleets of which represent not less than 35% of the gross tonnage of the world’s merchant shipping. Though this has not occurred to date, the IMO has passed a resolution encouraging the ratification of the BWM Convention and calling upon those countries that have already ratified to encourage the installation of ballast water management systems on new ships. Under the requirements of the BWM Convention for rigs with ballast water capacity of more than 5000 cubic meters that were constructed in 2011 or before, ballast water management exchange or treatment will be accepted until 2016. From 2016 (or not later than the first intermediate or renewal survey after 2016), only ballast water treatment will be accepted by the BWM Convention. All of our drilling rigs are in substantial compliance with the proposed terms of the BWM Convention.

The IMO has also adopted the International Convention for Civil Liability for Bunker Oil Pollution Damage of 2001, or Bunker Convention. The Bunker Convention provides a liability, compensation and compulsory insurance system for the victims of oil pollution damage caused by spills of bunker oil. Under the Bunker Convention, ship owners must pay compensation for pollution damage (including the cost of preventive measures) caused in the territory, including the territorial sea of a State Party, as well as its exclusive economic zone or equivalent area. Registered owners of any seagoing vessel and seaborne craft over 1,000 gross tons, of any type whatsoever, and registered in a State Party, or entering or leaving a port in the territory of a State Party, must maintain insurance which meets the requirements of the Bunker Convention and to obtain a certificate issued by a State Party attesting that such insurance is in force. The State issued certificate must be carried on board at all times. We believe that all of our drilling rigs are currently compliant in all material respects with these regulations.

On July 15, 2011, the IMO approved mandatory measures to reduce emissions of greenhouse gases from international shipping. The amendments to MARPOL Annex VI Regulations for the prevention of air pollution from ships add a new Chapter 4 on energy efficiency requiring compliance with the Energy Efficiency Design Index, or EEDI, for new ships, and the Ship Energy Efficiency Management Plan, or SEEMP, for all ships. Other amendments to Annex VI add new definitions and requirements for survey and certification, including the format for the International Energy Efficiency Certificate. The regulations apply to all ships of 400 gross tonnage and above and entered into force on January 1, 2013. These new rules will likely affect the operations of vessels that are registered in countries that are signatories to MARPOL Annex VI or vessels that call upon ports located within such countries. The implementation of the EEDI and SEEMP standards could cause us to incur additional compliance costs. The IMO is also considering the development of market-based mechanisms to reduce greenhouse gas emissions from ships.

The IMO continues to review and introduce new regulations. It is impossible to predict what additional regulations, if any, may be passed by the IMO and what effect, if any, such regulation may have on our operations.

On June 10, 2013, the European Union adopted a new directive, Directive 2013/30/EU, on the safety of offshore oil and gas operations within the exclusive economic zone (which can extend up to 200 nautical miles from a coast) or the continental shelf of any of its member states. The directive establishes minimum requirements for preventing major accidents in offshore oil and gas operations, and aims to limit the consequences of such accidents. All European Union member states will be required to adopt national legislation or regulations by July 19, 2015 to implement the new directive’s requirements, which also include reporting requirements related to major safety and environmental hazards that must be satisfied before drilling can take place, as well as the use of “all suitable measures” to both prevent major accidents and limit the human health and environmental consequences of such a major accident should one occur. We believe that our operations are in substantial compliance with the requirements of the directive (as well as the extensive current health and safety regimes implemented in the member states in which we operate), but future developments could require the company to incur significant costs to comply with its implementation.

Countries in the European Union implement the U.N.’s Kyoto Protocol on GHG emissions through the Emissions Trading System, or ETS, though ETS will continue to require GHG reductions in the future that are not currently prescribed by the Kyoto Protocol or related agreements. The ETS program establishes a GHG “cap and trade” system for certain industry sectors, including power generation at some offshore facilities. Total GHG from these sectors is capped, and the cap is reduced over time to achieve a 21% GHG reduction from these sectors between 2005 and 2020. EU proposals for the cap for the 2020 to 2030 period are expected by the end of 2013. More generally, the EU Commission has proposed a roadmap for reducing emissions by 80% by 2050 compared to 1990 levels. Some EU member states have enacted additional and more long-term legally binding targets. For example, the U.K. has committed to reduce greenhouse gas emissions by 80% by 2050. These reduction targets may also be affected by future negotiations under the United Nations Framework Convention on Climate Change and its Kyoto Protocol.

Entities operating under the cap must either reduce their GHG emissions, purchase tradable emissions allowances, or EUAs, from other program participants, or purchase international GHG offset credits generated under the Kyoto Protocol’s Clean Development Mechanisms or Joint Implementation. As the cap declines, prices for emissions allowances or GHG offset credits may rise. However, due to the over-allocation of EUAs by EU member states in earlier phases and the impact of the recession in the EU, there has been a general over-supply of EUAs. The EU has recently approved amending legislation to withhold the auction of EUAs in a process known as “backloading.” EU proposals for wider structural reform of the EU ETS may follow the enactment of the backloading proposal. Both backloading and wider structural reforms are aimed at reviving the EU carbon price.

In addition, the U.K. government, which implements ETS in the U.K. North Sea, has introduced a carbon price floor mechanism to place an incrementally increasing minimum price on carbon. Thus, the cost of compliance with ETS can be expected to increase over time. Additional member state climate change legislation may result in potentially material capital expenditures.

Our operations are subject to many hazards inherent in the drilling business, including blowouts, fires and collisions or groundings of offshore equipment, and damage or loss from adverse weather and sea conditions. These hazards could cause personal injury or loss of life, loss of revenues, pollution and other environmental damage, damage to or destruction of property and equipment and oil and gas producing formations, and could result in claims by employees, customers or third parties.

Our drilling contracts provide for varying levels of indemnification from our customers and in most cases also require us to indemnify our customers for certain losses. Under our drilling contracts, liability with respect to personnel and property is typically assigned on a “knock-for-knock” basis, which means that we and our customers assume liability for our respective personnel and property, irrespective of the fault or negligence of the party indemnified. In addition, our customers may indemnify us in certain instances for damage to our down-hole equipment and, in some cases, our subsea equipment.

Our customers typically assume responsibility for and indemnify us from loss or liability resulting from pollution or contamination, including third-party damages and clean-up and removal, arising from operations under the contract and originating below the surface of the water. We are generally responsible for pollution originating above the surface of the water and emanating from our drilling rigs. Additionally, our customers typically indemnify us for liabilities incurred as a result of a blow-out or cratering of the well and underground reservoir loss or damage.

We expect to carry insurance with terms substantially similar to the terms of Noble’s current insurance. Noble carries protection and indemnity, or P&I, insurance, which is a comprehensive general liability insurance program covering liability resulting from offshore operations. This P&I insurance includes coverage for liability resulting from personal injury or death of third parties and our offshore employees, third-party property damage, pollution, spill clean-up and containment and removal of wrecks or debris. The insurance policy does not exclude losses resulting from our gross negligence or willful misconduct. We expect to have maximum liability coverage of approximately $500 million.

Our insurance policies and contractual rights to indemnity may not adequately cover our losses and liabilities in all cases. For additional information, please read “Risk Factors—Risks Related to Our Business—We may have difficulty obtaining or maintaining insurance in the future and our insurance coverage and contractual indemnity rights may not protect us against all of the risks and hazards we face.”

Our insurance program and the terms of our drilling contracts may change in the future. In addition, the indemnification provisions of our drilling contracts may be subject to differing interpretations, and enforcement of those provisions may be limited by public policy and other considerations.

Our property consists of drillships, jackups, semisubmerisbles and one FPSO. The capital associated with the repair and maintenance of our fleet increases with age. Our cold stacked rigs will also require additional capital expenditures before being able to be placed in operation.

Our rigs are subject to severe weather during certain periods of the year, particularly hurricane season in the Gulf of Mexico and typhoon season in India, which could halt our operations in Mexico and India, respectively, for prolonged periods or limit contract opportunities during that period. Otherwise, our business is not significantly affected by seasonal fluctuations.

As of March 31, 2014, approximately 2,700 employees of Noble and 1,400 contractors were dedicated to our operations. Certain of our employees in the U.K., Nigeria, Canada and Brazil are parties to collective bargaining agreements. In various countries, local law requires our participation in works councils. We have not experienced any material work stoppages at any of our facilities due to labor union activities in recent years. We believe our relations with our employees are good. Please read “Certain Relationships and Related Party Transactions—Employee Matters Agreement.”

We are a defendant in certain claims and litigation arising out of operations in the ordinary course of business, the resolution of which, in the opinion of management, will not be material to our financial position, results of operations or cash flows. There is inherent risk in any litigation or dispute and no assurance can be given as to the outcome of these claims.

During the second quarter of 2013, Noble reached an agreement with the Mexican tax authorities resolving certain previously disclosed tax assessments. This settlement removes potential contingent exposure of $502 million in Mexico for periods prior to 2007, which includes the assessments for years 2002 through 2005 of approximately $348 million, as well as settlement for 2006. The settlement of these assessments did not have a material impact on our Predecessor’s combined financial statements.

Audit claims of approximately $273 million attributable to income, customs and other business taxes have been assessed against us. We have contested, or intend to contest, these assessments, including through litigation if necessary, and we believe the ultimate resolution, for which we have not made any accrual, will not have a material adverse effect on our combined financial statements. Tax authorities may issue additional assessments or pursue legal actions as a result of tax audits and we cannot predict or provide assurance as to the ultimate outcome of such assessments and legal actions.

the cabotage laws and that drilling rigs are not vessels for purposes of those laws. The court also issued an injunction against the defendants prohibiting their interference with our drilling rigs or drilling operations. NIMASA appealed the court’s ruling on procedural grounds, and the court dismissed NIMASA’s lawsuit filed against us in February 2009. In December 2013, the court of appeals ruled in favor of NIMASA and quashed the High Court’s decision in our favor, although there is no adverse ruling against us with respect to the merits. We intend to appeal this latest decision and take further appropriate legal action to resist the application of Nigeria’s cabotage laws to our drilling rigs. The outcome of any such legal action and the extent to which we may ultimately be responsible for the surcharge is uncertain. If it is ultimately determined that offshore drilling rigs constitute vessels within the meaning of the Nigerian cabotage laws, we may be required to pay the surcharge and comply with other aspects of the Nigerian cabotage laws, which could adversely affect our operations in Nigerian waters and require us to incur additional costs of compliance.

NIMASA had previously informed the Nigerian Content Division of its position that we were not in compliance with the cabotage laws. The Nigerian Content Division makes determinations of companies’ compliance with applicable local content regulations for purposes of government contracting, including contracting for services in connection with oil and gas concessions where the Nigerian national oil company is a partner. The Nigerian Content Division had previously barred us from participating in new tenders as a result of NIMASA’s allegations, although the Division reversed its actions based on the favorable Federal High Court ruling. However, no assurance can be given with respect to our ability to bid for future work in Nigeria until our dispute with NIMASA is resolved.

Under the Nigerian Industrial Training Fund Act of 2004, as amended, or the Act, Nigerian companies with five or more employees must contribute annually 1 percent of their payroll to the Industrial Training Fund, or ITF, established under the Act to be used for the training of Nigerian nationals with a view towards generating a pool of indigenously trained manpower. We have not paid this amount on our expatriate workers employed by our non-Nigerian employment entity in the past as we did not believe the contribution obligation was applicable to them. In October 2012, we received a demand from the ITF for payments going back to 2004 and associated penalties in respect of these expatriate employees. In February 2013, the ITF filed suit seeking payment of these amounts. We do not believe that we owe the amount claimed. We have had discussions with the ITF to resolve the issue and do not believe the resolution of this matter will have a material adverse effect on our financial position or cash flows.

In 2007, Noble began, and voluntarily contacted the SEC and the DOJ, to advise them of an internal investigation of the legality under the FCPA and local laws of certain reimbursement payments made by Noble’s Nigerian affiliate to Noble’s customs agents in Nigeria. In 2010, Noble finalized settlements of this matter with each of the SEC and the DOJ. Pursuant to these settlements, Noble agreed to pay fines and penalties to the DOJ and the SEC and to certain undertakings, including refraining from violating the FCPA and other anti-corruption laws, self-reporting any violations of the FCPA or such laws to the DOJ and reporting to the DOJ on an annual basis Noble’s progress on anti-corruption compliance matters. There are no remaining obligations under either settlement.

Following the Distribution, transactions with related persons will be reviewed, approved or ratified in accordance with the policies and procedures set forth in our code of business conduct and ethics and our administrative policy manual (and, in the case of the Board, the Company’s Articles of Association and the provisions of U.K. company law), the procedures described below for director and officer questionnaires, and the other procedures described below.

Prior to the Distribution, we will adopt a code of business conduct and ethics that will provide that certain conflicts of interest are prohibited as a matter of Company policy. Under such code of business conduct and ethics, any employee, officer or director who becomes aware of a conflict, potential conflict or an uncertainty as to whether a conflict exists should bring the matter to the attention of a supervisor, manager or other appropriate personnel. Any actual or potential conflict of interest of this nature must be disclosed to the Board or a committee of the Board. Our Board and senior management review all reported relationships and transactions in which the Company and any director, officer or family member of a director or officer are participants to determine whether an actual or potential conflict of interest exists. Our Board may approve or ratify any such relationship or transaction if our Board determines that such relationship or transaction is in the Company’s best interests (or not inconsistent with the Company’s best interests) and the best interests of our shareholders. U.K. company law and our Articles of Association also contain specific provisions relating to the approval and authorization of conflicts of interests by members of our Board, in addition to our code of business conduct and ethics. A conflict of interest exists when an individual’s personal interest is adverse to or otherwise in conflict with the interests of the Company. Our code of business conduct and ethics sets forth several examples of how conflicts of interest may arise, including when:

In addition, our administrative policy manual, which will apply to all our employees, will define some additional examples of what the Company considers to be a conflict of interest, including when:

Each year we intend to require all our directors, nominees for director and executive officers to complete and sign a questionnaire in connection with our annual general meeting of shareholders. The purpose of the questionnaire is to obtain information, including information regarding transactions with related persons, for inclusion in our proxy statement or annual report.

In addition, we intend to review SEC filings made by beneficial owners of more than five percent of any class of our voting securities to determine whether information relating to transactions with such persons needs to be included in our proxy statement or annual report.

Prior to or simultaneously with the completion of the Distribution, we and Noble will enter into certain agreements that will effect the separation of our business from Noble and provide a framework for our ongoing relationship with Noble. The following is a summary of certain material terms of the agreements that we intend to enter into with Noble prior to the completion of the Distribution. Certain material terms of these agreements have not yet been determined. All of the terms of these agreements will be determined prior to the declaration of the Distribution, and the agreements will be entered into between us and Noble prior to or simultaneously with the completion of the Distribution.

The agreements summarized below have been or will be filed as exhibits to the registration statement of which this information statement is a part in connection with the Distribution, and the summaries of these agreements set forth the terms of the agreements that we believe are material. These summaries are qualified in their entirety by reference to the full text of such agreements.

We will enter into a master separation agreement prior to the completion of the Distribution to provide for, among other things, the Distribution and the transfer to us of assets and assumption by us of liabilities relating to our business and the responsibility of Noble for liabilities related to its, and in certain limited cases, our, business. We will agree to promptly take any and all actions necessary or desirable to effect the separation. Noble has reserved the right to determine, in its sole discretion, whether such Distribution shall occur or be abandoned, the date of the Distribution and the form, structure and all other terms of the Distribution.

The master separation agreement will provide for cross-indemnities that generally will place the financial responsibility on us and our subsidiaries for all liabilities associated with our current and historical businesses and operations (other than certain specified excluded liabilities), and generally will place on Noble and its subsidiaries (other than us) the financial responsibility for liabilities associated with all of Noble’s other current and historical businesses and operations, in each case regardless of the time those liabilities arise. The master separation agreement will also contain indemnification provisions under which we and Noble each indemnify the other with respect to breaches of the master separation agreement and certain ancillary agreements.

For liabilities arising from events occurring on or before the Distribution, the master separation agreement will contain a general release. Under this provision, we will release Noble and its subsidiaries, successors and assigns, and Noble will release us and our subsidiaries, successors and assigns, from any liabilities arising from events between us or our subsidiaries on the one hand, and Noble or its subsidiaries (other than us) on the other hand, occurring on or before the Distribution, including in connection with the activities to implement our separation from Noble. The general release does not apply to liabilities allocated between the parties under the master separation agreement, the other separation agreements or to specified ongoing contractual arrangements.

The master separation agreement between us and Noble relating to the separation or the Distribution will provide for an allocation of out-of-pocket costs and expenses incurred in connection with the separation of our business from Noble.

The master separation agreement will also contain provisions relating to, among other matters, confidentiality and the exchange of information, the use and preservation of books and records, provision of financial information and assistance with respect to financial matters, preservation of legal privileges, insurance coverages for claims occurring prior to the Distribution and the resolution and arbitration of disputes arising under the master separation agreement and other separation agreements.

We will enter into an employee matters agreement with Noble to allocate liabilities and responsibilities relating to our employees and their participation in certain compensation and benefit plans maintained by Noble or a subsidiary of Noble.

Effective as of the completion of the Distribution, most of our employee benefits will be provided under compensation and benefit plans adopted or assumed by us. In general, our plans will be substantially similar to the Noble plans that covered our employees prior to the completion of the Distribution. As to those assumed plans, we will become responsible for all benefits thereunder for active and former employees. We have not agreed to, and do not intend to, adopt any defined benefit pension plan covering U.S. employees.

We will agree to apportion and divide any related Noble trusts or other financial vehicles that currently fund Noble’s plans in order to fund both the plans that we are adopting and assuming and the plans that Noble will continue to sponsor after the completion of the Distribution. In addition, we will agree to maintain these adopted and assumed plans, without significant modification (except as required under applicable law) until at least the close of the calendar year following the year of our separation from Noble.

If participation is not terminated earlier, our employees will generally cease participation in all Noble plans (other than plans we assume sponsorship of) as of the consummation of the Distribution.

Generally, our employees’ prior service with Noble will be considered as service with us for purposes of our plans. However, no duplicative benefits will be provided to our employees under our plans and Noble plans.

Our employees generally will be considered terminated for purposes of the Noble’s 1991 Stock Option and Restricted Stock Plan, or 1991 Plan as of our separation from Noble at the time of the Distribution. Upon such termination, our employees’ rights to exercise Noble stock options will continue for up to the shorter of five years or the remaining term of the option and the vesting of each such option will accelerated as of such time, such that, each such option shall be fully vested. Time-vested restricted stock units held by our employees will be replaced with our time-vested restricted stock units of equivalent value and remaining duration.

With respect to outstanding Noble performance-vested restricted stock units under the 1991 Plan, a portion of such performance-vested restricted stock units will continue to be held by those employees and a portion will be cancelled. This apportionment will be based on the performance cycle that relates to each applicable Noble performance-vested restricted stock unit award, and the ratio of the number of days that have elapsed during the award’s performance cycle prior to our separation from Noble relative to the total number of days of such performance cycle. This ratio will be applied to each applicable grant of Noble performance-vested restricted stock units to determine the portion thereof that will continue as Noble performance-vested restricted stock units.

With regard to the cancelled portion of a Noble performance-vested restricted stock unit award, we will either grant the affected employee a performance-vested restricted stock unit that is intended to be of equivalent value and duration at the time of grant to the cancelled portion of the Noble award, or provide the employee compensation of equivalent value to the benefit the employee would have received had the cancelled portion of the Noble award remained in effect.

We will adopt a new equity incentive plan to administer replacement awards as described above and provide for the granting of new awards for periods following our separation from Noble.

With some exceptions, we will indemnify Noble for benefit plan and employment liabilities that are the subject of the employee matters agreement and that arise from any acts or omissions of our employees or agents or breach of the employee matters agreement. Noble will indemnify us for similar acts, omissions breaches of Noble and its employees or agents, as well as, for liabilities arising out of certain defects that potentially could be discovered in the future relating to the design of its compensation and benefit plans that we assumed or were used as a template for the plans we adopted.

On or before the completion of the Distribution, we and Noble will enter into a tax sharing agreement that will govern our respective rights, responsibilities, and obligations with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings, and certain other matters regarding taxes. References in this summary description of the tax sharing agreement to the terms “tax” or “taxes” mean taxes as well as any interest, penalties, additions to tax or additional amounts in respect of such taxes.

Under the tax sharing agreement, Noble generally will be liable for and indemnify us against all taxes attributable to the high specification drilling business and will be allocated all tax benefits attributable to such business. We generally will be liable for and indemnify Noble against all taxes attributable to the standard specification drilling business and will be allocated all tax benefits attributable to such business. Generally, we must reimburse Noble, and Noble must reimburse us, for the use by one party of tax benefits allocated to the other party, provided, however, that payment for any such tax benefits arising prior to the Distribution and utilized in a tax year beginning before the Distribution generally shall be required only if the creation or use of such tax benefits results from a tax contest resolved after the Distribution.

Noble generally will be responsible for preparing and filing all tax returns that include both taxes or tax benefits allocable to Noble and taxes or tax benefits allocable to us. However, we generally will be responsible for preparing and providing to Noble pro forma portions of such tax returns that include only taxes and tax benefits allocable to us. Noble generally will be responsible for preparing and filing all tax returns that include only taxes or tax benefits allocable to Noble, and we generally will be responsible for preparing and filing all tax returns that include only taxes or tax benefits allocable to us. However, we generally will not be permitted to take a position on any such tax return that is inconsistent with our or Noble’s past practice.

The party responsible for preparing and filing a tax return generally will also have the authority to control all tax proceedings, including tax audits, involving any taxes or adjustment to taxes reported on such tax return, except that we will be entitled to control tax proceedings relating to tax returns prepared and filed by Noble to the extent that such taxes or adjustments are allocable exclusively to us and are separable from taxes or adjustments relating to Noble. The tax sharing agreement further provides for cooperation between us and Noble with respect to tax matters, including the exchange of information and the retention of records that may affect our respective tax liabilities.

Finally, the tax sharing agreement will require that neither we nor any of our subsidiaries take or fail to take (i) any action that would be inconsistent with or cause to be untrue any material, information, covenant or

representation in any representation letters, tax opinions or IRS private letter ruling obtained by Noble and (ii) any action that prevents or could reasonably be expected to prevent the tax-free treatment of the spin-off or any transaction contemplated by the master separation agreement to be tax-free.

Moreover, in the event that the spin-off or certain related transactions were to fail to qualify for tax-free treatment, Noble generally would be responsible for all of the tax resulting from such failure. However, we generally would be responsible for all of the tax resulting from such failure if the spin-off or certain related transactions were to fail to qualify for tax-free treatment because of certain actions or failures to act by us or any of our subsidiaries that occur after the effective date of the tax sharing agreement.

Prior to the completion of the Distribution, we and Noble will enter into a transition services agreement in connection with the separation pursuant to which Noble will provide, on a transitional basis, certain administrative and other assistance to be determined, generally consistent with the services provided before the separation and we will provide certain transition services to Noble. The charges for the transition services generally are intended to allow the party providing the services to fully recover the costs directly associated with providing the services, plus all out-of-pocket costs and expenses, generally without profit. The charges for each of the transition services generally will be based on either a pre-determined flat fee or an allocation of the costs incurred, including certain fees and expenses of third-party service providers. We will be provided with reasonable information that supports the charges for transition services we receive.

We have been preparing for the transition of the services currently provided by Noble in order to limit the scope of services to be provided under the transition services agreement. We anticipate that we will be in a position to complete the transition of any such services on or before following the separation date.

The services provided under the transition services agreement will terminate at various times to be specified in the agreement (generally ranging from to after the completion of the Distribution). We may terminate certain specified services by giving prior written notice to the provider of such services and paying any applicable termination charge.

Subject to certain exceptions, the liabilities of either party under the transition services agreement will generally be limited to the aggregate charges (excluding any third-party costs and expenses included in such charges) actually paid to it pursuant to the transition services agreement. The transition services agreement will also provide that the parties will not be liable to us for any special, indirect, incidental or consequential damages.

We will also enter into transition services agreements and related rig charters pursuant to which we will provide certain transition services to Noble in connection with Noble’s operations in Brazil. We will provide both rig-based and shore-based support services in respect of Noble’s remaining business through the term of the existing contracts. Noble will compensate us on a cost-plus basis for providing such services and will also indemnify us for all liabilities arising out of the services agreement.

The following table sets forth information regarding our directors, director nominees and executive officers upon completion of the spin-off. We expect that our initial directors will be employed by Noble, and therefore, would not be considered independent under the applicable standards of the NYSE and the SEC. Prior to the completion of the spin-off, we expect to identify at least one director nominee that will be independent under these standards. It is expected that our director nominees will become directors upon the consummation of the spin-off. In addition, within 90 days of our listing on the NYSE, we intend to appoint an additional director who will be independent under these standards and we intend to appoint a third director who will be independent under these standards.

Randall D. Stilley will serve as our President and Chief Executive Officer effective upon completion of the spin-off. He has served as Executive Vice President of Noble since February 2014 and will leave this position upon completion of the spin-off. From May 2011 to February 2014, Mr. Stilley served as an independent business consultant and managed private investments. Mr. Stilley previously served as President and Chief Executive Officer of Seahawk Drilling, Inc. from August 2009 to May 2011 and Chief Executive Officer of the mat-supported jackup rig business at Pride International Inc. from September 2008 to August 2009. Seahawk Drilling filed for reorganization under Chapter 11 of the United States Bankruptcy Code in 2011. From October 2004 to June 2008, Mr. Stilley served as President and Chief Executive Officer of Hercules Offshore, Inc. Prior to that, Mr. Stilley was Chief Executive Officer of Seitel, Inc., an oilfield services company, President of the Oilfield Services Division at Weatherford International, Inc., and served in a variety of positions at Halliburton Company. He is a registered professional engineer in the State of Texas and a member of the Society of Petroleum Engineers. Mr. Stilley holds a Bachelor of Science degree in Aerospace Engineering from the University of Texas at Austin.

Steven A. Manz will serve as our Senior Vice President and Chief Financial Officer upon completion of the spin-off. He joined Noble in April 2014 and will leave this position upon completion of the spin-off. He served as Senior Vice President and Chief Financial Officer of Prospector Offshore Drilling S.A. from May 2010 to April 2013. He served as Senior Vice President and Chief Financial Officer of Seahawk Drilling, Inc. from August 2009 to May 2010. Seahawk Drilling filed for reorganization under Chapter 11 of the United States Bankruptcy Code in 2011. He served as Vice President and Chief Financial Officer—Mat Jackup Division of Pride International, Inc. from October 2008 to August 2009. From 2005 to 2007, he was with Hercules Offshore, Inc., where he served as Senior Vice President of Corporate Development and Planning and as Chief Financial Officer. From 1995 to 2004, Mr. Manz was with Noble Corporation, where he served in a variety of management roles including Managing Director-Noble Technology Services Division, Vice President of Strategic Planning, and Director of Accounting and Investor Relations. Mr. Manz holds a Bachelor of Business Administration in Finance from the University of Texas at Austin.

William C. “Charlie” Yester will serve as our Senior Vice President—Operations effective upon completion of the spin-off. He has over 40 years of experience in the drilling business, with over 22 years in offshore operations and has been employed with Noble in a number of operational roles since 1996. He has served most recently as Vice President—Division Manager (Africa) and prior to that, Vice President—Division Manager (Middle East and India). He will leave his current position upon completion of the spin-off. Mr. Yester began his

career with Noble in 1974 and from 1990 to 1994 served as a Division Manager with Helmerich and Payne International Drilling Company. In 1994-1995 he held a number of operational roles with Triton Engineering Company before returning to Noble in 1995. Mr. Yester holds a Bachelor of Science degree in Petroleum Engineering from Louisiana Tech University.

Lee M. Ahlstrom will serve as our Senior Vice President—Investor Relations, Strategy and Planning effective upon completion of the spin-off. He has served as Senior Vice President—Strategic Development of Noble since May 2011 and will leave this position upon completion of the spin-off. Mr. Ahlstrom served as Vice President of Investor Relations and Planning of Noble from May 2006 to May 2011. Prior to joining Noble, Mr. Ahlstrom served as Director of Investor Relations at Burlington Resources, held various management positions at UNOCAL Corporation and served as an Engagement Manager with McKinsey & Company. Mr. Ahlstrom began his career with Exxon where he held a variety of engineering positions. He holds a Bachelors of Science and a Masters degree in Mechanical Engineering from the University of Delaware.

Andrew W. Tietz will serve as our Senior Vice President—Marketing and Contracts effective upon completion of the spin-off. He has served as Vice President—Marketing and Contracts of Noble since May 2010 and will leave this position upon completion of the spin-off. He served as Director—Marketing and Contracts from December 2009 to April 2010. Mr. Tietz previously served as Director—Marketing and Business Development for Transocean Ltd. He served in various marketing and finance positions with Transocean and GlobalSantaFe and Global Marine, prior to their mergers with Transocean, including positions in Dubai, Egypt and Kuala Lumpur. Mr. Tietz holds a Bachelor of Science degree from the University of Colorado—Boulder and a Masters of Business Administration from the University of St. Thomas.

Todd D. Strickler will serve as our Vice President, General Counsel and Corporate Secretary effective upon completion of the spin-off. He has served as Associate General Counsel—Corporate of Noble since January 2013 and will leave this position upon completion of the spin-off. He served as Senior Counsel for Noble since February 2009. Prior to his joining Noble, he specialized in corporate and securities law at the law firm of Andrews Kurth LLP. Mr. Strickler holds a Bachelor of Science degree in Mechanical Engineering from the University of Texas at Austin and a Juris Doctorate from the University of Texas School of Law.

Luis A. Jimenez will serve as our Vice President—Administration upon completion of the spin-off. He joined Noble in April 2014 and will leave this position upon completion of the spin-off. He previously served with Atwood Oceanics, Inc. as Vice President—Human Resources from December 2010 to April 2014 and as Director—Compensation and Benefits from March 2007 to December 2010. Previously, Mr. Jimenez held key positions in leading companies, including The Shaw Group, Inc., Halliburton Company, Smith International and American Express. Mr. Jimenez holds Bachelor of Science and Master of Science degrees from Texas A&M University.

Julie J. Robertson will serve as a member of our Board of Directors effective upon completion of the spin-off. She serves as Executive Vice President of Noble and has held such position since February 2006. In this role, Ms. Robertson is responsible for overseeing human resources, procurement and supply chain, learning and development, health, safety and environmental functions, and information technology. Ms. Robertson served as Senior Vice President—Administration from July 2001 to February 2006. Ms. Robertson has served continuously as Corporate Secretary since December 1993. Ms. Robertson served as Vice President—Administration of Noble Drilling from 1996 to July 2001. In 1994, Ms. Robertson became Vice President—Administration of Noble Drilling Services Inc. From 1989 to 1994, Ms. Robertson served consecutively as Manager of Benefits and Director of Human Resources for Noble Drilling Services Inc. Prior to 1989, Ms. Robertson served consecutively in the positions of Risk and Benefits Manager and Marketing Services Coordinator for a predecessor subsidiary of Noble, beginning in 1979. We believe Ms. Robertson is a suitable member of our board of directors because of her extensive industry experience, particularly as an officer of offshore drilling companies and oilfield service companies. Ms. Robertson also brings valuable knowledge and experience overseeing and managing our assets and operations.

Upon the completion of the spin-off, our board of directors will consist of directors. Vacancies on our board of directors can be filled by resolution of our board of directors. Our articles of association will provide that our board of directors will consist of a minimum of three and a maximum of eight directors. The term of office for each director will be until his or her successor is elected at our annual shareholder meeting or his or her death, resignation or removal, whichever is earliest to occur.

Upon the completion of the spin-off, the standing committees of our board of directors will be an Audit Committee, a Compensation Committee and a Nominating and Corporate Governance Committee. Each of the committees will report to our board of directors as they deem appropriate and as our board of directors may request. The expected composition, duties and responsibilities of these committees are set forth below.

The primary responsibilities of the Audit Committee are the appointment, compensation, retention and oversight of Paragon Offshore’s auditors (including review and approval of the terms of engagement and fees), to review with the auditors Paragon Offshore’s financial reports (and other financial information) provided to the SEC and the investing public, to prepare and approve an annual report for inclusion in proxy statements, and to assist our board of directors with oversight of the following: integrity of Paragon Offshore’s financial statements; compliance by Paragon Offshore with standards of business ethics and legal and regulatory requirements; qualifications and independence of Paragon Offshore’s independent auditors (including both our independent registered public accounting firm and out statutory auditors); and performance of Paragon Offshore’s independent auditors and internal auditors.

Upon completion of the spin-off, the Audit Committee will consist of . We believe that will qualify as an independent director according to the rules and regulations of the SEC and the NYSE with respect to audit committee membership. We expect to add a second independent director within 90 days after the spin-off, at which time is expected to leave the Audit Committee. We expect to have a fully independent Audit Committee within one year of the spin-off.

We also believe that qualifies as an “audit committee financial expert,” as such term is defined in Item 401(h) of Regulation S-K. Our board of directors will adopt a written charter for the Audit Committee in connection with the spin-off, which will be available on our corporate website at www.paragonoffshore.com upon the completion of the spin-off.

The Compensation Committee of our board of directors is responsible for determining the compensation of our board of directors and executive officers and for establishing, implementing and monitoring adherence to our executive compensation philosophy. The Compensation Committee provides oversight on behalf of our board of directors in reviewing and administering the compensation programs, benefits and incentive and equity-based compensation plans. The Compensation Committee operates independently of management and receives compensation advice and data from outside independent advisors.

Immediately following the spin-off, the Compensation Committee will consist of . Our board of directors will adopt a written charter for the Compensation Committee in connection with the spin-off, which will be available on our corporate website at www.paragonoffshore.com upon the completion of the spin-off.

The primary responsibilities of the Nominating and Corporate Governance Committee are to assist our board of directors in reviewing, evaluating, selecting and recommending director nominees when one or more

directors are to be appointed, elected or re-elected to our board of directors; to monitor, develop and recommend to our board of directors a set of principles, policies and practices relating to corporate governance; and to oversee the process by which our board of directors, our Chief Executive Officer and executive management are evaluated.

Immediately following the spin-off, the Nominating and Corporate Governance Committee will consist of . Our board of directors will adopt a written charter for the Nominating and Corporate Governance Committee in connection with the spin-off, which will be available on our corporate website at www.paragonoffshore.com upon the completion of the spin-off.

We are currently developing a compensation program for members of our board of directors other than those who are employed by Noble or us.

Conflicts of interest exist and may arise in the future as a result of the relationships between us and Noble. Our directors and executive officers may also own substantial amounts of Noble shares or equity awards. Their position at Noble and the ownership of any Noble equity or equity awards creates, or may create the appearance of, conflicts of interest when these expected directors and officers are faced with decisions that could have different implications for Noble than for us. The resolution of these conflicts may not be in the best interest of us or our shareholders. In particular:

Please read “Risk Factors—Risks Related to Our Separation from and Our Relationship with Noble—Our directors and executive officers have potential conflicts of interest, and conflicts of interest between Noble and us could be resolved in a manner unfavorable to us,” “Risk Factors—Risks Related to Our Separation from and Our Relationship with Noble—The corporate opportunity provisions in our master separation agreement could enable Noble to benefit from corporate opportunities that might otherwise be available to us” and “Certain Relationships and Related Party Transactions—Master Separation Agreement—Corporate Governance.”

The Companies Act imposes a general duty on our directors to avoid situations in which they have or can have a direct or indirect interest that conflicts with, or may conflict with our interests. This applies, in particular, to the exploitation of property, information or opportunity, and whether or not we could take advantage of the property, information or opportunity. Our articles of association which will be adopted prior to the completion of the spin-off will allow our board of directors to authorize a director’s conflict of interest subject, if required, to certain conditions which may be imposed on the conflicted director by the board of directors including, for example, a requirement that the relevant director does not attend all or part of a board meeting.

The board authorization will only be effective if the matter in question has been proposed in writing for consideration at a meeting of our directors, the required quorum is met without counting the conflicted director in question or any other interested director and if the conflicted directors have not participated in the making of the decision or if the decision would have been valid without the participation of the conflicted directors.

Our board of directors will oversee the risk management activities designed and implemented by our management. Our board of directors will execute its oversight responsibility for risk management both directly and through its committees. The full board of directors will also consider specific risk topics, including risks associated with our strategic plan, business operations and capital structure. All committees will report to the full board of directors as appropriate, including when a matter rises to the level of a material or enterprise level risk. In addition, our board of directors will receive detailed regular reports from members of our senior management and other personnel that include assessments and potential mitigation of the risks and exposures involved with their respective areas of responsibility.

Our board of directors will adopt a code of business conduct and ethics in connection with the completion of the spin-off. The code of business conduct and ethics will apply to all of our employees, officers and directors. The full text of our code of business conduct and ethics will be posted on our website. If we make any substantive amendments to this code or grant any waiver from a provision to our chief executive officer, principal financial officer or principal accounting officer, we will disclose the nature of such amendment or waiver on our website or in a current report on Form 8-K.

We currently operate as a wholly-owned business of Noble and will continue to do so until the consummation of the Transactions. As a result, Noble has determined the compensation of our employees, including our Named Executive Officers (as defined below), and will continue to do so until the completion of the spin-off. Unless otherwise stated, the compensation tables and other information set forth below reflect amounts paid or payable or awards granted to our Named Executive Officers by Noble under Noble’s compensation plans and programs. Following the completion of the spin-off, our Named Executive Officers will receive compensation and benefits under our compensation programs and plans, except that certain benefits will continue to be provided to our employees, including our Named Executive Officers, by Noble pursuant to a transition services agreement relating to our business. Please read “Certain Relationships and Related Party Transactions—Transition Services Agreements.”

We have yet to establish a compensation committee of our board of directors. As a result, except as otherwise indicated, the compensation information discussed in this “Compensation Discussion and Analysis” reflects the compensation philosophy and program established by the compensation committee of Noble’s board of directors in place to compensate Noble’s management for the year ended December 31, 2013.

Specific compensation and benefit programs for Paragon Offshore have yet to be developed. Until our compensation committee is formed, the Noble board of directors or compensation committee will provide input, analyze and approve Paragon Offshore’s compensation program and policies. We expect our initial compensation philosophy and program to be similar to Noble’s.

The executive officers who were largely responsible for conducting the business and managing the operations of the standard specification drilling business during 2013 are also executive officers of Noble. For the fiscal year ended December 31, 2013, the Noble employees who will be included in the executive team for Paragon Offshore and who are referred to as our Named Executive Officers are: William C. “Charlie” Yester, who is Vice President—Division Manager (Africa) for Noble’s West Africa operations and who will be our Senior Vice President—Operations upon completion of the spin-off; Andrew W. Tietz, who is Vice President—Marketing and Contracts of Noble and who will be our Senior Vice President—Marketing and Contracts upon completion of the spin-off; and Lee M. Ahlstrom, who is Senior Vice President—Strategic Development of Noble and who will be our Senior Vice President—Investor Relations, Strategy and Planning upon completion of the spin-off. Our chief executive officer was not an employee of Noble in 2013.

Noble’s executive compensation program reflects Noble’s philosophy that executive compensation should be structured so as to closely align each executive’s interests with the interests of its shareholders, emphasizing equity-based incentives and performance-based pay. The primary objectives of Noble’s compensation program are to:

Consistent with this philosophy, Noble seeks to provide a total compensation package for its named executive officers that is competitive with those of the companies in the Peer Group for a given year. A substantial portion of total compensation is subject to Noble’s, individual and share price performance and is at risk of forfeiture. In designing these compensation packages, Noble’s compensation committee annually reviews each compensation component and compares its use and level to various internal and external performance standards and market reference points.

Noble’s compensation program for our Named Executive Officers consists of the following components:

Noble’s compensation committee is responsible for determining the compensation of Noble’s directors and executive officers and for establishing, implementing and monitoring adherence to Noble’s executive compensation philosophy. Noble’s compensation committee provides oversight on behalf of Noble’s board in reviewing and administering compensation programs, benefits, incentive and equity-based compensation plans. Noble’s compensation committee operates independently of Noble’s management and receives compensation advice and data from outside independent advisors.

Noble’s compensation committee charter authorizes the compensation committee to retain and terminate, as the committee deems necessary, independent advisors to provide advice and evaluation of the compensation of directors or executive officers, or other matters relating to compensation, benefits, incentive and equity-based compensation plans and corporate performance. Noble’s compensation committee is further authorized to approve the fees and retention terms of any independent advisor that it retains. Noble’s compensation committee engaged Mercer (US) Inc., or Mercer, an independent consulting firm, to serve as the committee’s compensation consultant.

Noble’s compensation consultant reports to and acts at the direction of the Noble’s compensation committee and is independent of management, provides comparative market data regarding executive and director compensation to assist in establishing reference points for the principal components of compensation and provides information regarding compensation trends in the general marketplace, compensation practices of the Peer Group described below, and regulatory and compliance developments. The compensation consultant regularly participates in the meetings of Noble’s compensation committee and meets privately with the committee at each committee meeting.

Noble competes for talent with employers across many different sectors around the world, but Noble’s primary competitive market consists of offshore drilling companies and oilfield service companies. In making compensation decisions for Noble’s named executive officers, each element of their total direct compensation is compared against published compensation data and data provided by the compensation consultant. Data from peer groups play an important role in the process used by Noble’s compensation committee to determine the design, components and award levels in its executive pay program. Noble’s compensation committee conducts a review of the compensation program on an annual basis to ensure that Noble’s compensation program works as designed and intended and in light of current market conditions. The following peer groups have been used or are currently being used by Noble for the purposes indicated below:

References to the “Peer Group” mean the 2013 Peer Group or 2012 Peer Group, as the context requires.

Noble’s compensation committee conducted an extensive review of the 2012 Peer Group and made the following changes to define the 2013 Peer Group, effective in 2013. The following companies were removed from the Peer Group: Baker Hughes Inc., Halliburton Company, Nabors Industries Ltd., Schlumberger Ltd. and Seadrill Limited. The following companies were added to the Peer Group: Cameron International Corp,

Helmerich & Payne, Inc., Oil States International, Inc., Patterson-UTI Energy, Inc. and Superior Energy Services, Inc. These changes resulted from feedback received from shareholders and a thorough review of the 2012 Peer Group, with a focus on size as measured by revenue and market capitalization, scope and type of operations, sources for executive talent, best pay practices and availability of pay data. Noble believes that the 2013 Peer Group best reflects the group of companies with which Noble most closely competes operationally and for executive talent. As of December 31, 2013, Noble ranked at the 43rd percentile and 57th percentile of the 2013 Peer Group based on revenues and market capitalization, respectively.

Noble’s compensation committee benchmarks compensation of the named executive officers to the compensation of individuals in like positions in the companies included in the Peer Group. Noble’s compensation committee does not benchmark executive compensation to specific levels or percentiles of the Peer Group, but instead endeavors to be competitive with the Peer Group with respect to the various components and the aggregate level of compensation of officers in comparable positions. Noble’s compensation committee believes that this approach gives the committee the flexibility to respond to individual circumstances and offer competitive compensation packages to Noble’s officers.

Base Salary. Base salary levels of our Named Executive Officers were determined based on a combination of factors, including Noble’s compensation philosophy, market compensation data, competition for key executive talent, the named executive officer’s experience, leadership, prior contribution to Noble’s success, Noble’s overall annual budget for merit increases and the named executive officer’s individual performance in the prior year. Noble’s compensation committee conducts an annual review of the base salaries of named executive officers by taking into account these factors.

Short-Term Incentive Plan. The STIP gives participants, including our Named Executive Officers, the opportunity to earn annual cash bonuses in relation to specified target award levels defined as a percentage of their base salaries. Plan award sizes were developed considering market data and internal equity.

Noble’s success is tied to the achievement of key performance goals that include annual company and business unit financial and operating objectives, as well as individual and team performance. In addition, Noble’s business requires the successful ongoing planning and execution of a complex capital expansion program to meet the needs of its customers, and the successful management and execution of strategic initiatives.

Performance Component. The Performance Component comprises 50% of the total target STIP award and is calculated by measuring actual performance against the performance goals set annually by the compensation committee. The weighted percentage of corporate goal achievement of 145 percent corresponds to an applicable multiplier under the STIP of 1.45, which resulted in a calculated performance bonus for the named executive officers equal to 1.45 times their target performance bonus.

While individual Performance Components are calculated based on EBITDA and safety, the overall funding of the 2013 STIP is based solely on EBITDA performance relative to target, plus up to a 20% additional amount to be determined by the Noble’s compensation committee. Based on EBITDA performance, the STIP funded at 115% of target funding. Noble’s compensation committee included a portion, but not all, of the additional amount permitted under the STIP to fund the STIP at 132% of target funding. As a result of this performance-based STIP funding mechanism, the maximum performance bonus for Noble’s named executive officers was reduced from the calculated amount of 145% of target to the funded amount of 132% of target.

The calculation of the Performance Component for corporate personnel, including the named executive officers, is set forth in the following table.

Achievement of Goals Component. Fifty percent (50%) of the total target STIP award is based on the achievement of specific individual, team and company goals, or Goals Component, such as Noble’s financial results, newbuild program, strategic initiatives, operational performance and safety results. For the 2013 plan year, Noble’s compensation committee approved total STIP payouts applicable to the named executive officers.

Long-Term Incentives. Noble believes it is important to reward executive officers and key employees who experienced superior performance in their current position, as well as the likelihood of high-level performance in the future, with equity compensation, in keeping with Noble’s overall compensation philosophy to align executives’ and employees’ interests with the interests of Noble’s shareholders. The amount of long-term incentive compensation is determined annually based on the analysis of competitive data. The table below sets forth the components of the 2013 and 2014 awards:

PVRSUs. PVRSUs vest based on the achievement of specified corporate performance criteria over a three-year performance cycle (currently cumulative total shareholder return, or TSR). The number of PVRSUs awarded to a participant equals the number of units that would vest if the maximum level of performance for a given performance cycle is achieved. The number of such units that vests is determined after the end of the applicable performance period. Any PVRSUs that do not vest are forfeited. Upon satisfaction of the performance criteria and vesting, PVRSUs convert into unrestricted shares of Noble. Holders of PVRSUs are entitled to

receive dividend equivalents. The market price of Noble’s shares at the time of award, the difficulty in achieving the performance targets and the accounting valuation of the award are used to calculate the number of PVRSUs awarded.

In setting the target number of PVRSUs, Noble’s compensation committee takes into consideration market data, the award’s impact on total compensation, the performance of the executive during the last completed year, and the potential for further contributions by the executive in the future.

Noble’s compensation committee approved the target award levels in the tables below because it believes that if Noble performs at or above the 51st percentile relative to the companies in the Peer Group, compensation levels should be commensurate with this performance. If Noble performs below this level, Noble’s compensation levels should be lower than the 50th percentile. The maximum number of PVRSUs that can vest is 200% of the target award level.

To determine the number of PVRSUs that will vest, the percentile ranking of TSR for Noble’s shares is computed relative to the companies in the Peer Group at the end of the performance cycle. Then, the Peer Group percentile ranking is cross-referenced in the table below to determine the percentage of PVRSUs that will vest. The performance thresholds in the below table are applicable for the 2013-2015 performance cycle (vests in early 2016) and the 2014-2016 performance cycle (vests in early 2017).

In the past three years, our Named Executive Officers have forfeited a substantial portion of performance-based restricted shares and units. The following table describes performance-vested restricted stock units that have recently vested and been forfeited in the years below. The performance awards for these cycles were measured against the performance thresholds in place at the time the awards were granted.

Time-Vested RSUs. Time-vested RSUs vest one-third per year over three years commencing one year from the award date. Upon vesting, these units convert automatically into unrestricted shares of Noble. Holders of time-vested RSUs are entitled to receive dividend equivalents on the restricted stock units. Noble’s compensation committee believes that time-vested RSUs remain an important element of compensation as they promote retention, reward individual and team achievement and align executives with the interests of shareholders.

Stock Options. Nonqualified stock options granted prior to 2013 vest one-third per year over three years commencing one year from the grant date and expire 10 years after the grant date. All options granted have an exercise price equal to the grant date fair market value of Noble’s shares, and the number of options granted is

based on the Black-Scholes option pricing model. In considering feedback from shareholders, and with a goal of balancing the need to have a performance-based program while considering the need for retention in Noble’s highly competitive sector, Noble’s compensation committee determined that an equal balance of PVRSUs and time-vested RSUs was appropriate. Beginning in 2013, stock options are no longer granted.

The total value of long-term incentive awards is developed considering Noble’s objectives for this component of total compensation relative to the pay of the companies in the Peer Group and is set to be competitive with the Peer Group. Noble’s CEO recommends for consideration and approval by Noble’s compensation committee the total value of awards for all positions other than his own. Noble’s compensation committee determines the total award value of awards for Noble’s CEO and, based in part on Noble’s CEO’s recommendations, the other positions.

Awards granted under the 1991 Plan that have not vested may be subject to accelerated vesting upon the occurrence of certain events, such as the death, Disability or Retirement of the employee or a Change in Control of Noble (as set forth, and as such terms are defined, in the 1991 Plan, the grant agreements relating to such awards or the change of control employment agreements).

Noble offers retirement programs that are intended to supplement the personal savings and social security for covered officers and other employees. The programs include the Noble Drilling Corporation 401(k) Savings Plan, the Noble Drilling Corporation 401(k) Savings Restoration Plan, the Noble Drilling Corporation Salaried Employees’ Retirement Plan, the Noble Drilling Corporation Retirement Restoration Plan, and the Noble Drilling Corporation Profit Sharing Plan. Noble believes that these retirement programs assist Noble in maintaining a competitive position in attracting and retaining officers and other employees. A description of these plans, including eligibility and limits, is set forth in the following table.

For additional information regarding these plans, please see the description following the tables captioned “Nonqualified Deferred Compensation” and “Pension Benefits.”

Other Benefits. Noble provides named executive officers with perquisites and other personal benefits that Noble and its compensation committee believe are reasonable and consistent with its overall compensation program.

Noble provides healthcare, life and disability insurance, and other employee benefit programs to its employees, including its named executive officers, which Noble believes assists in maintaining a competitive position in terms of attracting and retaining officers and other employees. These employee benefit plans are provided on a non-discriminatory basis to all employees.

In connection with Noble’s change in place of incorporation from the Cayman Islands to Switzerland, certain of our Named Executive Officers received relocation benefits. These relocation benefits were benchmarked against Noble’s peers and Noble believes they are customary for expatriates in this market and appropriate and necessary to maintain Noble’s management team, including the named executive officers. Noble provided similar relocation benefits to its other expatriate employees, including non-executive employees, who relocated to Geneva. The relocation package includes: (i) a lump sum relocation allowance of one month’s base salary; (ii) temporary housing for up to six months; and (iii) standard outbound services, including “house hunting” trips and shipment of personal effects.

All of Noble’s officers located in Noble’s Geneva office receive the following expatriate benefits:

The housing and car allowances, foreign service premium and resident area premium are provided for five years from the date of such individual’s most recent relocation. Noble also provides tax equalization for the employees, including the named executive officers, for five years so that their overall tax liability will be equal to their “stay at home” U.S. tax liability with respect to their base salary, annual bonus, foreign service premium, resident area allowance and incentive plan awards.

In early 2014, Noble adopted a share ownership policy that includes minimum share ownership requirements for all of its directors and officers, including the named executive officers. The share ownership policy prohibits sales of Noble shares unless such ownership requirements are satisfied. Noble’s share ownership guidelines for Noble’s executives are set forth below.

Noble’s share ownership policy for its outside directors is six times their annual retainer, or $300,000.

Noble’s Policy on Trading in Company stock prohibits hedging or short sale transactions or buy or sell puts or calls involving Noble securities and prohibits purchases of Noble securities on margin.

Noble’s practice has been to award restricted shares or restricted stock units to new executives contemporaneously with their hire date and annually to current executives at regularly-scheduled meetings of the compensation committee following the public release of the immediately preceding quarter’s financial results and any other material nonpublic information.

Noble has offered change of control employment agreements to certain of its senior executives since 1998. These agreements become effective only upon a change of control of Noble (within the meaning set forth in the agreement). If a defined change of control occurs and the employment of the named executive officer is terminated either by Noble (for reasons other than death, disability or cause) or by the officer (for good reason or upon the officer’s determination to leave without any reason during the 30-day period immediately following the first anniversary of the change of control), which requirements can be referred to as a “double trigger”, the executive officer will receive payments and benefits set forth in the agreement. Noble believes a “double trigger” requirement, rather than a “single trigger” requirement (which would be satisfied simply if a change of control of Noble occurs), increases shareholder value because it prevents an immediate unintended windfall to the named executive officers in the event of a friendly (non-hostile) change of control of Noble.

In October 2011, Noble’s board of directors approved a new form of change of control employment agreement for its executive officers. The terms of the new form of employment agreement are substantially the same as the prior agreements, except the new form only provides benefits in the event of certain terminations by Noble for reasons other than death, disability or “cause” or by the officer for “good reason” and does not provide for an Excise Tax Payment. In February 2012, the Noble’s board of directors approved further changes to the form of change of control agreement and the 1991 Plan to revise the definition of change in control such that the percentage of Noble’s shares that must be acquired by an individual, entity or group to trigger a change in control was increased from 15% to 25%.

Also in October 2011, Noble’s compensation committee approved new forms of equity award agreements for executive officers under the 1991 Plan such that the definition of change of control in these agreements would be consistent with the definition of change of control in the award agreements for all of Noble’s employees.

In recent years Noble’s compensation committee has increased the proportion of annual long-term incentive compensation to its named executive officers represented in the form of restricted shares or restricted stock units as compared to nonqualified stock options. This compensation committee action reflects, among other things, the changes in accounting standards modifying the accounting treatment of nonqualified stock options. Noble’s compensation committee intends to continually monitor these issues regarding tax and accounting regulations, overall effectiveness of the programs and best practices.

Noble’s compensation committee intends to retain flexibility to design compensation programs, even where compensation payable under such programs may not be fully deductible, if such programs effectively recognize a full range of criteria important to the Noble’s success and result in a gain to Noble that would outweigh the limited negative tax effect.

Noble believes its compensation program’s components and levels are appropriate for its industry and provide a direct link to enhancing shareholder value and advancing the core principles of Noble’s compensation philosophy and objectives to ensure Noble’s long-term success. Noble will continue to monitor current trends and issues in its industry, as well as the effectiveness of its program with respect to its named executive officers, to properly consider whether to modify its program where and when appropriate.

We are currently developing the compensation policies, plans and programs for our executive officers, including our Named Executive Officers, that we will implement in connection with or following the spin-off. We expect such plans will include an equity incentive plan that will permit grants of share-based awards to our officers, directors and employees. We will provide information about our compensation plans and programs in this information statement when available.

The following tables provide information regarding the compensation awarded to or earned during the year ended December 31, 2013 by our Named Executive Officers who were employed by Noble during such period. Prior to our separation from Noble, Lee M. Ahlstrom, Andrew W. Tietz and William C. “Charlie” Yester were employees of Noble. Compensation information for these executives relates to their roles as employees of Noble. All references in the following tables to stock relate to awards of Noble shares granted by Noble. Such amounts do not necessarily reflect the compensation such persons will receive following our separation from Noble, which could be higher or lower, because historical compensation was determined by Noble and future compensation levels will be determined based on the compensation policies, programs and procedures to be established by the compensation committee of our board of directors.

The following table sets forth the compensation awarded by Noble during the year ended December 31, 2013 to our Named Executive Officers who were Noble employees.

The following table sets forth certain information about grants of plan-based awards made by Noble during the year ended December 31, 2013 to each of our Named Executive Officers who were Noble employees.

The following table sets forth certain information about outstanding equity awards at December 31, 2013 held by our Named Executive Officers that were granted by Noble.

The following table will set forth certain information about the amounts received upon the exercise of options relating to Noble shares or the vesting of Noble restricted stock units during the year ended December 31, 2013 for each of our Named Executive Officers who were Noble employees on an aggregated basis.

The following table sets forth certain information about retirement payments and benefits and defined benefit plans maintained by Noble Drilling Corporation, a wholly-owned subsidiary of Noble, as of December 31, 2013 for each of our Named Executive Officers who were Noble employees and participated in such plans.

Under the Noble Drilling Corporation Salaried Employees’ Retirement Plan, the normal retirement date is the date that the participant attains the age of 65. The plan covers salaried employees, but excludes certain categories of salaried employees including any employees hired after July 31, 2004. A participant’s date of hire is the date such participant first performs an hour of service for Noble or its subsidiaries, regardless of any subsequent periods of employment or periods of separation from employment with Noble or its subsidiaries.

A participant who is employed by Noble or any of its affiliated companies on or after his normal retirement date (the date that the participant attains the age of 65) is eligible for a normal retirement pension upon the earlier of his required beginning date or the date of termination of his employment for any reason other than death or transfer to the employment of another of Noble’s affiliated companies. Required beginning date is defined in the plan generally to mean the April 1 of the calendar year following the later of the calendar year in which a participant attains the age of 70 1/2 years or the calendar year in which the participant commences a period of severance, which (with certain exceptions) commences with the date a participant ceases to be employed by Noble or any of its affiliated companies for reasons of retirement, death, being discharged, or voluntarily ceasing employment, or with the first anniversary of the date of his absence for any other reason.

The normal retirement pension accrued under the plan is in the form of an annuity which provides for a payment of a level monthly retirement income to the participant for life, and in the event the participant dies prior to receiving 120 monthly payments, the same monthly amount will continue to be paid to the participant’s designated beneficiary until the total number of monthly payments equals 120. Participants may elect to receive, in lieu of one of the other optional forms of payment provided in the plan, each such option being the actuarial equivalent of the normal form. These optional forms of payment include a single lump-sum (if the present value of the participant’s vested accrued benefit under the plan does not exceed $10,000), a single life annuity, and several forms of joint and survivor elections.

The average monthly compensation is defined in the plan generally to mean the participant’s average monthly rate of compensation from Noble for the 60 consecutive calendar months that give the highest average monthly rate of compensation for the participant. In the plan, compensation is defined (with certain exceptions) to mean the total taxable income of a participant during a given calendar month, including basic compensation, bonuses, commissions and overtime pay, but excluding extraordinary payments and special payments (such as moving expenses, benefits provided under any employee benefit program, and stock options and stock appreciation rights). Compensation includes salary reduction contributions by the participant under any plan maintained by Noble or any of its affiliated companies. Compensation may not exceed the annual compensation limit as specified by the Internal Revenue Service for the given plan year. Any compensation in excess of this limit is taken into account in computing the benefits payable under the Noble Drilling Corporation Retirement Restoration Plan.

Early retirement can be elected at the time after which the participant has attained the age of 55 and has completed at least five years of service (or for a participant on or before January 1, 1986, when he or she has completed 20 years of covered employment). A participant will be eligible to commence early retirement benefits upon the termination of his employment with Noble or its subsidiaries prior to the date that the participant attains the age of 65 for any reason other than death or transfer to employment with another of Noble’s subsidiaries. The formula used in determining an early retirement benefit reduces the accrued monthly retirement income by multiplying the amount of the accrued monthly retirement income by a percentage applicable to the participant’s age as of the date such income commences being paid.

If a participant’s employment terminates for any reason other than retirement, death or transfer to the employment of another of Noble’s subsidiaries and the participant has completed at least five years of service, the participant is eligible for a deferred vested pension. The deferred vested pension for the participant is the

monthly retirement income commencing on the first day of the month coinciding with or next following his or her normal retirement date. If the participant has attained the age of 55 and has completed at least five years of service or if the actuarial present value of the participant’s accrued benefit is more than $1,000 but less than $10,000, the participant may elect to receive a monthly retirement income that is computed in the same manner as the monthly retirement income for a participant eligible for an early retirement pension. If the participant dies before benefits are payable under the plan, the surviving spouse or, if the participant is not survived by a spouse, the beneficiary designated by the participant, is eligible to receive a monthly retirement income for life, commencing on the first day of the month next following the date of the participant’s death. The monthly income payable to the surviving spouse or the designated beneficiary shall be the monthly income for life that is the actuarial equivalent of the participant’s accrued benefit under the plan.

The Noble Drilling Corporation Retirement Restoration Plan is an unfunded, nonqualified plan that provides the benefits under the Noble Drilling Corporation Salaried Employees’ Retirement Plan’s benefit formula that cannot be provided by the Noble Drilling Corporation Salaried Employees’ Retirement Plan because of the annual compensation and annual benefit limitations applicable to the Noble Drilling Corporation Salaried Employees’ Retirement Plan under the Code. A participant’s benefit under the Noble Drilling Corporation Retirement Restoration Plan that was accrued and vested on December 31, 2004, will be paid to such participant (or, in the event of his or her death, to his designated beneficiary) at the time benefits commence being paid to or with respect to such participant under the Noble Drilling Corporation Salaried Employees’ Retirement Plan, and will be paid in a single lump sum payment, in installments over a period of up to five years, or in a form of payment provided for under the Noble Drilling Corporation Salaried Employees’ Retirement Plan (such form of distribution to be determined by the committee appointed to administer the plan). A participant’s benefit under the Noble Drilling Corporation Retirement Restoration Plan that accrued or became vested after December 31, 2004, will be paid to such participant (or in the event of his death, to his designated beneficiary) in a single lump sum payment following such participant’s separation from service with Noble and its subsidiaries.

The following table sets forth certain information as of December 31, 2013 and for the year then ended about the Noble Drilling Corporation 401(k) Savings Restoration Plan for our Named Executive Officers who were Noble employees.

The Noble Drilling Corporation 401(k) Savings Restoration Plan (which applies to compensation deferred by a participant that was vested prior to January 1, 2005) and the Noble Drilling Corporation 2009 401(k) Savings Restoration Plan (which applies to employer matching contributions and to compensation that was either deferred by a participant or became vested on or after January 1, 2005) are nonqualified, unfunded employee benefit plans under which certain highly compensated employees of Noble and its subsidiaries may elect to defer compensation in excess of amounts deferrable under the Noble Drilling Corporation 401(k) Savings Plan and, subject to certain limitations specified in the plan, receive employer matching contributions in cash. The employer matching amount is determined in the same manner as are employer matching contributions under the Noble Drilling Corporation 401(k) Savings Plan.

Compensation considered for deferral under these nonqualified plans consists of cash compensation payable by an employer, defined in the plan to mean certain subsidiaries of Noble, to a participant in the plan for personal services rendered to such employer prior to reduction for any pre-tax contributions made by such employer and prior to reduction for any compensation reduction amounts elected by the participant for benefits, but excluding bonuses, allowances, commissions, deferred compensation payments and any other extraordinary compensation. For each plan year, participants are able to defer up to 19 percent of their basic compensation for the plan year, all or any portion of any bonus otherwise payable by an employer for the plan year, and for plan years commencing prior to January 1, 2009, the applicable 401(k) amount. The applicable 401(k) amount is defined to mean, for a participant for a plan year, an amount equal to the participant’s basic compensation for such plan year, multiplied by the contribution percentage that is in effect for such participant under the Noble Drilling Corporation 401(k) Savings Plan for the plan year, reduced by the lesser of (i) the applicable dollar amount set forth in Section 402(g)(1)(B) of the Code for such year or (ii) the dollar amount of any Noble Drilling Corporation 401(k) Savings Plan contribution limitation for such year imposed by the committee.

A participant’s benefit under these nonqualified plans normally will be distributed to such participant (or in the event of his or her death, to his or her designated beneficiary) in a single lump sum payment or in approximately equal annual installments over a period of five years following such participant’s separation from service with Noble and its subsidiaries. Mr. Ahlstrom and Mr. Yester are participants in the Noble Drilling Corporation 401(k) Savings Restoration Plan and in the Noble Drilling Corporation 2009 401(k) Savings Restoration Plan.

Noble has guaranteed the performance of a change of control employment agreement entered into by a subsidiary of Noble with each executive officer as of December 31, 2008 and December 9, 2009 (when the original agreements were amended and restated), including Messrs. Ahlstrom and Yester. These change of control employment agreements become effective upon a change of control of Noble (as described below) or a termination of employment in connection with or in anticipation of such a change of control, and remain effective for three years thereafter.

The agreement provides that if the officer’s employment is terminated within three years after a change of control or prior to but in anticipation of a change of control, either (1) by us for reasons other than death, disability or “cause” (as defined in the agreement) or (2) by the officer for “good reason” (which term includes a material diminution of responsibilities or compensation and which allows Noble a cure period following notice of the good reason) or upon the officer’s determination to leave without any reason during the 30-day period immediately following the first anniversary of the change of control of Noble, the officer will receive or be entitled to the following benefits:

However, a “change of control” will not occur as a result of a transaction if (i) Noble becomes a direct or indirect wholly owned subsidiary of a holding company and (ii) either (A) the shareholdings for such holding company immediately following such transaction are the same as the shareholdings immediately prior to such transaction or (B) the shares of Noble’s voting securities outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the outstanding voting securities of such holding company immediately after giving effect to such transaction.

Under the agreement, “cause” means (i) the willful and continued failure by the officer to substantially perform his duties or (ii) the willful engaging by the officer in illegal conduct or gross misconduct that is materially detrimental to Noble or its affiliates.

Payments to “specified employees” under Code Section 409A may be delayed until six months after the termination of the officer’s employment.

The agreement contains a confidentiality provision obligating the officer to hold in strict confidence and not to disclose or reveal, directly or indirectly, to any person, or use for the officer’s own personal benefit or for the benefit of anyone else, any trade secrets, confidential dealings or other confidential or proprietary information belonging to or concerning Noble or any of its affiliated companies, with certain exceptions set forth expressly in the provision. Any term or condition of the agreement may be waived at any time by the party entitled to have the benefit thereof (whether the subsidiary of Noble party to the agreement or the officer) if evidenced by a writing signed by such party.

The agreement provides that payments thereunder do not reduce any amounts otherwise payable to the officer, or in any way diminish the officer’s rights as an employee, under any employee benefit plan, program or arrangement or other contract or agreement of Noble or any of its affiliated companies providing benefits to the officer.

Assuming a change of control had taken place on December 31, 2013 and the employment of the Named Executive Officer was terminated either (1) by Noble for reasons other than death, disability or cause or (2) by the officer for good reason, the following table sets forth the estimated amounts of payments and benefits under the agreement for each of the indicated Named Executive Officers.

The change of control employment agreement provides that if the officer’s employment is terminated within three years after a change of control by reason of disability or death, the agreement will terminate without further obligation to the officer or the officer’s estate, other than for the payment of Accrued Obligations, the Severance Amount, the Supplemental Retirement Amount and the timely provision of the Welfare Benefit Continuation. If the officer’s employment is terminated for cause within the three years after a change of control, the agreement will terminate without further obligation to the officer other than for payment of the officer’s base salary through the date of termination, to the extent unpaid, and the timely payment when otherwise due of any compensation previously deferred by the officer. If the officer voluntarily terminates the officer’s employment within the three years after a change of control (other than during the 30-day period following the first anniversary of a change of control), excluding a termination for good reason, the agreement will terminate without further obligation to the officer other than for payment of the officer’s base salary through the date of termination, to the extent unpaid, the payment of the Accrued Obligations, and the timely payment when otherwise due of any compensation previously deferred by the officer.

In October 2011, the compensation committee of Noble approved a new form of change of control employment agreement for executive officers. The terms of the new form of employment agreement are substantially the same as the agreements described above, except the new form only provides benefits in the event of certain terminations by Noble for reasons other than death, disability or “cause” or by the officer for “good reason” and does not provide for an Excise Tax Payment. In February 2012, the form of change of control employment agreement was further amended to revise the definition of change in control such that the percentage of our outstanding registered shares or combined voting power of our then outstanding voting securities entitled to vote generally in the election of directors that must be acquired by an individual, entity or group to trigger a change in control was increased from 15% to 25%. None of our Named Executive Officers are party to these new forms of change of control employment agreements.

The 1991 Plan was amended in 2009, among other things, to allow for the award of restricted stock units and incorporate the definition of change of control in the change of control employment agreements to which our Named Executive Officers are party which are described above under “Change of Control Employment Agreements.” In 2010, 2011 and 2012, Noble granted nonqualified stock options and awarded time-vested and performance-vested restricted stock units under the 1991 Plan to Noble’s named executive officers.

In February 2012, the 1991 Plan was amended to revise the definition of change in control such that the percentage of Noble’s outstanding registered shares or combined voting power of Noble’s then outstanding voting securities entitled to vote generally in the election of directors that must be acquired by an individual, entity or group to trigger a change in control was increased from 15% to 25%.

Noble’s nonqualified stock option agreements provide that if a termination of employment occurs after the date upon which the option first becomes exercisable and before the date that is 10 years from the date of the option grant by reason of the officer’s death, disability or retirement, then the option, including any then unvested shares of Noble all of which shall be automatically accelerated, may be exercised at any time within five years after such termination of employment but not after the expiration of the 10-year period. If an officer terminated employment on December 31, 2013 due to disability, death or retirement, all the officer’s then outstanding nonqualified stock options granted by Noble in 2012 and 2011 would have become fully exercisable. Under the 1991 Plan, retirement means a termination of employment with Noble or an affiliate of Noble on a voluntary basis by a person if immediately prior to such termination of employment, the sum of the age of such person and the number of such person’s years of continuous service with Noble or one or more of its affiliates is equal to or greater than 60.

Assuming that the Named Executive Officer’s employment terminated on December 31, 2013 due to disability, death or retirement, the following table sets forth certain information about unexercisable options subject to accelerated vesting for the indicated Named Executive Officers.

Noble granted time-vested and performance-vested restricted stock units in 2011, 2012 and 2013, some of which continue to be subject to vesting restrictions.

Assuming that either the Named Executive Officer’s employment terminated on December 31, 2013 due to disability, death or retirement or if a change of control had taken place on that date, the following table sets forth certain information about time-vested restricted stock units subject to accelerated vesting for the indicated Named Executive Officers.

Noble’s performance-vested restricted stock unit agreements provide for the vesting of 50 percent of the awards for each of the 2011-2013, 2012-2014 and 2013-2015 cycles upon the occurrence of a change of control of Noble (whether with or without termination of employment of the officer by Noble or an affiliate). The agreements also provide for pro rata vesting upon the occurrence of the death, disability or retirement of the officer, based on months of service completed in the performance period; however, such vesting is also subject to the actual performance achieved and may not result in an award. The agreements define a change of control as set out in the 1991 Plan, provided the change of control also satisfies the requirements of Code Section 409A. Assuming that a change of control had taken place on December 31, 2013, the following table sets forth certain information about restricted stock units subject to accelerated vesting for the indicated Named Executive Officers. The amounts in the table below include the PVRSUs that were awarded with respect to the 2011-2013 cycle that partially vested subsequent to December 31, 2013.

Our Chief Executive Officer, Randall D. Stilley, was not employed by Noble in 2013. In connection with the commencement of his employment with Noble in February 2014, Mr. Stilley entered into a change of control employment agreement in the form approved by Noble’s board of directors in February 2012 as described above, was granted 96,200 Noble restricted stock units that generally vest in three equal annual installments and will receive a base salary of $800,000.

In connection with the commencement of his employment with Noble in April 2014, our Chief Financial Officer, Steven A. Manz, was granted 23,730 Noble restricted stock units that generally vest in three equal annual installments and will receive a base salary of $385,000. Effective upon completion of the spin-off, Lee M. Ahlstrom will receive a base salary of $350,000 and will have a target bonus of $175,000 under the short-term incentive plan. Effective upon completion of the spin-off, Andrew W. Tietz will receive a base salary of $325,000 and will have a target bonus of $211,250 under the short-term incentive plan. Effective upon completion of the spin-off, William C. Yester will receive a base salary of $400,000 and will have a target bonus of $260,000 under the short-term incentive plan.

The following table sets forth certain information regarding beneficial ownership of our shares as of , after giving effect to the Transactions, for

Each shareholder’s percentage ownership before the spin-off is based on our shares outstanding as of , after giving effect to the Transactions. Each shareholder’s percentage ownership after the Distribution is based on shares outstanding immediately after the completion of the Distribution. Noble currently owns all of our outstanding shares.

The amounts and percentages of shares beneficially owned are reported on the basis of regulations of the SEC governing the determination of beneficial ownership of securities. Under the rules of the SEC, a person is deemed to be a “beneficial owner” of a security if that person has or shares “voting power,” which includes the power to vote or to direct the voting of such security, or “investment power,” which includes the power to dispose of or to direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities of which that person has a right to acquire beneficial ownership within 60 days. Securities not outstanding but included in the beneficial ownership of each such person, are deemed to be outstanding for purposes of computing the percentage of outstanding securities owned by such person, but are not deemed to be outstanding for purposes of computing the percentage owned by any other person. Under these rules, more than one person may be deemed a beneficial owner of the same securities and a person may be deemed a beneficial owner of securities as to which he or she has no economic interest. Except as disclosed in the footnotes to this table and subject to applicable community property laws, we believe that each shareholder identified in the table possesses sole voting and investment power over all shares shown as beneficially owned by the shareholder.

Unless otherwise noted below, the address of each beneficial owner listed in the table is c/o Paragon Offshore plc, 3151 Briarpark Drive, Suite 700, Houston, Texas 77042.

The following information is a summary of the material terms of our shares, nominal (i.e., par) value $ per share, as will be specified in our articles of association, or Articles. You are encouraged to read the Articles, which are included as an exhibit to this information statement.

All of our shares will be issued fully paid and will not be subject to any further calls or assessments by us.

There are no conversion rights, redemption provisions or sinking fund provisions relating to any of our shares that will be delivered in connection with the Distribution. Under U.K. law, persons who are neither residents nor nationals of the U.K. may freely hold, vote and transfer our shares in the same manner and under the same terms as U.K. residents or nationals.

Currently, we have two ordinary shares outstanding, which were issued to a wholly-owned subsidiary of Noble in connection with the formation of the Company, with a nominal (i.e., par) value of $1.00 per share (the “subscriber shares”). We propose to cancel the Subscriber Shares as part of a reduction of capital effected prior to consummation of the spin-off.

We will issue ordinary shares with a nominal value of $ to Noble in consideration for the transfer by Noble of a portion of the standard specification drilling business to us (the “Consideration Shares”). The Consideration Shares will be issued at a premium (i.e., for a value in excess of their aggregate nominal value), and prior to the Distribution Date, we will undertake a capital reduction to cancel this share premium and associated reserves to instead create distributable profits that we could use to pay dividends or repurchase our shares.

We are currently a private limited company under U.K. law. As part of the Transactions, we will re-register as a public limited company under U.K. law. In order to be registered as a public limited company, we are required to have a minimum nominal share capital of £50,000 denominated in British pounds sterling. In order to meet this requirement, we will issue 50,000 Deferred Sterling Shares of £1 each to a wholly owned subsidiary of Noble that will become one of our subsidiaries prior to the Distribution. The Deferred Sterling Shares will not be entitled to vote or receive dividends and will not have any right to participate in any distribution upon our winding up except that, after the return of the nominal value paid up or credited as paid up on every other class of our shares and the distribution of £100 million to each holder thereof, each Deferred Sterling Share would be entitled to £1. The Deferred Sterling Shares will remain outstanding after completion of the spin-off.

We expect to pay a regular quarterly cash dividend on our ordinary shares. Initially, we expect that the amount of this dividend will be between approximately $20 million and $22.5 million in the aggregate per quarter, or between approximately $80 million and $90 million in the aggregate on an annualized basis.

Subject to the Companies Act and our Articles, we may declare a dividend to be paid to the shareholders and may fix the time for payment of such dividend. There are no fixed dates on which entitlement to dividends arises under our Articles. The timing, declaration, amount and payment of these dividends to shareholders falls

within the discretion of our board of directors. The proposal or declaration of cash dividends by our board of directors, and the amount thereof, will depend on many factors, including our financial condition, earnings, future business prospects, opportunities, share price, capital requirements and any other factors our board of directors may deem relevant. In addition, we expect the agreements governing certain of our indebtedness to restrict the amount of dividends we may pay; however, we expect such agreements to permit payment of dividends in the amounts described above so long as we are not in default under any such agreement.

There can be no assurance we will pay any dividend or that we will continue to pay any dividend even if we commence the payment of dividends. Please read “Risk Factors—Risks Related to Our Separation from and Our Relationship with Noble—We have no obligation to, and may not be able to, declare or pay dividends on our shares. If we do not declare and pay dividends on our shares, our share price could decline.”

As discussed below, under U.K. law, with limited exceptions, we will only be able to declare dividends, make distributions or repurchase shares out of distributable profits. While we are still a private limited company, we intend to create distributable profits through a capital reduction by cancelling the share premium or associated reserves arising on ordinary shares we will issue to Noble in consideration for the transfer by Noble of a portion of the standard specification business to us. We expect this capital reduction to create at least $400 million of distributable profits. Based on our anticipated dividend amount described above and subject to the limitations on the payment of dividends described above, the distributable profits created from this capital reduction would be sufficient to allow us to pay dividends in such amounts for at least 16 quarters following the spin-off. Following such time, we may seek to create distributable profits on our statutory balance sheet through other methods to allow us to declare future dividends, make distributions or repurchase shares. These efforts may include certain customary intra-group reorganizations, which are alternatives for the creation of distributable reserves in a U.K. public limited company.

Subject to our Articles, we may from time to time declare and pay dividends (of any amounts and in any currency) on our issued share capital only out of our “distributable profits” on our statutory balance sheet. We are not permitted to pay dividends out of share capital, which includes share premium. Distributable profits are defined as our “accumulated, realized profits, so far as not previously utilized by distribution or capitalization, less accumulated, realized losses, so far as not previously written off in a reduction or reorganization of capital.” Distributable profits are determined in accordance with generally accepted accounting principles at the time the relevant accounts are prepared. The “relevant accounts” (i.e., separate stand-alone statutory accounts) will typically be our most recent audited annual accounts but may, in certain circumstances, be our interim accounts. We will also not be permitted to make a distribution if, at that time, the amount of our net assets is less than the aggregate of our issued and paid-up share capital and undistributable profits or to the extent that the distribution will reduce our net assets below such amount.

In addition to cash dividends from distributable profits, our Articles permit the payment of all or any part of a dividend to be satisfied by distributing specific assets, in particular paid up shares or debentures of any other company. Our Articles also permit a scrip dividend scheme under which shareholders may be given the opportunity to elect to receive fully paid ordinary shares instead of cash, with respect to all or part of future dividends.

If a shareholder owes any money to us relating in any way to any class of our shares, our board of directors may deduct some or all of this amount from any dividend on the shareholder’s shares or from other money payable by us in respect of those shares. Amounts deducted in this way may be used to pay the amount owed to us.

Unclaimed dividends and other amounts payable by us can be invested or otherwise used by directors for our benefit until they are claimed under U.K. law. All dividends remaining unclaimed for a period of 12 years after they first became due for payment will be forfeited and cease to be owing to the shareholder.

The Articles provide that at a general meeting any resolutions put to a vote must be decided on a poll. Subject to any rights or restrictions as to voting attached to any class of shares and subject to disenfranchisement (i) in the event of non-payment of any call or other sum due and payable in respect of any shares not fully paid, (ii) in the event of any non-compliance with any statutory notice requiring disclosure of an interest in shares, (iii) in relation to resolutions proposed by shareholders without complying with the Articles or (iv) where any shares are held by or on behalf of any of our subsidiaries, every shareholder who (being an individual) is present in person or (being a corporation) is present by a duly authorized corporate representative at our general meeting will have one vote for every share of which he or she is the holder, and every person present who has been appointed as a proxy shall have one vote for every share in respect of which he or she is the proxy.

In the case of joint holders, the vote of the person whose name stands first in the register of shareholders and who tenders a vote, whether in person or by proxy, shall be accepted to the exclusion of any votes tendered by any other joint holders. Unless a resolution to remove a serving member of the board of directors or to amend certain provisions in the Articles is to be adopted, the necessary quorum for a general shareholder meeting is the shareholders who together represent at least the majority of the voting rights of all the shareholders entitled to vote at the meeting, present in person or by proxy (i.e., any shares whose voting rights have been disenfranchised pursuant to the Companies Act shall be disregarded for the purposes of determining a quorum).

The Articles, however, also provide that the following matters require the presence of shareholders who together represent at least two-thirds of the voting rights of all the shareholders entitled to vote at a meeting:

(a) the adoption of a resolution to remove a serving member of the board of directors; and

(b) the adoption of a resolution to amend, vary, suspend the operation of, disapply or cancel the provisions of the Articles relating to (i) the quorum and voting requirements for general meetings of shareholders (ii) the election and removal of directors and size of the board of directors, (iii) fair price protections in relation to business combinations and (iv) transactions with interested shareholders (please read “—Anti-Takeover Provisions”).

An annual general meeting shall be called by not less than 21 clear days’ notice. For all other general meetings except general meetings properly requisitioned by shareholders, such meetings shall be called by not less than 21 clear days’ notice. The notice of meeting may also specify a time by which a person must be entered on the register in order to have the right to attend or vote at the meeting. The number of shares then registered in their respective names shall determine the number of votes a person is entitled to cast at that meeting.

An appointment of proxy (whether in hard copy form or electronic form) must be received by Paragon Offshore not less than 48 hours before the time appointed for holding the meeting or adjourned meeting at which the person named in the appointment of proxy proposes to vote and at such time as may be specified by the board of directors in compliance with the provisions of the Companies Act.

Pursuant to the Companies Act, any of our shares held by or for the benefit of any of our subsidiaries will not have voting rights.

In the event of our voluntary winding up, the liquidator may, on obtaining any sanction required by law, divide among the shareholders the whole or any part of our assets, whether or not the assets consist of property of one kind or of different kinds.

The liquidator may also, with the same authority, transfer the whole or any part of the assets to trustees of any trusts for the benefit of the shareholders as the liquidator decides. No past or present shareholder can be compelled to accept any asset which could subject him or her to a liability.

Under Section 549 of the Companies Act, directors are, with certain exceptions, unable to allot securities without being authorized either by the shareholders in a general meeting or by the Articles of a company pursuant to Section 551 of the Companies Act. In addition, under the Companies Act, the issuance of equity securities that are to be paid for wholly in cash (except shares held under an employees’ share scheme) must be offered first to the existing equity shareholders in proportion to the respective nominal (i.e., par) values of their holdings on the same or more favorable terms, unless a special resolution (i.e., 75% of votes cast) to the contrary has been passed in a general meeting of shareholders or the Articles otherwise provide an exclusion from this requirement (which exclusion can be for a maximum of five years after which a further shareholder approval would be required to renew the exclusion). In this context, equity securities generally means shares other than shares which, with respect to dividends or capital, carry a right to participate only up to a specified amount in a distribution (and therefore includes our shares) and all rights to subscribe for or convert securities into such shares. Prior to the completion of the spin-off, Noble, our sole shareholder is expected to adopt resolutions permitting our board of directors to allot up to $ nominal value of shares (or shares, which equals approximately % of our outstanding shares on the Distribution Date) without further shareholder approval and to waive preemptive rights with respect to such shares.

The Companies Act prohibits an English company from issuing shares for no consideration, including with respect to grants of restricted shares made pursuant to equity incentive plans. Accordingly, the nominal value of the shares issued upon the lapse of restrictions or the vesting of any restricted shares award or any other share-based grant underlying any of our shares must be paid pursuant to the Companies Act.

Section 793 of the Companies Act gives us the power to require persons whom it knows has, or whom it has reasonable cause to believe has, or within the previous three years has had, any ownership interest in any of our shares, (the “default shares”), to disclose prescribed particulars of those shares. For this purpose default shares includes any of our shares allotted or issued after the date of the Section 793 notice in respect of those shares. Failure to provide the information requested within the prescribed period after the date of sending the notice will result in sanctions being imposed against the holder of the default shares as provided within the Companies Act.

Under the Articles, we will also withdraw certain voting rights of default shares if the relevant holder of default shares has failed to provide the information requested within the prescribed period after the date of sending the notice, depending on the level of the relevant shareholding (and unless our board of directors decides otherwise).

Subject to the Companies Act and to any preemptive rights the holders of shares may have, we may purchase any of our own shares (including any redeemable shares, if our board of directors should decide to issue any) by way of “off market purchases” with the prior approval of an ordinary shareholder resolution (i.e., passed with the majority of the votes cast). Such approval may be for a specific purchase or constitute a general authority lasting for up to five years from the date of the resolution, and renewal of such approval for additional

five year terms may be sought more frequently. However, shares may only be repurchased out of distributable profits or, subject to certain exceptions, the proceeds of a fresh issue of shares made for that purpose. Prior to the consummation of the spin-off, our sole shareholder is expected to adopt ordinary resolutions permitting our board of directors to repurchase up to of our shares. Currently, we do not expect to repurchase any shares in the near future after the Distribution. We do not expect to repurchase shares in the near future after the spin-off.

(3) if it is not presented for registration together with the share certificate and such evidence of title as our board of directors reasonably requires;

(7) in certain circumstances, if the holder has failed to provide the required particulars to us as described under “—Disclosure of Interests in Shares” above.

If our board of directors refuses to register a transfer of a share, it shall, within two months after the date on which the transfer was lodged with us, send to the transferee notice of the refusal, together with our reasons for refusal.

The notice of a general meeting shall be given to the shareholders (other than any who, under the provisions of the Articles or the terms of allotment or issue of shares, are not entitled to receive notice), to our board of directors and to the auditors. Under U.K. law, we are required to hold an annual general meeting of shareholders within six months from the day following the end of our fiscal year and, subject to the foregoing, the meeting may be held at a time and place determined by our board of directors whether within or outside of the U.K.

The Articles provide that English courts have exclusive jurisdiction with respect to any suits brought by shareholders (in their capacity as such) against us or our directors.

Certain provisions in our Articles are intended to have the effect of delaying or preventing a change in control of us or changes in our management. For example, we expect that our Articles will include provisions that establish an advance notice procedure for shareholder approvals to be brought before an annual meeting of our shareholders, including proposed nominations of persons for election to our board of directors. U.K. law also prohibits the passing of written shareholder resolutions by public companies. These provisions, alone or together, could delay or prevent hostile takeovers and changes in control or changes in our management, even if these events would be beneficial for our shareholders.

An English public limited company is potentially subject to the U.K. City Code on Takeovers and Mergers, or Takeover Code, if, among other factors, its place of central management and control is within the U.K., the Channel Islands or the Isle of Man. The Takeover Panel will generally look to the residency of a company’s directors to determine where it is centrally managed and controlled. The Takeover Panel has confirmed that, based upon our current and intended plans for our directors and management, the Takeover Code (as currently drafted) will not apply to us. However, it is possible that, in the future, circumstances could change that may cause the Takeover Code to apply to us.

Our board of directors will have the necessary corporate authority, without further action of our shareholders for a period of five years, but subject to statutory and fiduciary duties, to give effect to a shareholder rights plan and to fix the terms thereof. Under a shareholder rights plan, subscription rights to acquire newly issued shares in Paragon Offshore would be issued to all shareholders. The exercise of these subscription rights would not be dependent on our having a need for new capital. The newly issued shares may be of any class and so may have rights equal to or in priority to our ordinary shares. After a person acquired beneficial ownership of a specified percentage (typically 20 percent) of our outstanding shares, the rights would become exercisable by all holders thereof (other than the acquiring person and any affiliated or associated persons of it). Each such holder of a right would, upon the right becoming exercisable, have the right to receive upon exercise shares with a market value greater than the exercise price. As a result, such a plan could make it more difficult for another party to obtain control of Paragon Offshore by threatening to dilute a potential acquirer’s ownership interest in the company under certain circumstances.

Our board of directors may adopt a shareholder rights plan at any time, including in conjunction with the consummation of the Distribution or sometime thereafter. Our board of directors will have the authority without reference to our shareholders, but subject to statutory and fiduciary duties, to determine whether or not to redeem the subscription rights granted under a shareholder rights plan (if redeemable).

These protections and other provisions of our Articles, as well as any adoption of a shareholder rights plan, could discourage potential acquisition proposals and could delay or prevent a change in control. However, these provisions are intended to enhance shareholder value by discouraging hostile takeover tactics. For example, a shareholder rights plan could be used to improve the likelihood that (i) any process which may result in an acquisition or change of control is conducted in an orderly manner, including by providing additional time to negotiate with additional bidders or pursue alternative strategies; (ii) all shareholders are treated equally and fairly and in a similar manner; (iii) the success of the company is promoted for the benefit of its shareholders as a whole; (iv) the long term interests of the company, its employees, its shareholders and its business would be safeguarded, and/or (v) the company would not suffer serious economic harm. Moreover, our board of directors could use a shareholder rights plan to prevent the consummation of a hostile offer that our board believed undervalued us or was otherwise not in the long term interests of shareholders.

It should be noted that these provisions potentially provide our board of directors with greater power to defend a hostile tender offer (or the acquisition of a significant interest in us) and could have the effect of discouraging tender offers for our ordinary shares and, as a consequence, may adversely affect the market price of our ordinary shares or inhibit fluctuations in the market price of our ordinary shares that could otherwise result from actual or rumored takeover attempts.

The Articles provide that, in general, we may not engage in a business combination with an interested shareholder for a period of three years after the time of the transaction in which the person became an interested shareholder.

The prohibition on business combinations with interested shareholders does not apply in some cases, including if:

As defined in the Articles, an interested shareholder for the purposes of these provisions generally includes any person who, together with that person’s affiliates or associates, (1) owns 15% or more of our issued shares or (2) is an affiliate or associate of the company and owned 15% or more of our issued shares at any time within the previous three years.

The Articles also include “fair price provisions” that require the approval of a specified percentage of the voting shares before we may enter into certain “business combinations” with an “interested shareholder” unless:

For purposes of the fair price provisions, “business combination” is broadly defined to include mergers and consolidations of us or our subsidiaries with an interested shareholder or any other person that is or would be an interested shareholder after such transaction; a sale, exchange or mortgage of assets having a fair market value of $1 million or more to an interested shareholder or any affiliate of an interested shareholder; any merger or consolidation of any of our subsidiaries with an aggregate fair market value of $1 million or more with an interested shareholder or an affiliate of an interested shareholder; the issuance or transfer of our securities or the securities of our subsidiaries having a fair market value of $1 million or more to an interested shareholder or any affiliate of an interested shareholder; the adoption of a plan of liquidation or dissolution proposed by any interested shareholder or any affiliate of an interested shareholder; and any reclassification of securities or other transaction which has the effect, directly or indirectly, of increasing the number of shares beneficially owned by any interested shareholder or any affiliate of an interested shareholder. For purposes of the fair price provisions, “interested shareholder” is generally defined as a person who, together with any affiliates of that person, beneficially owns, directly or indirectly, 5% or more of the combined voting power of our then issued and outstanding shares.

In connection with the Transactions, we intend to enter into certain debt arrangements. As the terms of these arrangements are finalized, we will provide the required and appropriate information in subsequent amendments to this registration statement.

We have filed with the SEC a registration statement on Form 10 under the Exchange Act relating to the ordinary shares being distributed in the spin-off. This information statement forms a part of that registration statement but does not contain all of the information set forth in the registration statement and the exhibits and schedules to the registration statement. For further information relating to us and Paragon Offshore ordinary shares, reference is made to the registration statement, including its exhibits and schedules. Statements made in this information statement relating to any contract or other document are not necessarily complete and you should refer to the exhibits attached to the registration statement for copies of the actual contract or document. You may review a copy of the registration statement, including its exhibits and schedules, at the SEC’s Public Reference Room, located at 100 F Street, NE, Washington, D.C. 20549 or on the SEC’s website at http://www.sec.gov. You may obtain a copy of the registration statement from the SEC’s Public Reference Room upon payment of prescribed fees. Please call the SEC at (800) SEC-0330 for further information on the operation of the Public Reference Room.

We are, and following the spin-off, will be subject to the information and reporting requirements of the Exchange Act and, in accordance with the Exchange Act, we will file periodic reports, proxy statements and other information with the SEC. Those periodic reports, proxy statements and other information will be available for inspection and copying at the SEC’s Public Reference Room and the SEC’s website at http://www.sec.gov.

We intend to furnish holders of ordinary shares of Paragon Offshore with annual reports containing financial statements prepared in accordance with U.S. generally accepted accounting principles and audited and reported on, with an opinion expressed, by an independent registered public accounting firm.

We plan to make available free of charge on our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports as soon as reasonably practicable after we electronically file or furnish such materials to the SEC. All of these documents will be made available free of charge on our website, www.paragonoffshore.com and will be provided free of charge to any shareholders requesting a copy by writing to: Paragon Offshore plc, 3151 Briarpark Drive, Suite 700, Houston, Texas 77042 , Attention: Corporate Secretary. The information on our website is not, and shall not be deemed to be, a part of this information statement or incorporated into any other filings we make with the SEC.

No person is authorized to give any information or to make any representations with respect to the matters described in this information statement other than those contained in this information statement or in the documents incorporated by reference in this information statement and, if given or made, such information or representation must not be relied upon as having been authorized by us or Noble. Neither the delivery of this information statement nor completion of the spin-off shall, under any circumstances, create any implication that there has been no change in our affairs or those of Noble since the date of this information statement, or that the information in this information statement is correct as of any time after its date.

In our opinion, the accompanying combined balance sheets and the related combined statements of income, of comprehensive income, of cash flows and of changes in equity present fairly, in all material respects, the financial position of Noble Standard-Spec Business at December 31, 2013 and 2012, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2013 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

Noble Standard-Spec Business (sometimes referred to as the “Company”, “we”, or “Predecessor”) comprises the standard specification drilling fleet and related operations of Noble Corporation plc (“Noble” or “Parent”). We are an offshore drilling contractor for the oil and gas industry with global operations. In addition, we conduct contract labor services in Canada.

The accompanying financial statements have been prepared in anticipation of Noble’s plan to separate certain of our assets and entities into an independent, publicly-traded company, Paragon Offshore plc (“Paragon Offshore” or “Successor”). Our fleet currently includes 45 mobile offshore drilling units, which consist of four semisubmersibles, five drillships, 36 jackups, and one floating production storage and offloading unit (“FPSO”), as well as the Hibernia platform operations. In July 2013, Noble sold the Noble Lewis Dugger, a standard specification jackup to an unrelated third party, and in January 2014, Noble sold two cold stacked submersibles, the Noble Joe Alford and the Noble Lester Pettus, to an unrelated third party. The historical results for these rigs are included in our historical results, but these rigs are not included in the current fleet count.

Noble intends to transfer Predecessor assets, excluding two jackups and one semisubmersible currently owned by Noble to Paragon Offshore. Noble plans to separate Paragon Offshore through the distribution of Paragon Offshore shares to Noble shareholders in a spin-off (the “Distribution”).

These combined financial statements have been prepared on a stand-alone basis and are derived from Noble’s consolidated financial statements and accounting records. The combined financial statements reflect the Company’s financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States (“GAAP”). The combined financial position, results of operations and cash flows of the Company may not be indicative of the Company had it been a separate stand-alone entity during the periods presented, nor are the results stated herein indicative of what the Company’s financial position, results of operations and cash flows may be in the future.

These combined financial statements include assets and liabilities that are specifically identifiable or have been allocated to the Company. Costs directly related to the Company have been included in the accompanying financial statements. The Company receives service and support functions from Noble. The costs associated with these support functions have been allocated relative to Noble in its entirety, which is considered to be the most meaningful under the circumstances. The costs were allocated to us using various allocation inputs, such as head count, services rendered, and assets assigned to us. These allocated costs are primarily related to corporate administrative expenses, employee related costs, including pensions and other benefits, and corporate and shared employees for the following functional groups:

We consider the expense allocation methodology and results to be reasonable for all periods presented. These allocations may not be indicative of the actual expenses the Company may have incurred as a separate independent public company during the periods presented nor are these costs indicative of what the Company will incur in the future. See Note 13, “Related Parties (Including Relationship with Parent and Corporate Allocations),” for a further description of allocation of expenses.

Noble maintains benefit and stock-based compensation programs at the corporate level. To the extent that Company employees participate in these programs, we were allocated a portion of the associated expenses. However, the Combined Balance Sheets do not include any Noble net benefit plan obligations or Noble outstanding equity related to the stock-based compensation programs. See Note 4, “Stock-Based Compensation Plans,” and Note 13, “Related Parties (Including Relationship with Parent and Corporate Allocations),” for a further description of these stock-based compensation and other benefit programs.

Historically, Noble has provided us with financing, cash management and other treasury services. Cash transferred to and from Noble has historically been recorded as intercompany payables and receivables which are reflected in net parent investment in the accompanying combined financial statements.

All significant transactions between Noble and the Company have been included in these combined financial statements. Transactions with Noble are reflected in the accompanying Combined Statements of Changes in Equity as “Net transfers from (to) Parent” and in the accompanying Combined Balance Sheets within “Net parent investment”. The “Net parent investment” equity balance represents Noble’s historical investment in the Company and the net effect of transactions with and allocations from Noble as of the date presented.

Noble expects to repay certain outstanding indebtedness with payments received from the Company. The Company is expected to fund such payments to Noble with proceeds from borrowings. Accordingly, this indebtedness is included in these combined financial statements. See Note 3, “Debt,” for a further description of long-term debt.

The combined financial statements include our net assets and results of our operations as described above. All significant intercompany transactions and accounts within our combined businesses have been eliminated.

We define foreign currency as any non-U.S. denominated currency. In non-U.S. locations where the U.S. Dollar has been designated as the functional currency (based on an assessment of the economic circumstances of the foreign operation), local currency transaction gains and losses are included in net income. In non-U.S. locations where the local currency is the functional currency, assets and liabilities are translated at the rates of exchange on the balance sheet date, while income and expense items are translated at average rates of exchange during the year. The resulting gains or losses arising from the translation of accounts from the functional currency to the U.S. Dollar are included in “Accumulated other comprehensive loss” in the accompanying Combined Balance Sheets. We did not recognize any material gains or losses on foreign currency transactions or translations during the years ended December 31, 2013, 2012 or 2011.

Cash and cash equivalents include cash on hand, demand deposits with banks and all highly liquid investments with original maturities of three months or less. Our cash, cash equivalents and short-term investments are subject to potential credit risk, and certain of our cash accounts carry balances greater than federally insured limits. Cash and cash equivalents are primarily held by major banks or investment firms. Our cash management and investment policies restrict investments to lower risk, highly liquid securities and we perform periodic evaluations of the relative credit standing of the financial institutions with which we conduct business.

We estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability. Our valuation techniques require inputs that we categorize using a three-level hierarchy, from highest to lowest level of observable inputs, as follows: (1) unadjusted quoted prices for identical assets or liabilities in active markets (“Level 1”), (2) direct or indirect observable inputs, including quoted prices or other market data, for similar assets or liabilities in active markets or identical assets or liabilities in less active markets (“Level 2”) and (3) unobservable inputs that require significant judgment for which there is little or no market data (“Level 3”). When multiple input levels are required for a valuation, we categorize the entire fair value measurement according to the lowest level of input that is significant to the measurement even though we may have also utilized significant inputs that are more readily observable.

Our cash and cash equivalents, accounts receivable and accounts payable are by their nature short-term. As a result, the carrying values included in the accompanying Combined Balance Sheets approximate fair value.

We evaluate the impairment of property and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In addition, on an annual basis, we complete an impairment analysis on our rig fleet. An impairment loss on our property and equipment exists when the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Any impairment loss recognized represents the excess of the asset’s carrying value over the estimated fair value. As part of this analysis, we make assumptions and estimates regarding future market conditions. To the extent actual results do not meet our estimated assumptions for a given rig class, we may take an impairment loss in the future.

Deferred debt issuance costs are amortized through interest expense over the life of the debt securities.

Revenues generated from our dayrate-basis drilling contracts and labor contracts are recognized as services are performed and begin upon the contract commencement, as defined under the specified drilling or labor contract. Revenues from bonuses are recognized when earned.

It is typical, in our dayrate drilling contracts, to receive compensation for mobilization, equipment modification, or other activities prior to the commencement of the contract. These payments take either the form of a lump-sum payment or other daily compensation. We defer pre-contract compensation and related costs over the term of the initial contract period to which the compensation and costs relate. Upon completion of our drilling contracts, any demobilization revenues received are recognized as income, as are any related expenses.

Deferred revenues under drilling contracts totaled $21.9 million and $25.0 million at December 31, 2013 and 2012, respectively. Such amounts are included in either “Other current liabilities” or “Other liabilities” in our Combined Balance Sheets, based upon our expected time of recognition. Related expenses deferred under drilling contracts totaled $23.7 million at December 31, 2013 as compared to $38.0 million at December 31, 2012, and are included in either “Other current assets” or “Other assets” in our Combined Balance Sheets based upon our expected time of recognition.

We record reimbursements from customers for “out-of-pocket” expenses as revenues and the related direct cost as operating expenses.

We operate through various subsidiaries in numerous countries throughout the world including the United States. Consequently, we are subject to changes in tax laws, treaties or regulations or the interpretation or enforcement thereof in the U.S. or other jurisdictions in which we or any of our subsidiaries operate or are resident. Our income tax expense is based upon our interpretation of the tax laws in effect in various countries at the time that the expense was incurred. If the U.S. Internal Revenue Service (“IRS”) or other taxing authorities do not agree with our assessment of the effects of such laws, treaties and regulations, this could have a material adverse effect on us including the imposition of a higher effective tax rate on our worldwide earnings or a reclassification of the tax impact of our significant corporate restructuring transactions.

Income taxes include results of the operations of the standard specification drilling units. In instances where the operations of standard specification drilling units were included in the filing of a consolidated or combined return with high-spec units, an allocation of income taxes has been made.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Certain accounting policies involve judgments and uncertainties to such an extent that there is reasonable likelihood that materially different amounts could have been reported under different conditions, or if different assumptions had been used. We evaluate our estimates and assumptions on a regular basis. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates and assumptions used in preparation of our combined financial statements.

Certain amounts in prior periods have been reclassified to conform to the current year presentation.

In February 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-02, which amends FASB Accounting Standards Codification (“ASC”) Topic 220, “Comprehensive Income.” This amended guidance requires additional information about reclassification adjustments out of comprehensive income, including changes in comprehensive income balances by component and significant items reclassified out of comprehensive income. This guidance is effective for reporting periods beginning after December 15, 2012. The adoption of this guidance did not have a material impact on our financial condition, results of operations, cash flows or financial disclosures.

In March 2013, the FASB issued ASU No. 2013-05, which amends ASC Topic 830, “Foreign Currency Matters.” This ASU provides guidance on foreign currency translation adjustments when a parent entity ceases to have a controlling interest on a previously consolidated subsidiary or group of assets. The guidance is effective for fiscal years beginning on or after December 15, 2013. We are still evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures.

In July 2013, the FASB issued ASU No. 2013-11, which amends ASC Topic 740, “Taxes.” This ASU provides guidance on the presentation of tax benefits when a net operating loss carryforward or other tax credit carryforward exists. The guidance is effective for fiscal years beginning on or after December 15, 2013. We are still evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures.

Property and equipment, at cost, as of December 31, 2013 and 2012, consisted of the following:

Capital expenditures, including capitalized interest, totaled $366.4 million, $532.4 million, and $518.5 million for the years ended December 31, 2013, 2012, and 2011 respectively. Capitalized interest related to Noble debt has been included within property and equipment.

Interest capitalized related to Noble’s revolving credit facilities and commercial paper program (see Note 3, “Debt”) included in these combined financial statements was $5.9 million, $4.0 million, and $2.9 million for the years ended December 31, 2013, 2012, and 2011, respectively.

Noble currently has three separate credit facilities with an aggregate maximum available capacity of $2.9 billion (together, the “Credit Facilities”). During 2013, Noble undertook a series of transactions related to its Credit Facilities, which are summarized by the following:

In addition to the above transactions, Noble continues to maintain a $1.5 billion credit facility that matures in 2017.

The Credit Facilities provide Noble with the ability to issue up to $375 million in letters of credit in the aggregate. The issuance of letters of credit does not increase Noble’s borrowings outstanding under the Credit Facilities, but it does reduce the amount available. At December 31, 2013, Noble had no letters of credit issued under the Credit Facilities.

The covenants and events of default under the Credit Facilities are substantially similar, and each facility contains a covenant that limits Noble’s ratio of debt to total tangible capitalization, as defined in the Credit Facilities, to 0.60. At December 31, 2013, Noble’s ratio of debt to total tangible capitalization was approximately 0.38. Noble was in compliance with all covenants under the Credit Facilities as of December 31, 2013.

Noble provides a stock-based compensation plan that is granted and settled in stock of Noble. Certain Company employees participate in Noble’s company-wide stock-based compensation plan. The plan permits the granting of various types of awards including stock options and restricted stock units.

We are charged by Noble for stock-based compensation expense related to our rig-based employees. Noble also charges us for the allocated costs of certain non-rig-based employees of Noble (including stock-based compensation) who provide general and administrative services on our behalf. However, information included in this note is strictly limited to stock-based compensation associated with the rig-based employees (see Note 13, “Related Parties (Including Relationship with Parent and Corporate Allocations)” for total costs allocated to us by Noble).

Total stock-based compensation expense for our rig-based employees included in contract drilling expense for the years ended December 31, 2013, 2012 and 2011 was $5.0 million, $4.3 million and $4.1 million, respectively.

Noble awarded time-vested restricted stock units to our rig-based employees. The time-vested restricted stock awards generally vest over a three-year period. The time-vested restricted stock is valued on the date of award at Noble’s underlying stock price. The total compensation for stock units that ultimately vest is recognized over the service period.

A summary of the restricted unit awards for each of the three years ended December 31 is as follows:

A summary of the status of non-vested restricted units at December 31, 2013 and changes during the year ended December 31, 2013 is presented below:

During 2013, we determined that our FPSO, the Noble Seillean, was partially impaired as a result of our annual impairment test and the current market outlook for this unit. We estimated the fair value of this unit by considering both income and market-based valuation approaches utilizing statistics for comparable rigs (Level 2 fair value measurement). Based on these estimates, we recognized a charge of $40.1 million for the year ended December 31, 2013.

In 2011, we determined that our submersible rig fleet, consisting of two cold stacked rigs, was partially impaired due to the declining market outlook for drilling services for that rig type. We estimated the fair value of the rigs based on the salvage value of the rigs and a recent transaction involving a similar unit owned by a peer company (Level 2 fair value measurement). Based on these estimates, we recognized a charge of approximately $12.7 million for the year ended December 31, 2011. During 2013, we recorded an additional impairment charge of approximately $3.6 million on these rigs arising from the potential disposition of these assets to an unrelated third party. In January 2014, we completed the sale of the submersibles for $7.0 million.

During the third quarter of 2013, we completed the sale of the Noble Lewis Dugger for $61.0 million to an unrelated third party in Mexico. In connection with the sale, we recorded a pre-tax gain of approximately $35.6 million.

During the third quarter of 2013, Noble received $45.0 million related to the settlement of all claims against the former investors of FDR Holdings, Ltd., which Noble acquired in July 2010, relating to alleged breaches of various representations and warranties contained in the purchase agreement. A portion of the settlement related to standard-specification rigs. This portion, totaling $22.6 million, was pushed down to us, through an allocation, using the acquired rig values of the purchased rigs.

During the fourth quarter of 2012, we received a deposit of $1.8 million related to the potential sale of one of our drilling units to an unrelated third party. During the first quarter of 2013 negotiations led to the sale not being completed and the deposit was recognized as a gain.

During the second quarter of 2012, we received $4.9 million from the settlement of a claim relating to the Noble David Tinsley, which experienced a “punch-through” while being positioned on location in 2009.

In January 2011, we announced the signing of a Memorandum of Understanding (“MOU”) with Petróleo Brasileiro, S.A. (“Petrobras”) regarding operations in Brazil. Under the terms of the MOU, we agreed to substitute the Noble Phoenix, then under contract with Shell in Southeast Asia, for the Noble Muravlenko. In connection with the cancellation of the contract on the Noble Phoenix, we recognized a non-cash gain of $52.5 million during the first quarter of 2011, which represented the unamortized fair value of the in-place contract at acquisition. As a result of the substitution, we reached a decision not to proceed with the previously announced reliability upgrade to the Noble Muravlenko that was scheduled to take place in 2013, and therefore, incurred a non-cash charge of $32.6 million related to the termination of outstanding shipyard contracts. The substitution was completed during the fourth quarter of 2012.

We operate through various subsidiaries in numerous countries throughout the world, including the United States. Consequently, income taxes have been provided based on the laws and rates in effect in the countries in which operations are conducted, or in which we or our subsidiaries are considered resident for income tax purposes.

We recognize a valuation allowance for deferred tax assets when it is more-likely-than-not that the benefit from the deferred tax asset will not be realized. The amount of deferred tax assets considered realizable could increase or decrease in the near-term if estimates of future taxable income change. As of December 31, 2013, we had recorded a gross deferred tax asset of $29.5 million for net operating losses in Norway related to the Frontier acquisition. After considering a deferred tax liability of $20.8 million attributable to the excess of book basis over tax basis in assets, our net deferred tax asset in Norway was $8.7 million. We believe that it is more likely than not that the net deferred tax asset in Norway will not be realized, in part because we have transferred the ownership of several rigs, previously owned by our Norwegian subsidiaries, to subsidiaries in other jurisdictions. Accordingly, management recorded a valuation allowance of $8.7 million during 2013.

The following is a reconciliation of our reserve for uncertain tax positions, excluding interest and penalties:

The liabilities related to our reserve for uncertain tax positions are comprised of the following:

If these reserves of $36.5 million are not realized, the provision for income taxes will be reduced by $36.5 million.

We include, as a component of our “Income tax provision”, potential interest and penalties related to recognized tax contingencies within our global operations. Interest and penalties resulted in an income tax expense of $0.6 million in 2013, an income tax expense of $3.6 million in 2012 and an income tax expense of $1.4 million in 2011.

It is reasonably possible that our existing liabilities related to our reserve for uncertain tax positions may increase or decrease in the next twelve months primarily due to the completion of open audits or the expiration of statutes of limitation. However, we cannot reasonably estimate a range of changes in our existing liabilities due to various uncertainties, such as the unresolved nature of various audits.

We conduct business globally and, as a result, we file numerous income tax returns in the U.S. and non-U.S. jurisdictions. In the normal course of business we are subject to examination by taxing authorities throughout the world, including major jurisdictions such as Brazil, India, Mexico, Nigeria, Norway, Qatar, Switzerland, the United Kingdom and the United States. We are no longer subject to U.S. Federal income tax examinations for years before 2009 and non-U.S. income tax examinations for years before 2003.

The Company conducts business through entities incorporated in the Cayman Islands, the United Kingdom, and other countries. The Company is now based in the United Kingdom, which has a statutory rate of 23.25 percent. However, the income of our non-U.K. subsidiaries is not expected to be subject to U.K. corporate tax. A possible change in tax law in the United Kingdom would result in an increase in the effective tax rate on our U.K. operations. Prior to being based in the United Kingdom, the Company was based in Switzerland. Similar to the United Kingdom, the income of our non-Swiss subsidiaries was not subject to tax in Switzerland. The Cayman Islands does not impose a corporate income tax. For purposes of the carve-out financials, a reconciliation of tax rates outside of the Cayman Islands, Switzerland and the United Kingdom to our effective rate is shown below:

In 2013, we generated and fully utilized $7.7 million of U.S. foreign tax credits. In 2012, we generated and fully utilized $17.0 million of U.S. foreign tax credits. In 2011, we fully utilized our foreign tax credits of $10.3 million.

Deferred income taxes and the related dividend withholding taxes have not been provided on undistributed earnings of our subsidiaries. We consider such earnings to be permanently reinvested. Due to complexities in the tax laws and the manner of repatriation, it is not practicable to estimate the amount of deferred income taxes associated with these unremitted earnings. If such earnings were to be distributed, we would be subject to tax, which would have a material impact on our results of operations.

The Company periodically transfers its drilling units between entities included in these combined financial statements. For the drilling units which were subject to taxes on net income in a particular jurisdiction, the Company had previously recorded deferred taxes on taxable temporary differences. Where a transfer results in a drilling unit moving to a jurisdiction where it will no longer be subject to taxes on net income, any deferred tax liability is being amortized as a reduction in income tax expense over the remaining book life of the particular unit. This benefit is net of any tax cost associated with the transfer. The unamortized tax benefit associated with these transfers totaled $46.5 million and $49.1 million at December 31, 2013 and 2012, respectively, and is included in Other Liabilities in these combined balance sheets.

The market for our services is the offshore oil and gas industry, and our customers consist primarily of government-owned oil companies, major integrated oil companies and independent oil and gas producers. We perform ongoing credit evaluations of our customers and do not require material collateral. We maintain reserves for potential credit losses when necessary. Our results of operations and financial condition should be considered in light of the fluctuations in demand experienced by drilling contractors as changes in oil and gas producers’ expenditures and budgets occur. These fluctuations can impact our results of operations and financial condition as supply and demand factors directly affect utilization and dayrates, which are the primary determinants of our net cash provided by operating activities.

Revenues from Petróleos Mexicanos accounted for approximately 19 percent, 21 percent, and 18 percent of our combined operating revenues in 2013, 2012 and 2011, respectively. Revenues from Petrobras accounted for approximately 17 percent, 18 percent, and 23 percent of our combined operating revenues in 2013, 2012, and 2011, respectively. No other customer accounted for more than ten percent of our combined operating revenues in 2013, 2012 or 2011.

We are a defendant in certain claims, and litigation arising in the ordinary course of business, the resolution of which, in the opinion of management, will not be material to our financial position, results of operations or cash flows. There is inherent risk in any litigation or dispute and no assurance can be given as to the outcome of these claims.

During the second quarter of 2013, we reached an agreement with the Mexican tax authorities resolving certain previously disclosed tax assessments. This settlement removes potential contingent tax exposure of $502 million in Mexico for periods prior to 2007, which includes the assessments for years 2002 through 2005 of approximately $348 million, as well as settlement for 2006. The settlement of these assessments did not have a material impact on our consolidated financial statements.

Audit claims of approximately $281 million attributable to income, customs and other business taxes have been assessed against us. We have contested, or intend to contest, these assessments, including through litigation if necessary, and we believe the ultimate resolution, for which we have not made any accrual, will not have a material adverse effect on our consolidated financial statements. Tax authorities may issue additional assessments or pursue legal actions as a result of tax audits and we cannot predict or provide assurance as to the ultimate outcome of such assessments and legal actions.

We maintain certain insurance coverage against specified marine perils which includes physical damage and loss of hire. Damage caused by hurricanes has negatively impacted the energy insurance market, resulting in more restrictive and expensive coverage for U.S. named windstorm perils.

Although we maintain insurance in the geographic areas in which we operate, pollution, reservoir damage and environmental risks generally are not fully insurable. Our insurance policies and contractual rights to indemnity may not adequately cover our losses or may have exclusions of coverage for some losses. We do not have insurance coverage or rights to indemnity for all risks, including loss of hire insurance on most of the rigs in our fleet. Uninsured exposures may include expatriate activities prohibited by U.S. laws and regulations, radiation hazards, certain loss or damage to property on board our rigs and losses relating to shore-based terrorist acts or strikes. If a significant accident or other event occurs and is not fully covered by insurance or contractual indemnity, it could materially adversely affect our financial position, results of operations or cash flows. Additionally, there can be no assurance that those parties with contractual obligations to indemnify us will necessarily be financially able to indemnify us against all these risks.

We carry protection and indemnity insurance covering marine third party liability exposures, which also includes coverage for employer’s liability resulting from personal injury to our offshore drilling crews. Our protection and indemnity policy currently has a standard deductible of $10 million per occurrence, with maximum liability coverage of $750 million.

In connection with our capital expenditure program, we had outstanding commitments, including shipyard and purchase commitments of approximately $83.1 million at December 31, 2013.

We do not have any rigs currently operating in Nigeria. However, during the fourth quarter of 2007, our Nigerian subsidiary received letters from the Nigerian Maritime Administration and Safety Agency (“NIMASA”) seeking to collect a 2 percent surcharge on contract amounts under contracts performed by “vessels,” within the meaning of Nigeria’s cabotage laws, engaged in the Nigerian coastal shipping trade. Although we do not believe that these laws apply to our ownership of drilling units, NIMASA is seeking to apply a provision of the Nigerian cabotage laws (which became effective on May 1, 2004) to our offshore drilling units by considering these units to be “vessels” within the meaning of those laws and therefore subject to the surcharge, which is imposed only upon “vessels.” Our offshore drilling units are not engaged in the Nigerian coastal shipping trade and are not in our view “vessels” within the meaning of Nigeria’s cabotage laws. In January 2008, we filed an originating summons against NIMASA and the Minister of Transportation in the Federal High Court of Lagos, Nigeria seeking, among other things, a declaration that our drilling operations do not constitute “coastal trade” or “cabotage” within the meaning of Nigeria’s cabotage laws and that our offshore drilling units are not “vessels” within the meaning of those laws. In February 2009, NIMASA filed suit against us in the Federal High Court of Nigeria seeking collection of the cabotage surcharge with respect to one of our rigs. In August 2009, the court issued a favorable ruling in response to our originating summons stating that drilling operations do not fall within the cabotage laws and that drilling rigs are not vessels for purposes of those laws. The court also issued an injunction against the defendants prohibiting their interference with our drilling rigs or drilling operations. NIMASA appealed the court’s ruling, on procedural grounds, and the court dismissed NIMASA’s lawsuit filed against us in February 2009. In December 2013, the court of appeals ruled in favor of NIMASA and quashed the high court’s decision in our favor, although there is no adverse ruling against us with respect to the merits. We intend to appeal this latest decision and take all further appropriate legal action to resist the application of Nigeria’s cabotage laws to our drilling units. The outcome of any such legal action and the extent to which we may ultimately be responsible for the surcharge is uncertain. If it is ultimately determined that offshore drilling units constitute vessels within the meaning of the Nigerian cabotage laws, we may be required to pay the surcharge and comply with other aspects of the Nigerian cabotage laws, which could adversely affect future operations in Nigerian waters and require us to incur additional costs of compliance.

Under the Nigerian Industrial Training Fund Act of 2004, as amended, (the “Act”), Nigerian companies with five or more employees must contribute annually one percent of their payroll to the Industrial Training Fund (“ITF”) established under the Act to be used for the training of Nigerian nationals with a view towards generating a pool of indigenously trained manpower. We have not paid this amount on our expatriate workers employed by our non-Nigerian employment entity in the past as we did not believe the contribution obligation was applicable to them. In October 2012, we received a demand from the ITF for payments going back to 2004 and associated penalties in respect of these expatriate employees. In February 2013, the ITF filed suit seeking payment of these amounts. We do not believe that we owe the amount claimed. We have had discussions with the ITF to resolve the issue and do not believe the resolution of this matter will have a material adverse effect on our financial position or cash flows.

At December 31, 2013, we had letters of credit of $26.3 million and performance and temporary import bonds totaling $128.3 million supported by surety bonds. Certain of our subsidiaries issue guarantees related to the temporary importation of rigs or equipment imported into certain countries in which we operate. These guarantees are issued in-lieu of payment of customs, value added or similar taxes in those countries.

We report our contract drilling operations as a single reportable segment, Contract Drilling Services, which reflects how we manage our business, and the fact that all of our drilling fleet is dependent upon the worldwide oil industry. The mobile offshore drilling units comprising our offshore rig fleet operate in a single, global market for contract drilling services and are often redeployed globally due to changing demands of our customers, which consist largely of major non-U.S. and government owned/controlled oil and gas companies throughout the world. Our contract drilling services segment conducts contract drilling operations in the United States, Mexico, Brazil, North Sea, West Africa, Middle East, and India.

The following table presents revenues and identifiable assets by country based on the location of the service provided:

The net effect of changes in other assets and liabilities on cash flows from operating activities is as follows:

Note 13—Related Parties (Including Relationship with Parent and Corporate Allocations)

We have historically been managed in the normal course of business by Noble and its subsidiaries. Accordingly, certain shared costs have been allocated to us and are reflected as expenses in these financial statements. Management considers the allocation methodologies used to be reasonable and appropriate reflections of the related expenses attributable to us for purposes of the carve-out financial statements; however, the expenses reflected in our financial statements may not be indicative of the actual expenses that would have been incurred during the periods presented if we had operated as a separate stand-alone entity. In addition, the expenses reflected in the financial statements may not be indicative of expenses that will be incurred in the future by Paragon Offshore.

Allocated costs include Noble charges including, but not limited to: corporate accounting, human resources, government affairs, information technology, shared real estate expenses, treasury, legal, employee benefits and incentives (excluding allocated postretirement benefits described below in “Employee Benefit Plans”) and stock-based compensation (excluding direct employees discussed in Note 4, “Stock-Based Compensation Plans”). Allocated costs included in contract drilling services in the accompanying Combined Statements of Income totaled $146.8 million, $112.8 million, and $95.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. Allocated costs included in general, and administrative expenses in the accompanying Combined Statements of Income totaled $58.3 million, $52.9 million, and $55.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. The costs were allocated to us using various allocation inputs, such as head count, services rendered, and assets assigned to us.

Employees of the Company participate in several employee benefit plans sponsored by Noble. These plans are accounted for as multi-employer benefit plans in these combined financial statements and, accordingly, our Combined Balance Sheets do not reflect any assets or liabilities related to these plans. Our Combined Income Statement includes expense allocations for these benefits. We consider the expense allocation methodology and results to be reasonable for all periods presented.

Noble sponsors two U.S. noncontributory defined benefit pension plans: one covering salaried employees and the other covering hourly employees, whose initial date of employment are prior to August 31, 2004 (“qualified U.S. plans”), and three non-U.S. noncontributory defined benefit pension plans which cover certain Europe-based salaried, non-union employees. Pension benefit expense related to these plans included in the accompanying Combined Statements of Income for the years ended December 31, 2013, 2012 and 2011 totaled $11.2 million, $11.6 million and $8.3 million, respectively.

Noble sponsors a 401(k) defined contribution plan and a profit sharing plan, which covers employees who are not otherwise enrolled in the above defined benefit plans. Other postretirement benefit expense related to these plans included in the accompanying Combined Statements of Income for the years ended December 31, 2013, 2012 and 2011 totaled $4.8 million, $3.0 million and $2.5 million, respectively.

There have been no subsequent events noted through March 7, 2014, the date of the financial statements, which require recognition or disclosure in the financial statements.

Noble Standard-Spec Business (the “Company”, “We”, or “Predecessor”) comprises the standard specification drilling fleet and related operations of Noble Corporation Plc (“Noble” or “Parent”). We are an offshore drilling contractor for the oil and gas industry with global operations. In addition, we conduct contract labor services in Canada.

Noble’s fleet includes two types of drilling units: standard-specification (“standard-spec”) and high-specification (“high-spec”) drilling units. Factors in determining classification between the two include, but are not limited to, the following: age, technological capabilities, size, water depth and load capacities. Standard specification rigs are generally 15 or more years old, have a “hook load,” or derrick hoisting capacity, of less than two million pounds and have drilling equipment operated by mechanical, rather than electronic, means.

The accompanying financial statements have been prepared in anticipation of Noble’s plan to separate certain of our assets and entities into an independent, publicly-traded company, Paragon Offshore plc (“Paragon Offshore” or “Successor”). The Predecessor’s fleet currently includes 45 mobile offshore drilling units, which consist of four semisubmersibles, five drillships, 36 jackups, and one floating production storage and offloading unit (“FPSO”), as well as the Hibernia platform operations. In July 2013, Noble sold the Noble Lewis Dugger, a standard specification jackup, to an unrelated third party. In January 2014, Noble sold the two standard specification submersibles, the Noble Joe Alford and the Noble Lester Pettus, to an unrelated third party. The historical results for these rigs are included in our historical results, but these rigs are not included in the current fleet count.

Noble intends to transfer Predecessor assets, excluding two jackups and one semisubmersible currently owned by Noble, to Paragon Offshore. The Separation of the standard specification business will be effected through the distribution of 100 percent of the shares of Paragon Offshore to Noble shareholders during the third quarter of 2014 in a spin-off that would be tax-free to shareholders. The Separation is subject to approval by Noble shareholders, which is being sought at the annual general meeting scheduled to be held in June 2014, as well as final approval by our Board of Directors of the actual dividend and other customary matters.

Noble maintains benefit and stock-based compensation programs at the corporate level. To the extent that Company employees participate in these programs, we were allocated a portion of the associated expenses. However, the Combined Balance Sheets do not include any Noble net benefit plan obligations or Noble outstanding equity related to the stock-based compensation programs. See Note 11, “Related Parties (Including Relationship with Parent and Corporate Allocations),” for a further description of these stock-based compensation and other benefit programs.

Net parent investment, which includes retained earnings, represents Noble’s interest in the recorded net assets of the Company. All transactions between the Company and Noble have been identified in the accompanying Combined Statements of Changes in Equity as “Net transfers to Parent”.

Property and equipment, at cost, as of March 31, 2014 and December 31, 2013, consisted of the following:

Capital expenditures, including capitalized interest, totaled $42.5 million and $101.3 million for the three months ended March 31, 2014 and 2013, respectively. Capitalized interest related to Noble debt has been included within property and equipment.

Interest expense capitalized related to Noble’s revolving credit facilities and commercial paper program (see Note 3, “Debt”) included in these combined financial statements was $1.1 million and $0.9 million for the three months ended March 31, 2014 and 2013, respectively.

Long-term debt consists of the following at March 31, 2014 and December 31, 2013:

Noble currently has three separate credit facilities with an aggregate maximum available capacity of $2.9 billion (together referred to as the “Credit Facilities”). Noble has established a commercial paper program, which allows Noble to issue up to $2.7 billion in unsecured commercial paper notes. Amounts issued under the commercial paper program are supported by the unused capacity under Noble’s Credit Facilities and, therefore, are classified as long-term on Noble’s Consolidated Balance Sheet. The outstanding amounts of commercial paper reduce availability under Noble’s Credit Facilities.

The Credit Facilities provide Noble with the ability to issue up to $375 million in letters of credit in the aggregate. The issuance of letters of credit under the Credit Facilities reduces the amount available for borrowing. At March 31, 2014, Noble had no letters of credit issued under the Credit Facilities.

The covenants and events of default under the Credit Facilities are substantially similar, and each facility contains a covenant that limits Noble’s ratio of debt to total tangible capitalization, as defined in the Credit Facilities, to 0.60. At March 31, 2014, Noble’s ratio of debt to total tangible capitalization was approximately 0.38. Noble was in compliance with all covenants under the Credit Facilities as of March 31, 2014.

During the fourth quarter of 2012, we received a deposit of $1.8 million related to the potential sale of one of our cold-stacked drilling units to an unrelated third party. During the first quarter of 2013 negotiations led to the sale not being completed and the deposit was recognized as a gain.

We operate through various subsidiaries in numerous countries throughout the world. Consequently, income taxes have been based on the laws and rates in effect in the countries in which operations are conducted, or in which we or our subsidiaries are considered resident for income tax purposes.

At December 31, 2013, the reserve for uncertain tax positions totaled $36.5 million (net of related tax benefits of $6.1 million). At March 31, 2014, the reserves for uncertain tax positions totaled $34.0 million (net of related tax benefits of $6.3 million), and if not utilized, would reduce the provision for income taxes by $34.0 million.

The Company periodically transfers its drilling rigs between related entities included in these combined financial statements. The unamortized tax benefit associated with these transfers totaled $45.7 million and $46.5 million at March 31, 2014 and December 31, 2013, respectively, and is included in “Other liabilities” in these Combined Balance Sheets.

Deferred revenues from drilling contracts totaled $21.4 million at March 31, 2014 as compared to $21.9 million at December 31, 2013. Such amounts are included in either “Other current liabilities” or “Other liabilities” in our Combined Balance Sheets, based upon our expected time of recognition.

During the fourth quarter of 2007, our Nigerian subsidiary received letters from the Nigerian Maritime Administration and Safety Agency, or NIMASA, seeking to collect a 2 percent surcharge on contract amounts under contracts performed by “vessels,” within the meaning of Nigeria’s cabotage laws, engaged in the Nigerian coastal shipping trade. Although we do not believe that these laws apply to our ownership of drilling rigs, NIMASA is seeking to apply a provision of the Nigerian cabotage laws (which became effective on May 1, 2004) to our offshore drilling rigs by considering these rigs to be “vessels” within the meaning of those laws and therefore subject to the surcharge, which is imposed only upon “vessels.” Our offshore drilling rigs are not engaged in the Nigerian coastal shipping trade and are not in our view “vessels” within the meaning of Nigeria’s cabotage laws. In January 2008, we filed an originating summons against NIMASA and the Minister of Transportation in the Federal High Court of Lagos, Nigeria seeking, among other things, a declaration that our drilling operations do not constitute “coastal trade” or “cabotage” within the meaning of Nigeria’s cabotage laws and that our offshore drilling rigs are not “vessels” within the meaning of those laws. In February 2009, NIMASA filed suit against us in the Federal High Court of Nigeria seeking collection of the cabotage surcharge with respect to one of our rigs. In August 2009, the court issued a favorable ruling in response to our originating summons stating that drilling operations do not fall within the cabotage laws and that drilling rigs are not vessels for purposes of those laws. The court also issued an injunction against the defendants prohibiting their interference with our drilling rigs or drilling operations. NIMASA appealed the court’s ruling on procedural grounds, and the court dismissed NIMASA’s lawsuit filed against us in February 2009. In December 2013, the court of appeals ruled in favor of NIMASA and quashed the High Court’s decision in our favor, although there is no adverse ruling against us with respect to the merits. We intend to appeal this latest decision and take further appropriate legal action to resist the application of Nigeria’s cabotage laws to our drilling rigs. The outcome of any such legal action and the extent to which we may ultimately be responsible for the surcharge is uncertain. If it is ultimately determined that offshore drilling rigs constitute vessels within the meaning of the Nigerian cabotage laws, we may be required to pay the surcharge and comply with other aspects of the Nigerian cabotage laws, which could adversely affect future operations in Nigerian waters and require us to incur additional costs of compliance.

Under the Nigerian Industrial Training Fund Act of 2004, as amended (“the Act”), Nigerian companies with five or more employees must contribute annually 1 percent of their payroll to the Industrial Training Fund, or ITF, established under the Act to be used for the training of Nigerian nationals with a view towards generating a pool of indigenously trained manpower. We have not paid this amount on our expatriate workers employed by our non-Nigerian employment entity in the past as we did not believe the contribution obligation was applicable to them. In October 2012, we received a demand from the ITF for payments going back to 2004 and associated penalties in respect of these expatriate employees. In February 2013, the ITF filed suit seeking payment of these amounts. We do not believe that we owe the amount claimed. We have had discussions with the ITF to resolve the issue and do not believe the resolution of this matter will have a material adverse effect on our financial position, results of operations or cash flows.

Audit claims of approximately $273.2 million attributable to income, customs and other business taxes have been assessed against us. We have contested, or intend to contest, these assessments, including through litigation if necessary, and we believe the ultimate resolution, for which we have not made any accrual, will not have a

material adverse effect on our combined financial statements. Tax authorities may issue additional assessments or pursue legal actions as a result of tax audits and we cannot predict or provide assurance as to the ultimate outcome of such assessments and legal actions.

Although we maintain insurance in the geographic areas in which we operate, pollution, reservoir damage and environmental risks generally are not fully insurable. Our insurance policies and contractual rights to indemnity may not adequately cover our losses or may have exclusions of coverage for some losses. We do not have insurance coverage or rights to indemnity for all risks, including loss of hire insurance on most of the rigs in our fleet. Uninsured exposures may include expatriate activities prohibited by U.S. laws and regulations, radiation hazards, certain loss or damage to property on board our rigs and losses relating to shore-based terrorist acts or strikes. If a significant accident or other event occurs and is not fully covered by insurance or contractual indemnity, it could materially adversely affect our financial position, results of operations or cash flows. Additionally, there can be no assurance that those parties with contractual obligations to indemnify us will necessarily be financially able to indemnify us against all these risks.

In connection with our capital expenditure program, we had outstanding commitments, including shipyard and purchase commitments of approximately $67.6 million at March 31, 2014.

At March 31, 2014, we had letters of credit of $23.7 million and performance and temporary import bonds totaling $116.3 million supported by surety bonds outstanding. Certain of our subsidiaries issue guarantees to the temporary import status of rigs or equipment imported into certain countries in which we operate. These guarantees are issued in-lieu of payment of custom, value added or similar taxes in those countries.

within annual periods beginning on or after December 15, 2014. We are still evaluating what impact, if any, the adoption of this guidance will have on our financial condition, results of operations, cash flows or financial disclosures.

The net effect of changes in other assets and liabilities on cash flows from operating activities is as follows:

Note 11—Related Parties (Including Relationship with Parent and Corporate Allocations)

Allocated costs include Noble charges including, but not limited to: corporate accounting, human resources, government affairs, information technology, shared real estate expenses, treasury, legal, employee benefits and incentives (excluding allocated postretirement benefits described below in “Employee Benefit Plans,”) and stock-based compensation. Allocated costs included in contract drilling services in the accompanying Combined Statements of Income totaled $34.5 million for the three months ended March 31, 2014 and 2013. Allocated costs included in general, and administrative expenses in the accompanying Combined Statements of Income totaled $12.4 million and $13.7 million for the three months ended March 31, 2014 and 2013, respectively. The costs were allocated to us using various allocation inputs, such as head count, services rendered, and assets assigned to us.

Europe-based salaried, non-union employees. Pension benefit expense related to these plans included in the accompanying Combined Statements of Income for the three months ended March 31, 2014 and 2013 totaled $1.7 million and $2.9 million, respectively.

Noble sponsors a 401(k) defined contribution plan and a profit sharing plan, which covers employees who are not otherwise enrolled in the above defined benefit plans. Other postretirement benefit expense related to these plans included in the accompanying Combined Statements of Income for the three months ended March 31, 2014 and 2013 totaled $1.1 million and $1.4 million, respectively.

There have been no subsequent events noted through May 23, 2014, the date of the financial statements, which require recognition or disclosure in the financial statements.

In our opinion, the accompanying balance sheet presents fairly, in all material respects, the financial position of Paragon Offshore Limited at April 30, 2014 in conformity with accounting principles generally accepted in the United States of America. The balance sheet is the responsibility of the Company’s management. Our responsibility is to express an opinion on the balance sheet based on our audit. We conducted our audit of this statement in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet, assessing the accounting principles used and significant estimates made by management, and evaluating the overall balance sheet presentation. We believe that our audit of the balance sheet provides a reasonable basis for our opinion.

Noble Spinco Limited (“Noble Spinco”), a limited corporation, was formed on December 13, 2013 under the laws of England and Wales, and was an indirect, wholly-owned subsidiary of Noble Corporation plc (“Noble”). On February 13, 2014, Noble Spinco changed its name to Paragon Offshore Limited (“Paragon Offshore”). Paragon Offshore presently has not conducted operations and is reliant on Noble for all funding requirements.

Following the Separation, Noble intends to distribute its shares of Paragon Offshore plc to Noble shareholders in a spin-off. The distribution of Paragon Offshore plc shares by Noble is expected to occur in the second half of 2014.

As part of the Separation, Paragon Offshore expects to enter into both a master separation agreement and a tax sharing agreement whereby certain assets and liabilities of Noble’s standard-spec fleet will be transferred to Paragon Offshore entities in return for intercompany debt owed to Noble. The intercompany debt will be settled through the proceeds from the debt financings noted above.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Certain accounting policies involve judgments and uncertainties to such an extent that there is reasonable likelihood that materially different amounts could have been reported under different conditions, or if different assumptions had been used. Estimates and assumptions are evaluated on a regular basis. Estimates are based on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates and assumptions used in preparation of these consolidated financial statements.

Paragon Offshore was formed through the issuance of two $1 par value ordinary shares to a subsidiary of Noble in return for an intercompany receivable. As the underlying transaction was not for cash, the receivable from Noble is shown as a reduction of equity on the April 30, 2014 balance sheet.

We rely upon Noble for certain administrative and purchasing functions for Noble Spinco. As part of this relationship, we maintain certain payables with Noble. As of April 30, 2014, we had $1,280,750 related to rating agency fees in connection with our expected debt issuance and $518,503 related to registration fees in “Related party accounts payables.” These costs are accumulated within “Other assets.”

There have been no subsequent events noted through May 23, 2014, the date of the financial statements, which require recognition or disclosure in the financial statements.


	(unaudited) March 31, 2014
	Predecessor Actual			Paragon Offshore Pro Forma	Paragon Offshore Pro Forma As Adjusted
	(In thousands, except share amounts)
Cash and cash equivalents	$	32,225

Indebtedness:
Long-term debt (1)	$	1,983,543
Intercompany debt (2)		—

Total indebtedness	$	1,983,543

Equity:
Net parent investment	$	1,583,572
Ordinary shares (nominal value $ per share; shares issued and outstanding)		—
Accumulated other comprehensive loss		(42	)

Total equity		1,583,530

Total capitalization	$	3,567,073


	Predecessor Historical			Excluded or disposed standard-spec assets			Pre-financing subtotal			Financing adjustments	Separation adjustments	Paragon Offshore Pro Forma
				Note 1						Note 2	Note 3
ASSETS
Current assets
Cash and cash equivalents	$	32,225		$	—		$	32,225		$	$	$
Accounts receivable		353,933			(30,915	)		323,018
Prepaid and other current assets		65,590			(5,079	)		60,511

Total current assets		451,748			(35,994	)		415,754

Property and equipment, at cost		6,103,022			(685,153	)		5,417,869
Accumulated depreciation		(2,698,240	)		196,914			(2,501,326	)

Property and equipment, net		3,404,782			(488,239	)		2,916,543

Other assets		74,392			(15,275	)		59,117

Total assets	$	3,930,922		$	(539,508	)	$	3,391,414		$	$	$

LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	94,908		$	(6,895	)	$	88,013		$	$	$
Accrued payroll and related costs		44,699			(4,385	)		40,314
Other current liabilities		40,028			(187	)		39,841

Total current liabilities		179,635			(11,467	)		168,168

Long-term debt		1,983,543			—			1,983,543
Other liabilities		184,214			(2,016	)		182,198

Total liabilities		2,347,392			(13,483	)		2,333,909

Commitments and contingencies
Shareholders’ equity
Net parent investment		1,583,572			(526,025	)		1,057,547
Shareholders’ equity		—			—			—
Accumulated other comprehensive loss		(42	)		—			(42	)

Total equity		1,583,530			(526,025	)		1,057,505

Total liabilities and equity	$	3,930,922		$	(539,508	)	$	3,391,414		$	$	$


	Predecessor Historical			Excluded or disposed standard-spec assets			Pre-financing subtotal			Financing adjustments		Separation adjustments		Paragon Offshore Pro Forma
				Note 1						Note 2		Note 3
Operating revenues
Contract drilling services	$	491,963		$	(56,295	)	$	435,668		$	—	$	—	$	435,668
Reimbursables		14,416			(2,313	)		12,103			—		—		12,103
Labor contract drilling services		8,211			—			8,211			—		—		8,211

		514,590			(58,608	)		455,982			—		—		455,982

Operating costs and expenses
Contract drilling services		226,462			(17,608	)		208,854			—		—		208,854
Reimbursables		10,625			(1,523	)		9,102			—		—		9,102
Labor contract drilling services		6,213			—			6,213			—		—		6,213
Depreciation and amortization		110,584			(11,026	)		99,558			—		—		99,558
General and administrative		13,245			(1,279	)		11,966			—		—		11,966

		367,129			(31,436	)		335,693			—		—		335,693

Operating income		147,461			(27,172	)		120,289			—		—		120,289

Other income (expense)
Interest expense, net of amount capitalized		(3,300	)		—			(3,300	)
Interest income and other, net		187			—			187

Income before income taxes		144,348			(27,172	)		117,176
Income tax provision		(19,782	)		1,830			(17,952	)

Net income	$	124,566		$	(25,342	)	$	99,224		$		$		$

Net income per share
Basic		N/A			N/A			N/A		$		$		$
Diluted		N/A			N/A			N/A
Weighted-average shares outstanding
Basic		N/A			N/A			N/A
Diluted		N/A			N/A			N/A


	Predecessor Historical			Excluded or disposed standard- spec assets			Pre- financing subtotal			Financing adjustments		Separation adjustments		Paragon Offshore Pro Forma
				Note 1						Note 2		Note 3
Operating revenues
Contract drilling services	$	1,807,952		$	(192,626	)	$	1,615,326		$	—	$	—	$	1,615,326
Reimbursables		49,810			(4,227	)		45,583			—		—		45,583
Labor contract drilling services		35,146			—			35,146							35,146
Other revenues		94			—			94			—		—		94

		1,893,002			(196,853	)		1,696,149			—		—		1,696,149

Operating costs and expenses
Contract drilling services		914,702			(79,258	)		835,444			—		—		835,444
Reimbursables		38,341			(3,201	)		35,140			—		—		35,140
Labor contract drilling services		24,333			—			24,333			—		—		24,333
Depreciation and amortization		413,305			(46,001	)		367,304			—		—		367,304
General and administrative		64,907			(6,477	)		58,430			—		—		58,430
Loss on impairment		43,688			(3,585	)		40,103			—		—		40,108
Gain on disposal of assets, net		(35,646	)		35,646			—			—		—		—
Gain on contract settlements/extinguishments, net		(24,373	)		8,191			(16,182	)		—		—		(16,182	)

		1,439,257			(94,685	)		1,344,572			—		—		1,344,572

Operating income		453,745			(102,168	)		351,577			—		—		351,577

Other income (expense)
Interest expense, net of amount capitalized		(5,938	)		—			(5,938	)
Interest income and other, net		(1,897	)		(409	)		(2,306	)

Income before income taxes		445,910			(102,577	)		343,333
Income tax provision		(85,605	)		14,362			(71,243	)

Net income	$	360,305		$	(88,215	)	$	272,090		$		$		$

Net income per share
Basic		N/A			N/A			N/A		$		$		$
Diluted		N/A			N/A			N/A
Weighted-average shares outstanding
Basic		N/A			N/A			N/A
Diluted		N/A			N/A			N/A


	Total		Year Ended December 31,
	Total		2014*			2015			2016			2017			2018
	(In millions)
Floaters (1)	$	1,262	$	458		$	439		$	254		$	111		$	—
Jackups (2)		1,392		791			499			100			2			—

Total (3) (4)	$	2,654		1,249		$	938		$	354		$	113		$	—

Percent of available days committed (5)				69	%		35	%		10	%		2	%		—	%


	Page
QUESTIONS AND ANSWERS ABOUT THE SPIN-OFF		7

SUMMARY		13

SUMMARY HISTORICAL AND PRO FORMA FINANCIAL DATA		25

RISK FACTORS		28

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS		53

THE SPIN-OFF		54

CAPITALIZATION		63

DIVIDEND POLICY		64

UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS		65

SELECTED HISTORICAL COMBINED FINANCIAL DATA		72

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		74

INDUSTRY		91

BUSINESS		96

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS		110

MANAGEMENT		115

EXECUTIVE COMPENSATION		120

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT		142

DESCRIPTION OF SHARE CAPITAL		143

DESCRIPTION OF CERTAIN INDEBTEDNESS		150

WHERE YOU CAN FIND MORE INFORMATION		151

INDEX TO FINANCIAL STATEMENTS		F-1


	Average Rig Utilization (1)						Operating Days (2)							Average Dayrates
	2014			2013			2014		2013		% Change			2014		2013		% Change
Jackups		83	%		92	%		2,701		3,058		-12	%	$	112,340	$	97,730		15	%
Floaters		78	%		68	%		630		552		14	%		299,234		243,754		23	%
Other		0	%		0	%		—		—		0	%		—		—		0	%

Total		82	%		87	%		3,331		3,610		-8	%	$	147,687	$	120,063		23	%


	2014		2013			Change
	2014		2013			$			%
	(unaudited)
Operating revenues:
Contract drilling services	$	491,963	$	433,411		$	58,552			14	%
Reimbursables (1)		13,896		11,414			2,482			22	%

	$	505,859	$	444,825		$	61,034			14	%

Operating costs and expenses:
Contract drilling services	$	226,462	$	224,843		$	1,619			1	%
Reimbursables (1)		10,137		8,093			2,044			25	%
Depreciation and amortization		110,563		98,685			11,878			12	%
General and administrative		13,036		15,147			(2,111	)		-14	%
Gain on contract settlements/extinguishments		—		(1,800	)		1,800			*	*

		360,198		344,968			15,230			4	%

Operating income	$	145,661	$	99,857		$	45,804			46	%


	Average Fleet Utilization (1)						Operating Days (2)							Average Dayrates
	2012			2011			2012		2011		% Change			2012		2011		% Change
Jackups		81	%		77	%		10,985		10,373		6	%	$	88,120	$	79,257		11	%
Floaters		62	%		61	%		2,030		2,014		1	%		236,767		233,052		2	%
Other units		0	%		0	%		—		—					—		—

Total		73	%		69	%		13,015		12,387		5	%	$	111,303	$	104,261		7	%


Jackups
Name	Location	Water Depth (1)	Year Built/ Rebuilt	Status
Noble Bill Jennings	Mexico	390	1975/1997	Active
Noble Eddie Paul	Mexico	390	1976/1995	Active
Noble Leonard Jones	Mexico	390	1972/1998	Active
Noble Julie Robertson	UK	390	1981/2001	Active
Noble Al White	UK	360	1982/2005	Active
Noble Roy Rhodes	UAE	300	1979/2009	Active
Noble Byron Welliver	UK	300	1982/ -	Active
Noble Charlie Yester	UAE	300	1980/ -	Active
Noble Ed Holt	India	300	1981/2003	Active
Noble Gene Rosser	Mexico	300	1977/1996	Active
Noble George McLeod	Malaysia	300	1981/1995	Active
Noble Gus Androes	Qatar	300	1982/2004	Active
Noble Harvey Duhaney	Qatar	300	1976/2001	Active
Noble Jimmy Puckett	Qatar	300	1982/2002	Active
Noble John Sandifer	Mexico	300	1975/1995	Active
Noble Johnnie Hoffman	Mexico	300	1976/1993	Active
Noble Kenneth Delaney	India	300	1983/1998	Active
Noble Percy Johns	Cameroon	300	1981/1995	Active
Noble Roy Butler	Mexico	300	1982/1998	Active
Noble Sam Noble	Mexico	300	1982/ -	Active
Noble Tommy Craighead	Benin	300	1982/2003	Active
Noble Carl Norberg	Mexico	250	1976/2003	Active
Noble Chuck Syring	Qatar	250	1976/1996	Active
Noble Earl Frederickson	Mexico	250	1979/1999	Active
Noble Ed Noble	Cameroon	250	1984/2003	Active
Noble George Sauvageau	Germany	250	1981/ -	Active
Noble Lloyd Noble	Cameroon	250	1983/1990	Active
Noble Tom Jobe	Mexico	250	1982/ -	Active
Noble Lynda Bossler	Netherlands	250	1982/ -	Active
Noble Piet van Ede	Netherlands	250	1982/ -	Active
Noble Ronald Hoope	Netherlands	250	1982/ -	Active
Dhabi II	UAE	150	1982/2006	Active
Noble Dick Favor	UAE	150	1982/2004	Active
Noble Don Walker	Cameroon	150	1982/1992	Cold Stacked


Semisubmersibles
Name	Location	Water Depth (1)	Year Built/ Rebuilt	Status
Noble Therald Martin	Brazil	4,000	1977/2004	Active
Noble Ton van Langeveld	UK	1,500	1979/2000	Active
Noble Lorris Bouzigard	USA	4,000	1975/2003	Cold Stacked

Drillships
Name	Location	Water Depth (1)	Year Built/ Rebuilt	Status
Noble Roger Eason	Brazil	7,200	1977/2013	Active
Noble Leo Segerius	Brazil	5,600	1981/2012	Active
Noble Phoenix	Brazil	5,000	1979/2009	Active
Noble Duchess	India	1,500	1975/2012	Active
Noble Muravlenko	USA	4,900	1982/1997	Cold Stacked

Other Assets
Name	Location	Water Depth (1)	Year Built/ Rebuilt	Status
Hibernia Platform (labor contract)	Canada	N/A	N/A	Active
Noble Seillean (FPSO)	USA	6,500	1989/2008	Cold Stacked


Name	Age	Position/Title
Randall D. Stilley	60	President and Chief Executive Officer
Steven A. Manz	48	Senior Vice President and Chief Financial Officer
William C. Yester	63	Senior Vice President—Operations
Lee M. Ahlstrom	46	Senior Vice President—Investor Relations, Strategy and Planning
Andrew W. Tietz	47	Senior Vice President—Marketing and Contracts
Todd D. Strickler	36	Vice President, General Counsel and Corporate Secretary
Luis A. Jimenez	64	Vice President—Administration
Julie J. Robertson	58	Director


	Composition	Uses
2013 Peer Group	Atwood Oceanics, Inc. Cameron International Corp* Diamond Offshore Drilling, Inc. Ensco plc. FMC Technologies Inc. Helmerich & Payne, Inc.* National Oilwell Varco, Inc. Oceaneering International, Inc. Oil States International, Inc.* Patterson-UTI Energy, Inc.* Rowan Companies, Inc. Superior Energy Services, Inc.* Transocean Ltd. Weatherford International Ltd. *added in 2013 as described below	• Benchmark for comparing each component of compensation program in 2013 and 2014 • PVRSU performance achievement for awards made in 2013 and 2014

2012 Peer Group	Atwood Oceanics, Inc. Baker Hughes Inc. Diamond Offshore Drilling, Inc. Ensco plc. FMC Technologies Inc. Halliburton Company Nabors Industries Ltd. National Oilwell Varco, Inc. Oceaneering International, Inc. Rowan Companies, Inc. Schlumberger Ltd. Seadrill Limited Transocean Ltd. Weatherford International Ltd. removed in 2013 as described below	• Benchmark for comparing each component of compensation program in 2012 • PVRSU performance achievement for awards made prior to 2013


Purpose		To tie annual cash bonuses directly to specific annual financial and operating goals, accomplishment of team and individual objectives, and other key accomplishments

Plan funding		The aggregate funding of the STIP is determined based on EBITDA performance relative to target.

Target awards		For our Named Executive Officers, 50 percent of base salary to 55 percent of base salary, with the latter target award set only for Noble’s CEO.

Potential range of awards		For our Named Executive Officers, zero to 110 percent of base salary for the Named Executive Officer with the highest target award and from zero to 100 percent of base salary for the named executive officer with the lowest target award.

Components		(1) Performance (EBITDA and safety results) (50%) and (2) Achievement of Goals (50%)


TSR Relative to the Peer Group		Percentage of Maximum PVRSUs Vesting (1)
90%ile and greater (maximum)		100%
75%ile (above target)		75%
51%ile (target)		50%
25%ile (threshold)		25%
Below 25%ile (below threshold)		0%


Performance Cycle	Vesting Date	Performance Measure	Percent Vested			Percent Forfeited
2010-2012	February 2013	TSR relative to 2012 Peer Group (as comprised at YE 2012)		0	%		100	%

2011-2013	February 2014	TSR relative to 2012 Peer Group (as comprised at YE 2012)		45.34	%		54.66	%


Plan	Description and Eligibility	Benefits and Vesting
401(k) Savings Plan	Qualified plan that enables qualified employees, including the named executive officers, to save for retirement through a tax-advantaged combination of employee and Company contributions.	Matched at the rate of $0.70 to $1.00 per $1.00 (up to 6% of base pay) depending on years of service. Fully vested after three years of service or upon retirement, death or disability.

401(k) Savings Restoration Plan	Unfunded, nonqualified employee benefit plans under which highly compensated employees may defer compensation in excess of 401(k) plan limits.	Matching and vesting provisions mirror 401(k) Savings Plan to the extent an employee is prohibited from participating in the 401(k) Savings Plan

Profit Sharing Plan	Qualified defined contribution plan. Available to employees hired after August 1, 2004 who do not participate in the Salaried Employees’ Retirement Plan.	Company made annual discretionary contribution of 3.0% of base pay for 2013. Fully vested after three years of service or upon retirement, death or disability.

Retirement Plan and Retirement Restoration Plan	Qualified defined benefit pension plan. Available to participants originally hired on or before July 31, 2004.	Benefits are determined by years of service and average monthly compensation. Eligible compensation in excess of IRS annual compensation limit for a given year is considered in the Retirement Restoration Plan.


Position	Minimum Ownership (Multiple of Base Salary)
Chief Executive Officer		5.0 times
Executive Vice President and Senior Vice Presidents		4.0 times


Name and Principal Position	Year		Salary		Bonus (1)		Stock Awards (2)		Option Awards (2)		Non-Equity Incentive Plan Compensation (1)		Change in Pension Value and Non- Qualified Deferred Compensation Earnings (3)			All Other Compensation (4)			Total
Lee M. Ahlstrom		2013	$	337,500		—	$	558,392		—	$	230,000		—		$	448,359	(5)	$	1,574,251
Senior Vice President – Investor Relations, Strategy and Planning

Andrew W. Tietz		2013	$	271,917		—	$	335,017		—	$	195,000		—		$	48,720	(6)	$	850,654
Senior Vice President – Marketing and Contracts

William C. Yester		2013	$	309,167		—	$	446,659		—	$	250,000	$	(38,225	)	$	531,260	(7)	$	1,498,861
Senior Vice President – Operations


Name	Year		Housing/ Auto Allowance *		Foreign Service Premium		Resident Area Allowance		Reimbursement of School Fees *		Moving Expenses		Foreign Tax Payment *
Lee M. Ahlstrom		2013	$	79,392	$	23,211	$	15,428	$	6,318	$	47,534	$	208,733
William C. Yester		2013	$	176,875	$	45,333	$	25,750		—	$	3,582	$	212,442


Name	Grant Date		Estimated Possible Payouts Under Non-Equity Incentive Plan Awards (1)						Estimated Future Payouts Under Equity Incentive Plan Awards (2)						All Other Stock Awards: Number of Shares of Stock or Units (#) (3)		All Other Option Awards: Number of Securities Underlying Options (#) (4)		Exercise or Base Price of Option Awards ($/Sh) (4)		Grant Date Fair Value of Stock and Option Awards (5)
Name	Grant Date		Threshold		Target		Maximum		Threshold (#)		Target (#)		Maximum (#)						Exercise or Base Price of Option Awards ($/Sh) (4)		Grant Date Fair Value of Stock and Option Awards (5)
Lee M. Ahlstrom		2/1/13	$	85,000	$	170,000	$	340,000		3,056		6,112		12,224		6,112		—		—	$	558,392
Andrew W. Tietz		2/1/13	$	68,250	$	136,500	$	273,000		1,834		3,667		7,334		3,667		—		—	$	335,017
William C. Yester		2/1/13	$	85,250	$	170,500	$	341,000		2,445		4,889		9,778		4,889		—		—	$	446,659


	Option Awards (1)									Stock Awards
Name	Number of Securities Underlying Unexercised Options (#) Exercisable		Number of Securities Underlying Unexercised Options (#) Unexercisable			Option Exercise Price		Option Expiration Date		Number of Shares or Units of Stock That Have Not Vested (#) (2)			Market Value of Shares or Units of Stock That Have Not Vested (3)		Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) (4)			Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (3)
Lee M. Ahlstrom		1,736		3,473	(5)	$	36,815		2/3/22		10,889	(7)	$	408,011		13,671	(10)	$	512,252
		3,018		1,510	(6)	$	37.710		2/4/21
		3,655				$	39.460		2/6/20
		6,893				$	24.660		2/25/19
		3,600				$	43.010		2/7/18
		3,814				$	35.790		2/13/17

Andrew W. Tietz		1,488		2,977	(5)	$	36.815		2/3/22		6,902	(8)	$	258,618		10,656	(11)	$	399,280
		3,018		1,510	(6)	$	37.710		2/4/21

William C. Yester		1,984		3,969	(5)	$	36.815		2/3/22		9,308	(9)	$	348,771		14,564	(12)	$	545,713
		4,327		2,164	(6)	$	37.710		2/4/21
		5,239				$	39.460		2/6/20
		9,879				$	24.660		2/25/19
		5,371				$	43.010		2/7/18
		5,720				$	35.790		2/13/17
		6,906				$	37.925		2/2/16
		18,000				$	26.460		4/27/15
		6,232				$	18.780		4/20/14


Name	Plan Name	Number of Years Credited Service (#) (1)		Present Value of Accumulated Benefit (1) (2)		Payments During Last Fiscal Year
Lee M. Ahlstrom (3)	Salaried Employees’ Retirement Plan		—		—	$	—
	Retirement Restoration Plan		—		—	$	—
Andrew W. Tietz (3)	Salaried Employees’ Retirement Plan		—		—	$	—
	Retirement Restoration Plan		—		—	$	—
William C. Yester	Salaried Employees’ Retirement Plan		32.458	$	1,071,643	$	—
	Retirement Restoration Plan		32.458	$	1,387,083	$	—


Name	Executive Contributions in Last FY (1)		Noble Contributions in Last FY (2)		Aggregate Earnings in Last FY		Aggregate Withdrawals/ Distributions		Aggregate Balance at Last FYE
Lee. M. Ahlstrom	$	19,842	$	—	$	23,980	$	—	$	130,742
Andrew W. Tietz (3)	$	—	$	—	$	—	$	—	$	—
William C. Yester	$	58,583	$	—	$	325,994	$	—	$	1,587,465


Payment or Benefit	Lee M. Ahlstrom		Andrew W. Tietz		William C. Yester
Accrued Obligations	$	264,624	$	—	$	273,403
Severance Amount	$	1,140,000	$	—	$	1,120,000
Welfare Benefit Continuation	$	46,365	$	—	$	34,652
Supplemental Retirement Amount	$	—	$	—	$	182,793
Excise Tax Payment	$	—	$	—	$	—
Outplacement Services (1)	$	50,000	$	—	$	50,000
Accelerated Vesting of Options and Restricted Stock Units (2) (3)	$	922,538	$	659,848	$	897,084


Name	Number of Shares Underlying Unexercisable Options Subject to Acceleration of Vesting		Aggregate Value of Acceleration of Vesting
Lee M. Ahlstrom		4,983	$	2,275
Andrew W. Tietz		4,487	$	1,950
William C. Yester		6,133	$	2,600


Name	Number of Time-Vested Restricted Stock Units Subject to Acceleration of Vesting		Aggregate Value of Acceleration of Vesting
Lee M. Ahlstrom		10,889	$	408,011
Andrew W. Tietz		6,902	$	258,618
William C. Yester		9,308	$	348,771


Name	Number of Performance-Vested Restricted Stock Units Subject to Acceleration of Vesting		Aggregate Value of Acceleration of Vesting
Lee M. Ahlstrom		13,671	$	512,252
Andrew W. Tietz		10,656	$	399,280
William C. Yester		14,564	$	545,713


Name	Shares Beneficially Owned Before the Distribution					Shares Beneficially Owned After the Distribution
Name	Number		Percent			Number	Percent
Noble 3151 Briarpark Drive, Suite 700
Houston, Texas 77042				100	%
Randall D. Stilley
William C. Yester		—		—
Lee M. Ahlstrom		—		—
Andrew W. Tietz		—		—
James A. MacLennan		—		—
Julie J. Robertson		—		—
William E. Turcotte		—		—
David W. Williams		—		—
Director, director nominees and executive officers as a group ( persons)		—		—


NOBLE STANDARD-SPEC BUSINESS
Audited Combined Financial Statements for the Years Ended December 31, 2013, 2012 and 2011

Report of Independent Registered Public Accounting Firm			F-2

Combined Balance Sheets			F-3

Combined Statements of Income			F-4

Combined Statements of Comprehensive Income			F-5

Combined Statements of Cash Flows			F-6

Combined Statements of Changes in Equity			F-7

Notes to Combined Financial Statements			F-8

Unaudited Combined Financial Statements for the Three Months Ended March 31, 2014 and 2013

Combined Balance Sheets			F-22

Combined Statements of Income			F-23

Combined Statements of Comprehensive Income			F-24

Combined Statements of Cash Flows			F-25

Combined Statements of Changes in Equity			F-26

Notes to Combined Financial Statements			F-27

PARAGON OFFSHORE LIMITED (formerly Noble Spinco Limited) Audited Balance Sheet as of April 30, 2014

Report of Independent Registered Public Accounting Firm			F-34

Balance Sheet			F-35

Notes to Audited Balance Sheet			F-36


	December 31, 2013			December 31, 2012
ASSETS
Current assets
Cash and cash equivalents	$	36,581		$	70,538
Accounts receivable		356,241			321,659
Prepaid and other current assets		51,182			73,363

Total current assets		444,004			465,560

Property and equipment, at cost		6,067,066			5,861,921
Accumulated depreciation		(2,607,382	)		(2,310,108	)

Property and equipment, net		3,459,684			3,551,813

Other assets		79,111			100,699

Total assets	$	3,982,799		$	4,118,072

LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	124,442		$	128,420
Accrued payroll and related costs		60,738			58,258
Other current liabilities		41,374			25,066

Total current liabilities		226,554			211,744

Long-term debt		1,561,141			339,809
Deferred income taxes		101,703			96,834
Other liabilities		88,068			104,453

Total liabilities		1,977,466			752,840

Commitments and contingencies

Equity
Net parent investment		2,005,339			3,365,417
Accumulated other comprehensive loss		(6	)		(185	)

Total equity		2,005,333			3,365,232

Total liabilities and equity	$	3,982,799		$	4,118,072


	Net Parent Investment			Accumulated Other Comprehensive (Loss) Gain			Total Equity
Balance at January 1, 2011	$	3,247,850		$	(107	)	$	3,247,743
Net income		104,823			—			104,823
Net transfers to parent		(908,922	)		—			(908,922	)
Foreign currency translation adjustments		—			(1,821	)		(1,821	)

Balance at December 31, 2011		2,443,751			(1,928	)		2,441,823
Net income		126,237			—			126,237
Net transfers from parent		795,429			—			795,429
Foreign currency translation adjustments		—			1,743			1,743

Balance at December 31, 2012		3,365,417			(185	)		3,365,232
Net income		360,305			—			360,305
Net transfers to parent		(1,720,383	)		—			(1,720,383	)
Foreign currency translation adjustments		—			179			179

Balance at December 31, 2013	$	2,005,339		$	(6	)	$	2,005,333


	2013		2012
Drilling equipment and facilities	$	5,948,396	$	5,186,142
Construction-in-progress		117,246		674,333
Other		1,424		1,446

Property and equipment, at cost	$	6,067,066	$	5,861,921


	December 31, 2013		December 31, 2012
Noble Credit Facilities / Commercial Paper Program	$	1,561,141	$	339,809


Time-vested restricted units:	2013		2012		2011
Units awarded (maximum available)		148,622		161,551		119,696
Weighted-average unit price at award date	$	41.42	$	36.90	$	37.60
Weighted-average vesting period (years)		3.0		3.0		3.0