Vantage Drilling CO - FORM 8-K - EX-99.1 - INVESTOR PRESENTATION - May 4, 2011

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Credit Suisse OTC Conference
May 3, 2011
Exhibit 99.1

Forward-Looking Statements
Some of the statements in this presentation constitute forward-looking statements.  Forward-looking statements relate to
expectations, beliefs,
projections,
future
plans
and
strategies,
anticipated
events
or
trends
and
similar
expressions
concerning matters that are not historical facts.  The forward looking statements contained in this presentation involve risks
and uncertainties as well as statements as to:
•
our limited operating history;
•
availability of investment opportunities;
•
general volatility of the market price of our securities;
•
changes in our business strategy;
•
our ability to consummate an appropriate investment opportunity within given time constraints;
•
availability of qualified personnel;
•
changes in our industry, interest rates, the debt securities markets or the general economy;
•
changes in governmental, tax and environmental regulations and similar matters;
•
changes in generally accepted accounting principles by standard-setting bodies; and
•
the degree and nature of our competition.
The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking
into account all information currently available to us.  These beliefs, assumptions and expectations can change as a result
of many possible events or factors, not all of which are known to us or are within our control.  If a change occurs, our
business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-
looking statements.

Recent Developments
•
November 15, 2010  -
Took delivery of Platinum Explorer
•
Commenced operations with ONGC on December 29, 2010
•
Platinum Explorer achieves impressive utilization –
–
January 82%
–
February 93%
–
March 98%
–
April 99%
•
Signed Construction Management Agreement with Aker Drilling for two
drillships
under construction at DSME
•
High-specification jackup
market experiencing significant upward
momentum in rates with continued high utilization
•
Awarded high-profile jackup
contract for ultra-HPHT work in Malaysia @
$187,000 per day (inclusive of reimbursed upgrades); 14-21 month
duration

Corporate Overview
Symbol:
VTG (NYSE AMEX)
Location:
HQ
–
Houston;
Operations
–
Singapore;
Marketing
–
Dubai
Market Cap:
$510 million
Book Value:
$752 million
Enterprise Value:
$1.6 billion
Employees:
> 700
Contract Backlog:
$3.0 billion
Owned Fleet:
4 Ultra-Premium Jackups
1 Ultra-Deepwater Drillship
Managed Fleet:
4 Ultra-Deepwater Drillships

•
Premium high-specification drilling units, including four jackup rigs and three drillships
•
Vantage’s modern rigs are capable of drilling to deeper depths and possess enhanced operational
efficiency and technical capabilities, resulting in higher utilization, dayrates and margins
•
Total
costs
of
owned
fleet
of
four
jackups
and
the
Platinum
Explorer
drillship
of
approximately
$1.7
billion
•
Successful
track
record
of
managing,
constructing,
marketing
and
operating
offshore
drilling
units
•
In-house team of engineers and construction personnel overseeing complex construction projects
•
All jackups delivered on budget and on time
•
Jackup fleet has experienced approx. 99% of productive time for Vantage’s first 27months in operation
Level of efficiency is exceptional for newly-constructed jackup rigs upon commencement of operations
Proven
Operational
Track
Record
•
Significant cash flow visibility
•
Owned
fleet
contract
backlog
of
approximately
$1.2
billion
and
managed
fleet
contract
backlog
of
approximately
$1.8 billion as of January 2010
Owned
fleet
counterparties
include
Total,
Pearl
Energy,
Bowleven,
Foxtrot
International,
Phu
Quy
(1)
,
Salamander, PTT, Petronas Carigali and ONGC,
Managed deepwater rigs counterparties include Petrobras
Significant
Contract Coverage
with
High Quality
Counterparties
Company Highlights
(1)
PVEP Phu Quy Petroleum Operating Co. Ltd. is a joint venture interest between PetroVietnam Exploration Production Corp. and Total E&P Vietnam.
Premium Fleet

Company Highlights (Cont’d)
Construction management arrangements for four ultra-deepwater drillships, DragonQuest, Dalian
Developer, Aker Drilling 1 & 2
Approximately $5.0 million of annual cash flow during the construction phase
Management of DragonQuest once in service
Approximately $12.0 to $15.0 million per year for the duration of the contract
Management team with extensive experience; average of 28 years in the drilling industry
Includes international and domestic public company experience with industry-leading peers involving
numerous acquisitions and debt and equity financings
Experienced operating personnel
Construction
Supervision and
Management
Arrangements
Experienced
Management and
Operational Team

Singapore Operations and Technical Support –
Track Record of Excellence
Completed Projects
4 BMC 375 Jackups
Platinum Explorer
Current Projects
Dalian Developer
DragonQuest
Aker Drillships #1 & 2
SeaDragon 1 & 2
All Delivered On-Time, On Budget –
•Emerald
Driller
–
December
2008
•Sapphire
Driller
–
July
2009
•Aquamarine
Driller
–
September
2009
•Topaz
Driller
–
December
2009
Delivered On-Time, On Budget
November 2010
Restructured construction project
with Vantage designed remediation
plan and implemented project
controls.  Project completed for
customer as rigs sold to competitor.
•
Project 99% complete
•
Current on-time, on budget
•
2    Successful newbuild at DSME
•
Hired by Financial Institution to provide
shipyard oversight following bid process
•
Largest drillship in the world currently
under construction
•
Vessel will include oil storage and multi-
purpose capabilities
•
Hired by peer drilling company to
manage shipyard oversight
•
Leverages our strong relationship with
DSME
nd

Worldwide Operations
Vantage Offices
Owned Rigs
Managed Rigs
Contract: Petrobras
DragonQuest
U.S. GOM
Contract: ONGC
Platinum Explorer
India
Houston
Singapore
Dubai
Contract: Pearl
Emerald Driller
Thailand
Contract: Foxtrot
Sapphire Driller
Ivory Coast
LOI
Aquamarine Driller
Malaysia
Contract: Phu Quy
(1)
Topaz Driller
Vietnam
Country of Operation
(1)
PVEP Phu Quy Petroleum Operating Co. Ltd. is a joint venture interest between PetroVietnam Exploration Production Corp. and Total E&P Vietnam.
LOI:
Sapphire Driller
Cameroon

Jackup Fleet
World class assets achieving world class performance –
•Fleet productive time approximately 99% since inception
•High-specification jackup fleet meeting today’s challenges:
•
Faster drilling times
•
Faster moving times
•
Increased volumes of consumable liquids
and drilling fluids
•
Reduced boat runs and non-productive
time
•
Improved pipe handling and offline
capability
•
Fast preloading time for all tanks
•
75’
x 30’
cantilever reach substantially greater
than the industry average
•
Pipe decks allow increased storage capacity
•
Premium drilling package:
•
3 x 2200HP mud pumps
•
Integrated diverter system
•
18 ¾
BOP handling system and 4 rams
•
High-capacity,
high
efficiency
–
5
x
CAT
3516
B Diesel engines
Emerald Driller
Sapphire Driller
Aquamarine Driller
Strong Financial Performance
Forecast

Fleet Status –
Average Drilling Revenue /
Day
(1)
Ownership
2010
2011
2012
Rig
%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Jackups
Emerald Driller
100%
2 yrs. at $171K
2 mos. at $132K
Sapphire Driller
100%
10 mos. at $115.5K
4 mos. at $120K
1 yr at $120K
Aquamarine Driller
100%
5 mos. at $154.2K
10 mos. at $120K
(2)
$124K
2 wells at $137K
Topaz Driller
100%
10 mos. at $107.2K
14 mos. At $187K (including upgrade & mob.)
Drillships
Platinum Explorer
100%
5 yrs. at $590.5K
DragonQuest
Managed
8 yrs. at $551.3K
(3)
Construction
Commissioning/
Working
Operating
Option
Extended
Management
Mobilization/
(Owned Rigs)
(Management
Contract
Well Test
Contract
Shipyard
Contract)
Option
(1)
Average drilling
revenue
per
day
is
based
on
the
total
estimated
revenue
divided
by
the
minimum
number
of
days
committed
in
a
contract.
Unless
otherwise
noted,
the
total
revenue
includes
any mobilization and demobilization fees and other contractual revenues associated with the drilling services.
(2)
The
contract
is
for
drilling
two
wells
plus
extended
well
tests.
Estimated
drilling
time
is
one
month
per
well
and
extended
well
tests
could
range
from
a
few
months
to
up
to
one
year
per
well.
The
first
extended
well
tests
period
has
been
contracted
through
April
2011.
(3)
The drilling revenue per day includes the achievement of the 12.5% bonus opportunity, but excludes mobilization revenues and revenue escalations included in the contract.

Premium Asset Advantage
•
Premium
jackups
(350’
+
IC
rigs)
and ultra-deepwater  floater
have historically maintained
significantly higher utilization
levels, particularly during
downturns in the energy industry
–
Operators demand newer, higher
specification rigs due to superior
operating performance, resulting in
lower maintenance downtimes,
improved safety and higher efficiency
•
A higher utilization level in the
international drilling market
continues to reflect a more
stable rig supply and demand
environment than the Gulf of
Mexico
•
Operators are willing to pay a
substantial dayrate premium for
high-specification rigs
Global Jackup Utilization
International vs. GOM Jackup Utilization
Source: Riglogix; ODS-PetroData.
Historical Floater Dayrates ($Thousands)
Historical Floater Utilization

Profile of Global Jackup Fleet
•
Capabilities and
age
–
The
current
worldwide
fleet
is
comprised
mostly
of
older,
inefficient rigs
–
27% of today’s jackups are mat-supported and/or have less than 200ft of water depth capability
–
70% of today’s jackups
are 25 years or older
–
As of February 2011 a total of 134 rigs were either ready stacked, cold stacked, or in an accommodation mode without
contract
–
How many will not return to service?
•
Setting up
cyclical
recovery
–
Reduction
in
the
overall
fleet
should
result
in
pricing
power
and
high
utilization levels early on during the recovery
•
Age is
a
factor
–
Demand
is
increasing
for
high-specification
jackups.
Many
customers
are
implementing age restrictions and new high-specification characteristics
Source: ODS-Petrodata
Global Jackup Fleet Distribution
Age
Rigs
%
%
300+
200-299
<200
25 years or older
332
70%
62%
150
128
54
5 to 24 years
52
11%
10%
48
3
1
0 to 4 years
92
19%
17%
83
4
5
476
100%
281
135
60
2011 Deliveries
18
3%
15
2
1
2012 Deliveries
21
4%
18
3
0
2013 Deliveries
23
4%
22
1
0
538
100%
336
141
61
Age of Jackup Fleet
Water Depth (feet)

Profile of Global Ultra-Deepwater Fleet
•
Floater Rig Supply By Type (# of Rigs)
Ultra-Deepwater Floaters By Operator
(1)
Source: ODS-Petrodata.
(1)
Ultra-Deepwater (>7,500 ft) drillships and semisubmersibles currently in operation.
(2)
Other
operators
with
1
rig
each
include:
Det
Norske
Oljeselskap,
Husy
Oil,
Nexen,
Devon
Energy,
Ophir
Energy,
Repsol
YPF,
PEMEX,
Burullus,
LLOG,
ExxonMobil,
Woodside,
and
Marathon
for
a
total
of 12 rigs.
(3)
Other operators with 2 rigs each include: Petronas Carigali, Eni, Hess, BHP Billiton, Noble Energy and ONGC for a total of 12 rigs.
•
•
•
The ultra-deepwater rig market maintains the most favorable long-term outlook driven by recent   
discoveries in Brazil, West Africa, and the U.S. Gulf of Mexico
Ultra-deepwater rigs are capable of working in any water depth where operators are currently likely to drill   
Can compete for any available work, while lower water depth drilling rigs have a more limited market  
Projections indicate a shortage of rigs designed for the 4,000 – 6,000’ water depth range which will likely 
be filled by ultra-deepwater units

Financial Overview
Balance Sheet
($Millions)
December 31,
December 31,
2009
2010
Cash and cash equivalents
16.0
$               
120.4
$            
Restricted cash
28.9
                  
29.0
                  
Trade receivables
17.5
                  
50.2
                  
Inventory
10.8
                  
19.8
                  
Prepaid expenses and other current assets
8.0
                    
11.5
                  
81.2
                  
230.9
               
Property and equipment, net
888.2
               
1,718.1
           
Investment in joint venture
120.3
               
-
                         
Other assets
29.4
                  
54.2
                  
1,119.2
$         
2,003.2
$         
 
Accounts payable and accrued liabilities
30.2
$               
107.5
$            
Short-term debt
17.8
                  
8.6
                    
Current maturities of long-term debt
16.0
                  
-
                         
64.0
                  
116.1
               
Long–term debt
378.1
               
1,103.5
           
Other long term liabilities
-
                         
13.5
                  
Shareholders' Equity
Paid-in capital
714.7
               
854.8
               
Retained Earnings
(37.1)
                 
(84.7)
                 
Accumulated other comprehensive loss
(0.5)
                   
-
                         
Total shareholders’ equity
677.1
               
770.2
               
1,119.2
$         
2,003.2
$         
Outstanding shares
187.3
               
289.7
               
Book value per share
3.62
$               
2.66
$               

Debt Repayment
•
No near-term maturities provides
flexibility
•
Excess cash flow offers
opportunity; alternatively we can
buy bonds in the market with
excess cash
•
Aquamarine term loan facility
matures 2014; can be refinanced
beginning September 2011

Financial Overview
Run-Rate Financial Potential of Vantage Owned Assets
($Millions, except dayrates)
(1)
Calculations of rig-level EBITDA incorporate management's assumption of 90% utilization/efficiency of jackups, which reflects industry standard productive
times on high-specification jackups. Utilization/efficiency of drillship assumed to be 97%, which management believes is a reasonable assumption for a
newbuild vessel in its first full year of operations. Rig-level EBITDA attributable to jackups reflects operating expense assumption based on Vantage’s
jackups that operated for the full first quarter of 2010.
Illustrative Range of Run-Rate Financial Potential
•
Strong cash flow backlog to cover
debt service
•
Leveraged to upturn in high-
specification jackup market

Significant Upside Valuation Potential
EBITDA
Low
6.5x
Today’s
Peer Avg.
9.5
Historical
Peer Avg.
11.6x
$275 million
$2.40
$4.41
$7.26
$300 million
$2.95
$6.06
$8.26
$350 million
$4.08
$7.70
$10.28
Implied Values –
EV/EBITDA
Source: Credit Suisse
Price to Book Value
Key Drivers Near Term –
•
Achieve high productive time on Platinum Explorer
•
Improving dayrate contract fixtures on jackups

Financial Overview
Historical Financial Information
($ Millions)

Appendix
Reconciliation of Net Income (Loss) to Adjusted EBITDA
($Millions)
3/31/2009
6/30/2009
9/30/2009
12/31/2009
3/31/2010
6/30/2010
9/30/2010
12/31/2010
Net income (loss)
2.4
$           
4.0
$           
6.8
$           
(4.3)
$         
6.0
$           
(7.0)
$         
(33.6)
$       
(13.0)
$       
Interest expense, net
0.7
             
1.3
             
1.9
             
4.2
             
8.0
             
13.3
           
13.9
           
14.1
           
Income tax provision (benefit)
0.6
             
0.9
             
1.1
             
(0.6)
            
2.3
             
8.4
             
2.8
             
5.5
             
Depreciation
1.7
             
2.1
             
3.2
             
4.3
             
7.5
             
8.4
             
8.8
             
8.8
             
Loss on debt extinguishment
-
             
-
             
-
             
-
             
-
             
-
             
24.0
           
-
             
Loss on acquisition of subsidiary
-
             
-
             
-
             
-
             
-
             
-
             
3.8
             
-
             
  EBITDA
5.4
$           
8.3
$           
13.0
$         
3.6
$           
23.8
$         
23.1
$         
19.7
$         
15.4
$         
Share-based compensation expense
1.1
             
1.2
             
1.2
             
1.4
             
1.5
             
1.5
             
1.6
             
1.5
             
Adjusted EBITDA
6.5
$           
9.5
$           
14.2
$         
5.0
$           
25.3
$         
24.6
$         
21.3
$         
16.9
$         
Fiscal Quarter Ended,

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