Case CSS Doc 1838 Filed 08/07/17 Page 1 of 27

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1 Case CSS Doc 1838 Filed 08/07/17 Page 1 of 27

2 Case CSS Doc 1838 Filed 08/07/17 Page 2 of 27 MOR Notes In re PLC, et al. GENERAL: The report includes activity from the following Debtors and related Case Numbers: Debtor Case Number Drilling LLC plc (in administration) Paragon Drilling Services 7 LLC Finance Company Leasing (Switzerland) GmbH do Brasil Ltda Paragon International Finance Company Paragon Asset (ME) Ltd Holdings US Inc Paragon Asset (UK) Ltd Paragon FDR Holding Ltd International Ltd (North Sea) Ltd Paragon Duchess Ltd Paragon (Middle East) Limited (Luxembourg) S.a r.l Paragon Holding NCS 2 S.a r.l Paragon Leonard Jones LLC PGN Offshore Drilling (Malaysia) Sdn. Bhd (Nederland) B.V Contracting GmbH (Labuan) Pte. Ltd Paragon Holding SCS 2 Ltd Paragon Asset Company Ltd Paragon Holding SCS 1 Ltd Leasing (Luxembourg) S.a r.l General Notes: Notes to the Monthly Operating Report On February 14, 2016, plc (in administration) and its debtor subsidiaries (collectively, the Debtors ) filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the "Court "). On May 17, 2017, the board of directors of the Company filed an administration application with the High Court of Justice, Chancery Division, Companies Court of England and Wales (the "English Court ") for the appointment of Neville Barry Kahn and David Philip Soden, each of Deloitte LLP, as joint administrators of the Company and, on May 23, 2017, Messrs. Kahn and Soden were appointed by the English Court as joint administrators of the Company (the "Joint Administrator "). On June 7, 2017, the Court entered an order at Docket No confirming the Fifth Joint Chapter 11 Plan of plc and Its Affiliated Debtors (the Plan ). The Plan was modified by the Court's order at Docket No The financial and supplemental information contained herein are preliminary, unaudited, and may not comply in all material respects with generally accepted accounting principles in the United States of America ("U.S. GAAP"). Individual Debtor entities are presented in the accompanying statement of operations.

3 Case CSS Doc 1838 Filed 08/07/17 Page 3 of 27 MOR Notes In re PLC, et al. General Notes (cont'd): Notes to MOR-1 and MOR-1a: Notes to MOR-1b: Notes to MOR-1c: Notes to the Monthly Operating Report The financial information has been derived from the books and records of the Debtors. This information, however, has not been subject to certain procedures that would typically be applied to financial information in accordance with U.S. GAAP, and upon application of such procedures, the Debtors believe that the financial information could be subject to changes, which could be material. The financial information contained herein is presented on a preliminary and unaudited basis and remains subject to future adjustments. The results of operations contained herein are not necessarily indicative of results which may be expected for any other period or for the full year and may not necessarily reflect the combined results of operations and financial position of the Debtors in the future. Receivables and payables among the Debtors and between the Debtors and Non-Debtors have not been eliminated from the Statement of Operations (Income Statements) or Balance Sheets contained herein. No conclusion as to the legal obligation related to these intercompany transactions is made by the presentation herein. As a result, the completeness and accuracy of this information is undetermined. Certain amounts may appear to be clerically inaccurate as they are presented in thousands and are subject to rounding differences. Certain amounts in prior filings have been reclassified to conform to the current filing presentation. Cash receipts and disbursements have been assigned to the Debtor entity they relate to rather than the Debtor that received / made the payment. Such movements may therefore not reflect the movement in individual Debtor bank accounts. Attached to MOR-1 is a listing of the Debtors' bank accounts (see MOR-1a), by account number, and opening and closing bank balances for the reporting period. The listing includes certain accounts that have subsequently been closed during the post petition period. The accounts have been reconciled in accordance with the Debtors' ordinary course accounting practices during the reporting period. The disbursements reported in MOR-1 include outstanding checks and any reconciling items. Non-Debtor Services LLC made, among other things, certain payments to the Debtors professionals and secured lenders approved under prior orders of the Court. All such amounts were reconciled by intercompany payables from the Debtors accounts to the non-debtors accounts. Payments of Professional Fees to retained professionals were made during the period. Total paid in the month and to date is disclosed in MOR-1b. Paragon does not prepare cash flows on an individual entity basis. Attached at MOR-1c is a consolidated cash flow including comparison to budget. The cash flows are prepared at weekly rests and do not reflect performance per calendar month. The Professional Fees listed in MOR-1c include payments made to professionals representing the Agent for the Revolver Lenders and the Agent for the Term Loan Lenders in accordance with the Final Order (I) Authorizing the Debtors to Utilize Cash Collateral; and (II) Granting JPMorgan Chase Bank, N.A., as Administrative Agent for the Revolver Lenders and Collateral Agent for the Revolver Lenders and Term Loan Lenders, and Cortland Capital Market Services L.L.C., as Successor Administrative Agent for the Term Loan Lenders, Adequate Protection Pursuant to Sections 105, 361, 362, 363 and 507 of the Bankruptcy Code (D.I. No. 140).

4 Case CSS Doc 1838 Filed 08/07/17 Page 4 of 27 MOR Notes In re PLC, et al. Notes to the Monthly Operating Report Notes to MOR-2 and MOR-3: The financial information for June 2017 contained herein is presented on a preliminary and unaudited basis and remains subject to future adjustments. Certain amounts in prior filings have been reclassified to conform to the current filing presentation. Accounts Receivable and Accounts Payable may include intercompany balances among the Debtors, and between the Debtors and Non-Debtors. See General Notes regarding elimination of these balances. Notes to MOR-4: The post-petition tax activity presented includes pre-and post- petition tax liabilities. The closing tax position disclosed in MOR-4 (May 2017) may not equate with the opening balances in MOR-4 (June 2017) due to ordinary course adjustments/reclassifications of certain tax liabilities after the May 2017 MOR was filed. To the best of the Debtors' knowledge, and except as otherwise set forth in this Monthly Operating Report, all of the Debtors have filed all necessary federal, state and local tax returns and have timely made (or are in the process of remediating any immaterial late filings or prepayments) all related required post-petition tax payments. Notes to MOR-5: Accounts Receivable information included in MOR-5 excludes intercompany balances among the Debtors, and between the Debtors and Non-Debtors. See General Notes regarding these balances. Earned revenue is considered "billed" to the customer on the date for which the invoice is physically mailed or electronically delivered to the customer. "Unbilled" Accounts Receivable consists of any earned revenue item which has not been billed to the customer. Notes to MOR-5 Debtor Questionnaire: Question #2 - The Debtors have disbursed funds from certain non-debtor accounts in accordance with the Final Order (I) Authorizing Debtors to (A) Continue Existing Cash Management System, (B) Maintain Business Forms and Existing Bank Accounts, and (C) Continue Intercompany Arrangements; (II) Waiver of the Requirements of Section 345(b) of the Bankruptcy Code; and (III) Granting Related Relief [D.I. No. 236]. Documentation is available upon request.

5 Case CSS Doc 1838 Filed 08/07/17 Page 5 of 27 MOR-1 In re PLC, et al. Schedule of Cash Receipts and Disbursements See Notes to the MOR related to MOR-1 Debtor Case Number External Disbursements Intercompany Disbursements to Non-Debtors Non Debtor on Behalf of Debtors Total Disbursements Cash Receipts Drilling LLC $ (543) $ - $ - $ (543) $ - plc (in administration) (2,066) - (7,959) (10,026) 210 Paragon Drilling Services 7 LLC (226) (226) - Finance Company (3,337) (3,337) - Leasing (Switzerland) GmbH (17) (17) - do Brasil Ltda (370) (370) - Paragon International Finance Company (700) - (570) 57 Paragon Asset (ME) Ltd (27) (27) - Holdings US Inc Paragon Asset (UK) Ltd (640) (640) 1,598 Paragon FDR Holding Ltd International Ltd (2,425) (2,425) 4,914 (North Sea) Ltd (386) (386) - Paragon Duchess Ltd (10) (10) - Paragon (Middle East) Limited (1,068) (1,068) 3,199 (Luxembourg) S.a r.l Paragon Holding NCS 2 S.a r.l Paragon Leonard Jones LLC (220) (220) - PGN Offshore Drilling (Malaysia) Sdn. Bhd (9) (9) - (Nederland) B.V (629) (103) - (732) 80 Contracting GmbH (139) (139) 23 (Labuan) Pte. Ltd (10) (10) - Paragon Holding SCS 2 Ltd Paragon Asset Company Ltd (534) (534) 1 Paragon Holding SCS 1 Ltd Leasing (Luxembourg) S.a r.l (0) (0) - Total $ (12,527) $ (803) $ (7,959) $ (21,290) $ 10,082

6 Case CSS Doc 1838 Filed 08/07/17 Page 6 of 27 MOR-1a In re PLC, et al. Bank Reconciliation (or copies of Debtors' bank reconciliations) See Notes to the MOR related to MOR-1a Last 4 Digits of Opening Account Closing Account Opening Cash Closing Cash Entity Case Number Bank Name Account No. Balance Balance Book Book Drilling LLC $ - $ - $ - $ - plc (in administration) Sub Total 345, , , , Wells Fargo HSBC Goldman Sachs , , , , Bank of America ,504 21,593 11,504 21,593 Paragon Drilling Services 7 LLC Wells Fargo Finance Company Wells Fargo Leasing (Switzerland) GmbH Sub Total HSBC UBS 701L do Brasil Ltda Sub Total 3,372 2,969 3,320 2, Banco Itau ,308 2,904 3,314 2, Banco Bradesco Banco Itau Petty Cash Paragon International Finance Company Sub Total 111, , , , JPMorgan Chase Wells Fargo (30) Wells Fargo Wells Fargo (1) Wells Fargo Wells Fargo Wells Fargo Wells Fargo Goldman Sachs ,155-38, Bank of America , , Bank of America Bank of America ,489 97,489 72,446 97, Wells Fargo Bank of America Bank of America ,642 (86) 2, Bank of America Paragon Asset (ME) Ltd Holdings US Inc Paragon Asset (UK) Ltd Paragon FDR Holding Ltd Wells Fargo

7 Case CSS Doc 1838 Filed 08/07/17 Page 7 of 27 MOR-1a In re PLC, et al. Bank Reconciliation (or copies of Debtors' bank reconciliations) See Notes to the MOR related to MOR-1a Last 4 Digits of Opening Account Closing Account Opening Cash Closing Cash Entity Case Number Bank Name Account No. Balance Balance Book Book International Ltd Sub Total HSBC HSBC HSBC HSBC Ecobank CCEI Bank GE Malabo Standard Charter HSBC Bank of America Wells Fargo Bank of America Wells Fargo Bank of America Petty Cash 8 8 (North Sea) Ltd Paragon Duchess Ltd Paragon (Middle East) Limited (Luxembourg) S.a r.l Sub Total Wells Fargo Wells Fargo Paragon Holding NCS 2 S.a r.l Wells Fargo Paragon Leonard Jones LLC Sub Total Wells Fargo Wells Fargo HSBC HSBC Bank of America Bank of America PGN Offshore Drilling (Malaysia) Sdn. Bhd Sub Total Wells Fargo Standard Charter (Nederland) B.V Sub Total 2,201 2,218 2,213 2, Wells Fargo Wells Fargo Barclays ABN AMRO NL2A 1,569 1,621 1,583 1, Bank of America Bank of America (8) (8) Bank of America Bank of America Petty Cash -

8 Case CSS Doc 1838 Filed 08/07/17 Page 8 of 27 MOR-1a In re PLC, et al. Bank Reconciliation (or copies of Debtors' bank reconciliations) See Notes to the MOR related to MOR-1a Entity Case Number Bank Name Last 4 Digits of Account No. Opening Account Balance Closing Account Balance Opening Cash Book Closing Cash Book Contracting GmbH Sub Total Wells Fargo 8002 (0) Wells Fargo Wells Fargo Banamex Banamex UBS 403W Bank of America Bank of America Petty Cash (Labuan) Pte. Ltd Sub Total Wells Fargo HSBC HSBC Paragon Holding SCS 2 Ltd Paragon Asset Company Ltd Paragon Holding SCS 1 Ltd Leasing (Luxembourg) S.a r.l Subtotal 1,211 1,221 1,219 1, Wells Fargo BCEE ,211 1,221 1,219 1,239 Total $ 464,508 $ 465,732 $ 464,509 $ 465,806

9 Case CSS Doc 1838 Filed 08/07/17 Page 9 of 27 MOR-1b In re PLC, et al. Schedule of Professional Fees Paid Of the total disbursements shown on the Schedule of Disbursements Report (MOR-1) list the amount paid to Retained Professionals. See Notes to the MOR related to MOR-1b Retained Professionals Name Amount Paid During Month Total Paid to Date Weil, Gotshal & Manges LLP $ - $ 10,385 Richards, Layton & Finger, PA AlixPartners LLP 378 5,290 Lazard, Freres & Co LLC - 1,792 Norton Rose Fulbright US LLP KCC Paul Weiss 558 2,160 Deloitte 616 1,063 Total Payments to Professionals $ 1,615 $ 22,799

10 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 10 of 27 MOR-1c PLC, et al Budget to Actual Consolidated Cash Flow Variance Report See Notes to the MOR related to MOR-1c Variance 06/03/17-06/30/17 Budget Actual F/(U) Total Receipts 7,781 7, Total Operating Disbursements (8,226) (5,267) 2,959 Total Capital Expenditures (1,247) (137) 1,110 Total Payroll & Benefits (3,450) (2,816) 634 Total Other (285) (499) (214) Total I/C Disbursements to Non Debtor Entities (7,608) (7,264) 344 Total Disbursements (20,817) (15,984) 4,833 Net Operating Cash Flow (13,036) (8,074) 4,961 Deposits Utility Deposits Other Total Deposits Total Debt Service (5,085) (5,351) (266) Total Professional Fees (5,693) (5,370) 323 Total Non-Operating Disbursements (10,778) (10,721) 57 Net Cash Flow (23,813) (18,795) 5,018 Debtor Ending Cash Balance - Encumbered 94, ,098 24,867 Debtor Cash Balance - Unencumbered 344, ,212 10,297 Total Debtor Cash Balance 439, ,311 35,165 Non Debtor Ending Cash Balance 363, ,237 (27,458) Restructuring Closing Costs (557,870) - 557,870 Total Debtor & Non Debtor Ending Cash Balance 244, , ,577

11 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 11 of 27 MOR-2 Unaudited Statement of Operations (Income Statement) (See Notes to the MOR related to MOR-2) Drilling LLC Paragon Offshore plc (in administration) Paragon Drilling Services 7 LLC Finance Company Leasing (Switzerland) GmbH do Brasil Ltda. Paragon International Finance Company Operating Revenues Contract Drilling Revenue $ 1,161 $ - $ - $ - $ - $ - $ - Reimbursable Revenues Labor Contract Revenues - Intercompany Revenues - 5,843 Other Revenues - Operating revenues 1,164 5, Operating Costs and Expenses Contract Drilling Expenses 2,140 (2,939) (477) - (124) (667) - Labor Contract - Reimbursable Expenses (3) - (1) - Depreciation and Amortization (594) (6) (334) General & Administrative - (5,130) (37) - (37) Operating costs and expenses 1,543 (8,075) (477) - (495) (667) (37) Operating Income 2,706 (2,232) (477) - (495) (651) (37) Other Income (Expense) Interest Expense - (2,219) - (3,104) - (0) - Interest Income Realized Gain/Loss Reorganization Items - (6,708) Other, net - Income before income taxes 2,802 (10,846) (477) (3,104) (473) (599) 103 Income tax provision (2,095) 36 (18) - (7,327) Net Income 707 (10,810) (477) (3,104) (491) (599) (7,224)

12 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 12 of 27 MOR-2 Unaudited Statement of Operations (Income Statement) (See Notes to the MOR related to MOR-2) Operating Revenues Contract Drilling Revenue Reimbursable Revenues Labor Contract Revenues Intercompany Revenues Other Revenues Operating revenues Operating Costs and Expenses Contract Drilling Expenses Labor Contract Reimbursable Expenses Depreciation and Amortization General & Administrative Operating costs and expenses Operating Income Other Income (Expense) Interest Expense Interest Income Realized Gain/Loss Reorganization Items Other, net Income before income taxes Income tax provision Net Income Paragon Asset (ME) Ltd. Holdings US Inc. Paragon Asset (UK) Ltd. Paragon FDR Holding Ltd. International Ltd. $ - $ - $ 1,481 $ - $ 1, ,571-1,957 (43) (99) (1,792) (50) (4,165) (63) - (89) (245) (98) - (167) (250) (81) - (288) (266) (2,104) (131) (4,352) (288) (266) (533) (131) (2,395) - (7) - 87 (288) (266) (533) (131) (2,315) 1 1,795 1,122 (287) 1,529 (533) (131) (1,194)

13 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 13 of 27 MOR-2 Unaudited Statement of Operations (Income Statement) (See Notes to the MOR related to MOR-2) Operating Revenues Contract Drilling Revenue Reimbursable Revenues Labor Contract Revenues Intercompany Revenues Other Revenues Operating revenues Operating Costs and Expenses Contract Drilling Expenses Labor Contract Reimbursable Expenses Depreciation and Amortization General & Administrative Operating costs and expenses Operating Income Other Income (Expense) Interest Expense Interest Income Realized Gain/Loss Reorganization Items Other, net Income before income taxes Income tax provision Net Income (North Sea) Ltd. Paragon Duchess Ltd. Paragon (Middle East) Limited (Luxembourg) S.a r.l. Paragon Holding NCS 2 S.a r.l. Paragon Leonard Jones LLC $ - $ - $ 5,217 $ - $ - $ ,785 7,060 1 (36) 199 (1,534) - (49) (61) (55) (0) - (3,370) - (60) - - (3) - (36) 197 (4,959) - (109) (61) (36) 197 2,101 - (109) (60) 0 (7) (36) 197 2,101 - (109) (67) (61) - (130) (43) (96) 197 1,972 - (109) (110)

14 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 14 of 27 MOR-2 Unaudited Statement of Operations (Income Statement) (See Notes to the MOR related to MOR-2) Operating Revenues Contract Drilling Revenue Reimbursable Revenues Labor Contract Revenues Intercompany Revenues Other Revenues Operating revenues Operating Costs and Expenses Contract Drilling Expenses Labor Contract Reimbursable Expenses Depreciation and Amortization General & Administrative Operating costs and expenses Operating Income Other Income (Expense) Interest Expense Interest Income Realized Gain/Loss Reorganization Items Other, net Income before income taxes Income tax provision Net Income PGN Offshore Drilling (Malaysia) Sdn. Bhd. (Nederland) B.V. Contracting GmbH (Labuan) Pte. Ltd. Paragon Holding SCS 2 Ltd. Paragon Asset Company Ltd. $ - $ - $ - $ - $ - $ - - 1,063 1,088-1,063 1,088 (31) (1,049) (225) (6) (1,637) (3,837) (23) (3,179) (0) - (2,747) - (31) (1,049) (248) (6) (4,384) (7,016) (31) 14 (248) (6) (4,384) (5,928) 0 (30) (0) (0) (31) (15) (248) (6) (4,384) (5,928) - (86) (160) 3 6,790 - (31) (102) (408) (3) 2,405 (5,928)

15 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 15 of 27 MOR-2 Unaudited Statement of Operations (Income Statement) (See Notes to the MOR related to MOR-2) Operating Revenues Contract Drilling Revenue Reimbursable Revenues Labor Contract Revenues Intercompany Revenues Other Revenues Operating revenues Operating Costs and Expenses Contract Drilling Expenses Labor Contract Reimbursable Expenses Depreciation and Amortization General & Administrative Operating costs and expenses Operating Income Other Income (Expense) Interest Expense Interest Income Realized Gain/Loss Reorganization Items Other, net Income before income taxes Income tax provision Net Income Paragon Holding SCS 1 Ltd. Leasing (Luxembourg) S.a r.l. $ - $ - - (178) - (145) - (0) - (323) - (323) (291) - (291)

16 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 16 of 27 MOR-3 Unaudited Balance Sheet (See Notes to the MOR related to MOR-3) Drilling LLC plc (in administration) Paragon Drilling Services 7 LLC ASSETS Current assets Total Cash and Cash Equivalents - 355,597 - Accounts Receivable 154, , ,214 Prepaid Expenses & Deposits (50) Taxes Receivable Total Other Current Assets 13, Total current assets 167, , ,164 Restricted cash (Long Term) - 9,273 - Other long-term assets 341,484 3,473,357 - Long Term Notes & Investments 341,484 3,482,630 - Gross PPE 97, ,967 Accumulated Depreciation (79,965) (128) (34,967) Property and Equipment 17, (0) Total assets 526,845 4,060, ,164 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current Maturities & Short Term Debt Accounts Payable 56, , ,202 Payroll and Benefits Related Accruals 1,187 (47) - Taxes Payable 3, Interest Payable Other Current Liabilities 2,638 1,402 - Total current liabilities 63, , ,202 Total Long-Term Debt Deferred Taxes (0) 0 - Other NonCurrent Liabilities 683 2,498 - Liabilities Subject to Compromise - 1,709,947 - Total liabilities 63,919 2,654, ,202 Shareholders' equity Shareholders' Equity Ordinary Shares Capital in Excess of par value (1,019,894) 1,504, ,689 Statutory Equity Retained Earnings 1,482,820 (98,579) (104,727) Currency translation adjustment Accumulated other comprehensive income/loss Total shareholders' equity 462,926 1,406, ,963 Total liabilities and shareholders' equity 526,845 4,060, ,164

17 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 17 of 27 MOR-3 Unaudited Balance Sheet (See Notes to the MOR related to MOR-3) ASSETS Current assets Total Cash and Cash Equivalents Accounts Receivable Prepaid Expenses & Deposits Taxes Receivable Total Other Current Assets Total current assets Restricted cash (Long Term) Other long-term assets Long Term Notes & Investments Gross PPE Accumulated Depreciation Property and Equipment Finance Company Leasing (Switzerland) GmbH do Brasil Ltda ,923 1, ,315 18, , , ,734 31,445 4,105,589 - (0) 4,105,589 - (0) - 151,830 2,629 - (132,063) (2,623) - 19,767 6 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current Maturities & Short Term Debt Accounts Payable Payroll and Benefits Related Accruals Taxes Payable Interest Payable Other Current Liabilities Total current liabilities Total Long-Term Debt Deferred Taxes Other NonCurrent Liabilities Liabilities Subject to Compromise Total liabilities 4,107, ,501 31,452 13,878 76, , , ,104 1,001-3,164 77, , ,353 10, , , , ,424 Shareholders' equity Shareholders' Equity Ordinary Shares Capital in Excess of par value Statutory Equity Retained Earnings Currency translation adjustment Accumulated other comprehensive income/loss Total shareholders' equity Total liabilities and shareholders' equity (9) 3,530,901 (72,168) 5,517 (136,260) 99,088 (104,029) (18,451) 3,394,641 26,920 (116,972) 4,107, ,501 31,452

18 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 18 of 27 MOR-3 Unaudited Balance Sheet (See Notes to the MOR related to MOR-3) ASSETS Current assets Total Cash and Cash Equivalents Accounts Receivable Prepaid Expenses & Deposits Taxes Receivable Total Other Current Assets Total current assets Restricted cash (Long Term) Other long-term assets Long Term Notes & Investments Gross PPE Accumulated Depreciation Property and Equipment Paragon International Finance Company Paragon Asset (ME) Ltd. Holdings US Inc. 102,921 3,943,353 70,597 19,905 (9) 4,175 (98) 36,332-4,046, ,929 24,080 4,290, (1,339,443) 4,290, (1,339,443) Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current Maturities & Short Term Debt Accounts Payable Payroll and Benefits Related Accruals Taxes Payable Interest Payable Other Current Liabilities Total current liabilities Total Long-Term Debt Deferred Taxes Other NonCurrent Liabilities Liabilities Subject to Compromise Total liabilities 8,336, ,979 (1,315,363) 61,747 5,262,386 2,631 15, , ,326,108 2,631 15,593 33, ,327 5,367,088 2,631 15,593 Shareholders' equity Shareholders' Equity Ordinary Shares Capital in Excess of par value Statutory Equity Retained Earnings Currency translation adjustment Accumulated other comprehensive income/loss Total shareholders' equity Total liabilities and shareholders' equity - 0-2,928,906 44,301 (538,589) 40,778 60,047 (792,367) 2,969, ,348 (1,330,957) 8,336, ,979 (1,315,363)

19 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 19 of 27 MOR-3 Unaudited Balance Sheet (See Notes to the MOR related to MOR-3) ASSETS Current assets Total Cash and Cash Equivalents Accounts Receivable Prepaid Expenses & Deposits Taxes Receivable Total Other Current Assets Total current assets Restricted cash (Long Term) Other long-term assets Long Term Notes & Investments Gross PPE Accumulated Depreciation Property and Equipment Paragon Asset (UK) Ltd. Paragon FDR Holding Ltd. International Ltd , ,444 1,060,221 1, ,022 12, , ,466 1,075, ,651 8, ,651 8,183 21,629 (13,824) 7,805 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current Maturities & Short Term Debt Accounts Payable Payroll and Benefits Related Accruals Taxes Payable Interest Payable Other Current Liabilities Total current liabilities Total Long-Term Debt Deferred Taxes Other NonCurrent Liabilities Liabilities Subject to Compromise Total liabilities 171, ,117 1,091, ,447 3, , , , ,494 3, , ,494 3, ,538 Shareholders' equity Shareholders' Equity Ordinary Shares Capital in Excess of par value Statutory Equity Retained Earnings Currency translation adjustment Accumulated other comprehensive income/loss Total shareholders' equity Total liabilities and shareholders' equity 5, , ,021 9,580 10,448 (134,905) 73 14, , , , ,117 1,091,727

20 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 20 of 27 MOR-3 Unaudited Balance Sheet (See Notes to the MOR related to MOR-3) ASSETS Current assets Total Cash and Cash Equivalents Accounts Receivable Prepaid Expenses & Deposits Taxes Receivable Total Other Current Assets Total current assets Restricted cash (Long Term) Other long-term assets Long Term Notes & Investments Gross PPE Accumulated Depreciation Property and Equipment (North Sea) Ltd. Paragon Duchess Ltd. Paragon (Middle East) Limited 243,459 1, , ,000 (39,337) 243,772 2, ,613 - (47,110) 2,207 - (47,110) 2, ,439 (0) - (390,566) 12-87,873 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current Maturities & Short Term Debt Accounts Payable Payroll and Benefits Related Accruals Taxes Payable Interest Payable Other Current Liabilities Total current liabilities Total Long-Term Debt Deferred Taxes Other NonCurrent Liabilities Liabilities Subject to Compromise Total liabilities 243,784 (44,897) 428, ,571 7,615 55,354 4,707 (327) ,244 7,615 61, ,244 7,615 61,411 Shareholders' equity Shareholders' Equity Ordinary Shares Capital in Excess of par value Statutory Equity Retained Earnings Currency translation adjustment Accumulated other comprehensive income/loss Total shareholders' equity Total liabilities and shareholders' equity 9,565 37,044 68,267 18,975 (89,556) 299,015 28,540 (52,513) 367, ,784 (44,897) 428,693

21 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 21 of 27 MOR-3 Unaudited Balance Sheet (See Notes to the MOR related to MOR-3) ASSETS Current assets Total Cash and Cash Equivalents Accounts Receivable Prepaid Expenses & Deposits Taxes Receivable Total Other Current Assets Total current assets Restricted cash (Long Term) Other long-term assets Long Term Notes & Investments Gross PPE Accumulated Depreciation Property and Equipment (Luxembourg) S.a r.l. Paragon Holding NCS 2 S.a r.l. Paragon Leonard Jones LLC 7 274,337 53,706 98, , ,365 56,467 98,754 (1,506) 43,108 48,191 (1,506) 43,108 48,191 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current Maturities & Short Term Debt Accounts Payable Payroll and Benefits Related Accruals Taxes Payable Interest Payable Other Current Liabilities Total current liabilities Total Long-Term Debt Deferred Taxes Other NonCurrent Liabilities Liabilities Subject to Compromise Total liabilities 272,859 99, , ,751 61,109 84, ,047-9, ,755 70,760 86, ,755 70,760 86,758 Shareholders' equity Shareholders' Equity Ordinary Shares Capital in Excess of par value Statutory Equity Retained Earnings Currency translation adjustment Accumulated other comprehensive income/loss Total shareholders' equity Total liabilities and shareholders' equity 373,633 96, ,179 (373,529) (67,463) (75,992) ,816 60, ,859 99, ,945

22 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 22 of 27 MOR-3 Unaudited Balance Sheet (See Notes to the MOR related to MOR-3) ASSETS Current assets Total Cash and Cash Equivalents Accounts Receivable Prepaid Expenses & Deposits Taxes Receivable Total Other Current Assets Total current assets Restricted cash (Long Term) Other long-term assets Long Term Notes & Investments Gross PPE Accumulated Depreciation Property and Equipment PGN Offshore Drilling (Malaysia) Sdn. Bhd. (Nederland) B.V. Contracting GmbH 50 2, , , , , , , ,262 33,653 9,565 81,983 33,653 9,565 81,983 8,054-0 (1,144) - 0 6,910 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current Maturities & Short Term Debt Accounts Payable Payroll and Benefits Related Accruals Taxes Payable Interest Payable Other Current Liabilities Total current liabilities Total Long-Term Debt Deferred Taxes Other NonCurrent Liabilities Liabilities Subject to Compromise Total liabilities 40, , ,155 68, , ,835-1, ,067 13,814-3,123-68, , , , , , ,774 Shareholders' equity Shareholders' Equity Ordinary Shares Capital in Excess of par value Statutory Equity Retained Earnings Currency translation adjustment Accumulated other comprehensive income/loss Total shareholders' equity Total liabilities and shareholders' equity 14 (47,620) 12,794 60,000 19, ,437 35,281 - (335) 86-1,055 - (28,194) 188,952 95,381 40, , ,155

23 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 23 of 27 MOR-3 Unaudited Balance Sheet (See Notes to the MOR related to MOR-3) ASSETS Current assets Total Cash and Cash Equivalents Accounts Receivable Prepaid Expenses & Deposits Taxes Receivable Total Other Current Assets Total current assets Restricted cash (Long Term) Other long-term assets Long Term Notes & Investments Gross PPE Accumulated Depreciation Property and Equipment (Labuan) Pte. Ltd. Paragon Holding SCS 2 Ltd. Paragon Asset Company Ltd ,296 33, , ,630 (995) 10,329 42, ,797-2,472,889 67,089-2,472,889 67, ,767 (861,375) 135,392 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current Maturities & Short Term Debt Accounts Payable Payroll and Benefits Related Accruals Taxes Payable Interest Payable Other Current Liabilities Total current liabilities Total Long-Term Debt Deferred Taxes Other NonCurrent Liabilities Liabilities Subject to Compromise Total liabilities 10,329 2,515,878 1,150,279 10, , , (3) , , , , ,180-10, , ,172 Shareholders' equity Shareholders' Equity Ordinary Shares Capital in Excess of par value Statutory Equity Retained Earnings Currency translation adjustment Accumulated other comprehensive income/loss Total shareholders' equity Total liabilities and shareholders' equity 510 4,015, ,173 (482) (1,669,744) 251, ,345, ,107 10,329 2,515,878 1,150,279

24 In re PLC, et al. Case CSS Doc 1838 Filed 08/07/17 Page 24 of 27 MOR-3 Unaudited Balance Sheet (See Notes to the MOR related to MOR-3) ASSETS Current assets Total Cash and Cash Equivalents Accounts Receivable Prepaid Expenses & Deposits Taxes Receivable Total Other Current Assets Total current assets Restricted cash (Long Term) Other long-term assets Long Term Notes & Investments Gross PPE Accumulated Depreciation Property and Equipment Paragon Holding SCS 1 Ltd. Leasing (Luxembourg) S.a r.l. - 1, , , ,883 3, , ,828 1,230,952 (72,168) 1,230,952 (72,168) Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current Maturities & Short Term Debt Accounts Payable Payroll and Benefits Related Accruals Taxes Payable Interest Payable Other Current Liabilities Total current liabilities Total Long-Term Debt Deferred Taxes Other NonCurrent Liabilities Liabilities Subject to Compromise Total liabilities 1,476,445 58, ,443 - (68) - 84, , ,372 Shareholders' equity Shareholders' Equity Ordinary Shares Capital in Excess of par value Statutory Equity Retained Earnings Currency translation adjustment Accumulated other comprehensive income/loss Total shareholders' equity Total liabilities and shareholders' equity 9-1,325,327 1,519, ,830 (1,584,393) 1,476,166 (64,713) 1,476,445 58,659

25 Case CSS Doc 1838 Filed 08/07/17 Page 25 of 27 MOR-4 In re PLC, et al. Status of Post-Petition Taxes (See Notes to the MOR) plc (in administration) and its related debtor legal entities Beginning Tax Liability Amount Withheld or Accrued Amount Paid Ending Tax Liability Corporate Income Tax $ 6,077 $ 1,211 $ (236) $ 7,052 Payroll Tax 9, (432) 10,225 Withholding Tax (11,381) 37 (168) (11,511) Property Tax VAT Tax (9,530) 886 (432) (9,076) Other Tax 2,818 (1,619) (1) 1,199 Total Taxes $ (2,031) $ 1,187 $ (1,268) $ (2,111) Summary of Unpaid Post-Petition Debts (See Notes to the MOR) Debtor Case Number Current Over 61 Total Accounts Payable Drilling LLC $ 107 $ 24 $ 2 $ 455 $ 588 plc (in administration) Paragon Drilling Services 7 LLC Finance Company Leasing (Switzerland) GmbH (31) 4 do Brasil Ltda Paragon International Finance Company (686) (5) Paragon Asset (ME) Ltd Holdings US Inc Paragon Asset (UK) Ltd (2) (6) 409 Paragon FDR Holding Ltd International Ltd (North Sea) Ltd (2) 109 Paragon Duchess Ltd (8) (6) Paragon (Middle East) Limited (21) 379 (Luxembourg) S.a r.l Paragon Holding NCS 2 S.a r.l Paragon Leonard Jones LLC (0) 4 PGN Offshore Drilling (Malaysia) Sdn. Bhd (14) 9 (Nederland) B.V Contracting GmbH (21) (1) (Labuan) Pte. Ltd Paragon Holding SCS 2 Ltd Paragon Asset Company Ltd (0) (6) 298 Paragon Holding SCS 1 Ltd Leasing (Luxembourg) S.a r.l (30) (30) Total Accounts Payable $ 2,740 $ (185) $ 242 $ 1,285 $ 4,082

26 Case CSS Doc 1838 Filed 08/07/17 Page 26 of 27 MOR-5 In re PLC, et al. Post-Petition Accounts Receivable Reconciliation and Aging (See Notes to the MOR) ('000s) Debtor Case Number >90 Total Billed Accounts Receivable Billed Accounts Receivable Unbilled Accounts Receivable Other Accounts Receivable >90 Total Unbilled Accounts Receivable >90 Total Other Accounts Receivable Total Accounts Receivable (Gross) Allowance for Doubtful Accounts Total Accounts Receivable (Net) Trade Receivables Drilling LLC $ 2,259 $ 1,184 $ 6,561 $ 10,004 $ 1,119 $ - $ - $ 1,119 $ - $ - $ - $ - $ 11,122 $ (6,561) $ 4,561 plc (in administration) Paragon Drilling Services 7 LLC Finance Company Leasing (Switzerland) GmbH do Brasil Ltda (495) 97 Paragon International Finance Company Paragon Asset (ME) Ltd Holdings US Inc Paragon Asset (UK) Ltd ,673 1,673 1,569 1,569-3,242-3,242 Paragon FDR Holding Ltd International Ltd ,242 10,706 1, ,786 3,614-14,320 (5,826) 8,494 (North Sea) Ltd Paragon Duchess Ltd Paragon (Middle East) Limited ,805 3,852-12,657 5, ,188-17,845-17,845 (Luxembourg) S.a r.l Paragon Holding NCS 2 S.a r.l Paragon Leonard Jones LLC ,248 3,248 8,785 8,785-12,033 (12,033) (0) PGN Offshore Drilling (Malaysia) Sdn. Bhd (Nederland) B.V Contracting GmbH (Labuan) Pte. Ltd Paragon Holding SCS 2 Ltd Paragon Asset Company Ltd Paragon Holding SCS 1 Ltd Leasing (Luxembourg) S.a r.l Total Trade Receivables $ 16,449 $ 5,036 $ 16,803 $ 38,288 $ 9,747 $ 38 $ 11,083 $ 20,868 $ - $ - $ - $ - $ 59,155 $ (24,915) $ 34,240

27 Case CSS Doc 1838 Filed 08/07/17 Page 27 of 27 MOR-5 (Cont) In re PLC, et al. Debtor Questionnaire (See Notes to the MOR) 1. Have any assets been sold or transferred outside the normal course of business during this reporting period? If yes, provide an explanation below. 2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below. 3. Have all post petition tax returns been timely filed? If no, provide an explanation below. 4. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below. 5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule Yes X X X No X X