Pareto Securities Oil & Offshore Conference

Pareto Securities Oil & Offshore Conference September 2-3, 2015 Oslo, Norway www.paragonoffshore.com

Safe Harbor Statement This material contains statements that are forward looking statements about Paragon s business and financial performance. These statements can be identified by the fact that they do not relate strictly to current or historical facts. Each future projection is a forward looking statement that involves certain risks, uncertainties and assumptions. These include but are not limited to operational risks, actions by regulatory authorities or other third parties, costs and difficulties related to the separation, market conditions, financial results and performance, tax rates, ability to repay debt and timing thereof, actions by customers and other third parties, factors affecting the level of activity in the oil and gas industry, supply and demand of drilling rigs, factors affecting the duration of contracts, the actual amount of downtime, factors that reduce applicable dayrates, violations of anticorruption laws, the future price of oil and gas, plans for the remaining Prospector rigs under construction, and other factors including those detailed in Paragon s filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. Paragon disclaims any duty to update the information presented here. www.paragonoffshore.com 2

The Million Dollar Question for Investors...there are known knowns, i.e., there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns-ones we do not know we don t know. www.paragonoffshore.com 3

Industry Outlook The current market is bleak Near term outlook will continue to be murky Current oil price does not support increased drilling activity The rig supply is expanding, but is chasing fewer jobs Oil companies have slashed their cap-ex budgets Traditional consumers of rigs are pre-occupied with other issues Oil prices will stay low until OPEC reduces its output Non-OPEC production hasn t rolled over Shipyards are full of uncontracted rig under construction, both floaters and jack-up Scrapping of old or obsolete rigs has accelerated But, as a reminder, this is a cyclical business Paragon s strength: marketing and operations Significant liquidity to weather the storm Reduced drilling inevitably reduces production Oil actual demand is stronger than originally forecasted Oil supply exceeds demand but this is not 1985 NOC s (e.g. Pemex and Petrobras) rely on the revenue from offshore wells Workover/development wells are currently ~85% of rig activity Long-standing customer relationships provide contract renewals despite the difficult environment Cost reductions maintained operating margins despite lower utilization The Prospector sales leaseback provided almost $300 million in cash Availability on the Company s revolver Paragon C20051 Reducing cap-ex budgets, tax planning and other reductions to preserve cash www.paragonoffshore.com 4

Overview of Paragon Offshore Business Overview Worldwide Offshore Presence Offshore contract drilling services provider Spin-off from Noble Corporation completed August 1, 2014 Headquartered in Houston, TX and incorporated in the United Kingdom Mexico Jackups: 5 Canada Hibernia Platform Operations West Africa Jackups: 2 North Sea Semis: 1 Jackups: 9 Middle East Jackups: 5 East Africa Jackups: 1 India/Asia Drillships: 1 Jackups: 3 Acquired Norwegian firm Prospector Offshore in November 2014 Brazil Drillships: 2 Semis: 1 6/30/2015 Estimated EBITDA* by Region West / East Africa 10% Middle East 12% Mexico 6% India / Asia 3% North Sea 41% Operating* Fleet Composition Jackups: 25 Drillships: 3 Semisubmersibles: 2 Brazil 28% * See Appendix for reconciliation to EBITDA. Map and Operating Fleet do not include stacked rigs. Total: 30 www.paragonoffshore.com 5

Strong Operations in a Difficult Environment Second Quarter and First Half 2015 Results 2 nd Quarter 1 st Half Contract Drilling Services Revenues: $363 million $763 million EBITDA: $158 million $325 million Net Income: $53 million $93 million Earnings per Share: $0.57 $1.02 FCF from Operations: $97 million $307 million Jackup Marketed Utilization: 64% 68% Average Jackup Dayrate: $123,556 $125,168 Floater Marketed Utilization: 100% 100% Average Floater Dayrate: $257,764 $267,110 Average operational downtime: 2.2% 2.1% Note: All Figures As Adjusted www.paragonoffshore.com 6

Many Accomplishments, But Cash on the Balance Sheet as of June 30: $112 million or 1.9X Market Cap + Revolver Capacity + Sale Leaseback Proceeds $292 million 2 nd Quarter EPS: $0.57 vs. $0.08 Analyst Estimates or a 600% Beat Paragon s Market Capitalization: ~$60 MM Expanded EBITDA Margin: 40.3% in 2Q vs 38.7% in 1Q 2 nd Quarter Cash Flow from Operations: $307 million or 1.7X Market Cap Backlog Added Since 2 nd Quarter Closed: $200 million or 3.3X Market Cap Outlook remains difficult www.paragonoffshore.com 7

Many Challenges Impacting Us Oil prices have taken another leg down amid concerns of $/BBL 65.00 60.00 55.00 50.00 45.00 40.00 www.paragonoffshore.com 8

Many Challenges Impacting Us Idle assets Customer Disputes Balance Sheet: Debt Concerns Oversupply of newbuild assets Well- Maintained, but Aging Fleet www.paragonoffshore.com 9

2015 Industry Backlog Additions In Millions $2,800 $2,400 $2,000 $1,600 $1,200 $800 $400 $0 $373 $282 $763 $1,005 $108 $90 $1,198 $1,199 $200 1Q2015 2Q2015 3Q2015 Paragon Industry Standard Spec Industry High Spec Source: IHS Petrodata 8.27.15; Company analysis 2015 Paragon Contract Awards and Extensions North Sea: Paragon C20051 Extended from early Dec. 2015 to late May 2016 Paragon C463 Backlog swapped with C462 and extended from early Dec. 2015 to late May 2016 Paragon C461 Extended from mid-nov. 2015 to mid-nov. 2017 Paragon C20052 New contract from early July 2015 to late Aug. 2015 Paragon C20052 Extended from early Feb. 2015 to mid-feb. 2015 and a new contract from early Sep. 2015 to mid-nov. 2015 Paragon C463 Extended from mid-feb. 2015 to early Sep. 2015 Paragon HZ1 New contract from early July 2015 to late Aug. 2016 Paragon MSS1 Extended from late June 2015 to late Dec. 2015 Middle East: Paragon B152 Extended from late Nov.2015 to late Nov. 2017 Paragon Dhabi II Extended from mid-july 2015 to mid-july 2017 Paragon L784 New contract from early June 2015 to early June 2018 India: Paragon MDS1 Extended from mid-april 2015 to mid-aug. 2015 West Africa: Paragon M826 New contract from mid-aug. 2015 to mid-dec. 2015 Paragon L782 New contract from late May 2015 to mid-sep. 2015 Paragon L783 Extended from early March 2015 to early May 2015 www.paragonoffshore.com 10

The Current Environment Rough Waters Ahead 2015 remains challenging Oil price has improved from YTD lows, but: 2015 customer budgets are largely fixed Some analysts predict a second oil price dip Some customers are continuing to reduce activity and/or cancel or renegotiate contractual arrangements Rigs continue to be retired/idled Newbuild units continue to be delayed by owners No guarantees 2016 will be better Oil price expectations going into 3Q/4Q will impact 2016 activity levels Overall industry cost structure has declined, improving investment returns Speculators in particular will be challenged Preparing for Lower for Longer www.paragonoffshore.com 11

Jackup Units Being Stacked Rather Than Retired/Scrapped Number of Rigs 140 120 100 Very few actual retirements so far; coldstacking has not dramatically increased 80 60 40 20 0 Jan 2014 Feb 2014 Mar 2014 Apr 2014 May 2014 Jun 2014 Jul 2014 Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014 Jan 2015 Cold stacked Hot +Warm Retired Feb 2015 Mar 2015 Apr 2015 May 2015 Source: IHS Petrodata 5.28.15 www.paragonoffshore.com 12

Newbuild Jackup Orders According to IHS August 25, 2015 160 120 130 Anticipated Jackup Deliveries 130 10 10 110 67 80 40 0 Total Newbuilds to be Delivered None built in China Contracted Rigs Rigs on Order/ Planned-No Contract Rigs Under Construction-No Contract 30 13 China Singapore Other (USA, UAE, India, Indonesia, Qatar) 90 80 70 60 50 40 30 20 10 0 54 * Uncontracted Forecasted Deliveries by Year Deliveries delayed 49 25 2015 2016 2017 2018 2019 2020 4 2 1 Other Countries* UAE* Singapore* China* Delivered 2015 YTD-Idle Contracted Source: Anticipated Jackup Deliveries and Forecasted Deliveries by Year - IHS Petrodata 8.25.15; Company analysis Status of Newbuilds Delivered - IHS Petrodata 6.18.15; Company analysis 8 7 31 74 5 10 30 25 20 15 10 5 0 Status of Newbuilds Delivered 2014 YTD 2015 4 26 5 13 2014 2015 Number of Units Contracted Idle Idle Rig Build Country USA, 1 UAE, 1 China, 3 Singapore, 4 New Working! www.paragonoffshore.com 13

Offshore, 43 Floaters Retired, Scrapped or Held for Sale Since January 2014 More to Come? Number of Rigs Average Age of Rigs 24 40 20 36 16 12 8 21 32 28 4 0 9 6 3 2 2 RIG DO ESV NE ATW PGN Floaters Retired, Scrapped or Held for Sale Average Age 24 20 Source: Tudor, Pickering, Holt & Co.; individual company reports 14

Our Focus Managing What We Can Control Maintaining and improving Safety Performance Continuing our industry-leading Operational Uptime Maximizing Utilization of our Rigs; Stacking Idle Rigs Quickly Preserving Financial Flexibility Reducing costs and Improving Efficiency Capitalizing on Opportunities www.paragonoffshore.com 15

Conclusion Why Paragon Offshore? Significant Scale, Size, and Expertise High Quality, Low Cost Drilling Contractor Strong Backlog and Established Diverse Customer Base Well-Maintained Workhorse Fleet of Rigs Opportunistic Acquirer Paragon HZ1 www.paragonoffshore.com 16

NYSE Listed: PGN 3151 Briarpark Drive Houston, TX 77042 832.783.4000 For additional information, contact: Lee M. Ahlstrom SVP-Investor Relations, Strategy & Planning lahlstrom@paragonoffshore.com www.paragonoffshore.com

Appendix www.paragonoffshore.com 18

2Q15 Reconciliation of As Reported Net Income (GAAP) to Adjusted Net Income (Non-GAAP) (In thousands, except per share amounts) (Unaudited) The following tables sets forth the reconciliation of adjusted net income (non-gaap) to net income: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net income attributable to Paragon Offshore $ 47,331 $ 95,048 $ 108,458 $ 219,611 Adjustments: (Gain) on repurchase of long-term debt - - (4,345) - (Gain) loss on disposal of assets, net 4,078 - (12,717) - Loss on impairment 1,701-1,701 - Adjusted net income $ 53,110 $ 95,048 $ 93,097 $ 219,611 Allocation of adjusted net income Basic and diluted Adjusted net income $ 53,110 $ 95,048 $ 93,097 $ 219,611 Earnings allocated to unvested share-based payment awards (1) (3,963) - (5,675) - Adjusted net income to ordinary shareholders - basic and diluted $ 49,147 $ 95,048 $ 87,422 $ 219,611 Weighted average number of shares outstanding - basic and diluted 85,836 84,753 85,549 84,753 Weighted average unvested share-based payment awards (1) 6,922-5,553 - Adjusted earnings per share Basic and Diluted $ 0.57 $ 1.12 $ 1.02 $ 2.59 (1) Our basis of presentation related to weighted average unvested shares outstanding for all periods prior to the Spin-Off does not include our unvested restricted stock units that were granted to our employees in conjunction with Paragon s 2014 Employee Omnibus Incentive Plan. As a result, we have no earnings allocated to unvested share-based payment awards in our earnings per share calculation for periods prior to the Spin-Off. www.paragonoffshore.com 19

2Q15 Reconciliation of As Reported Measures (GAAP) to As Adjusted Measures (Non-GAAP) (Unaudited) As Reported Rigs Retained or Sold by Noble As Adjusted Three Months Ended Three Months Ended Three Months Ended June 30, March 31, June 30, March 31, June 30, March 31, 2015 2014 2015 2015 2014 2015 2015 2014 2015 Operating revenues Contract drilling services $ 363,089 $ 462,334 $ 399,819 n/a $ 41,302 n/a $ 363,089 $ 421,032 $ 399,819 Labor contract drilling services 7,206 8,146 7,165 n/a 1,079 n/a 7,206 7,067 $ 7,165 Reimbursables and other 22,949 8,477 23,664 n/a - n/a 22,949 8,477 $ 23,664 393,244 478,957 430,648 n/a 42,381 n/a 393,244 436,576 430,648 Operating costs and expenses Contract drilling services 196,969 222,317 225,105 n/a 16,966 n/a 196,969 205,351 $ 225,105 Labor contract drilling services 5,681 6,223 5,613 n/a - n/a 5,681 6,223 $ 5,613 Reimbursables 18,678 5,224 19,978 n/a 496 n/a 18,678 4,728 $ 19,978 Depreciation and amortization 94,673 112,536 90,075 n/a 11,256 n/a 94,673 101,280 $ 90,075 General and administrative 13,737 12,683 15,364 n/a 1,144 n/a 13,737 11,539 $ 15,364 Loss on impairment 1,701 - - n/a - n/a 1,701 - $ - (Gain) loss on disposal of assets, net 4,078 - (16,795) n/a - n/a 4,078 - $ (16,795) (Gain) on repurchase of long-term debt - - (4,345) n/a - n/a - - $ (4,345) 335,517 358,983 334,995 n/a 29,862 n/a 335,517 329,121 334,995 Operating income 57,727 119,974 95,653 n/a 12,519 n/a 57,727 107,455 95,653 Other income (expense) Interest expense, net of amount capitalized (29,042) (2,972) (30,195) n/a - n/a (29,042) (2,972) (30,195) Interest income and other, net 169 338 2,265 n/a - n/a 169 338 2,265 Income (loss) before income taxes 28,854 117,340 67,723 n/a 12,519 n/a 28,854 104,821 67,723 Income tax benefit (provision) 18,477 (22,292) (6,565) n/a (1,336) n/a 18,477 (20,956) (6,565) Net income $ 47,331 $ 95,048 $ 61,158 n/a $ 11,183 n/a $ 47,331 $ 83,865 $ 61,158 Net (income)/loss attributable to non-controlling interests - - (31) n/a - n/a - - (31) Net income attributable to Paragon Offshore $ 47,331 $ 95,048 $ 61,127 n/a $ 11,183 n/a $ 47,331 $ 83,865 $ 61,127 Adjustments: Depreciation and amortization 94,673 101,280 90,075 Loss on impairment 1,701 - - (Gain) loss on disposal of assets, net 4,078 - (16,795) (Gain) on repurchase of long-term debt - - (4,345) Interest expense, net of amount capitalized 29,042 2,972 30,195 Income tax (benefit) provision (18,477) 20,956 6,565 EBITDA $ 158,348 $ 209,073 $ 166,822 www.paragonoffshore.com 20

2Q15 As Reported and As Adjusted Operational Information (Unaudited) As Reported Rigs Retained or Sold by Noble As Adjusted Three Months Ended Three Months Ended Three Months Ended June 30, March 31, June 30, March 31, June 30, March 31, 2015 2014 2015 2015 2014 2015 2015 2014 2015 Rig fleet operating statistics (1)(2) Jackups: Average Rig Utilization 64% 76% 71% n/a 50% n/a 64% 78% 71% Marketed Utilization (3) 64% 78% 71% n/a 50% n/a 64% 80% 71% Operating Days 1,989 2,492 2,174 n/a 91 n/a 1,989 2,401 2,174 Average Dayrate $ 123,556 $ 113,125 $ 126,646 n/a $ 98,625 n/a $ 123,556 $ 113,675 $ 126,646 Floaters: Average Rig Utilization 83% 78% 83% n/a 100% n/a 83% 75% 83% Marketed Utilization (3) 100% 100% 100% n/a 100% n/a 100% 100% 100% Operating Days 455 637 450 n/a 91 n/a 455 546 450 Average Dayrate $ 257,764 $ 283,221 $ 276,560 n/a $ 355,174 n/a $ 257,764 $ 271,229 $ 276,560 Total: Average Rig Utilization 67% 76% 73% n/a 67% n/a 67% 75% 73% Marketed Utilization (3) 69% 82% 74% n/a 67% n/a 69% 83% 74% Operating Days 2,444 3,129 2,624 n/a 182 n/a 2,444 2,947 2,624 Average Dayrate $ 148,537 $ 147,752 $ 152,353 n/a $ 226,899 n/a $ 148,537 $ 142,864 $ 152,353 (1) (2) (3) We define average rig 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. Information reflects our policy of reporting on the basis of the number of available rigs in our fleet. Amounts exclude the Paragon FPSO1. Marketed utilization excludes the impact of Paragon cold-stacked rigs for the current quarter. www.paragonoffshore.com 21

June 30, 2015 Summary Balance Sheet Assets (in thousands) Cash $112,359 Total Current Assets $568,022 PPE, Net $2,318,460 Other Assets $138,365 Total Assets $3,024,847 Liabilities and Equity Total Current Liabilities $349,283 Long-term Debt $1,984,421 Deferred income taxes $39,034 Other Liabilities $53,945 Total Liabilities $2,426,683 Total Equity $598,164 Total Liabilities and Equity $3,024,847 Source: Company s Quarterly Earnings Press Release for June 30, 2015 www.paragonoffshore.com 22

Paragon Offshore Debt Maturity Profile Excluding Prospector Financing In Millions $800 $7 $700 $600 $365 $500 $400 $300 $200 $435 $609 $457 $527 $100 $0 $3 $7 $7 $7 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 $7 Undrawn Revolver at 6/30/15 Revolver drawn at 6/30/15 Term Loan (including required amortization) Senior Notes www.paragonoffshore.com 23

Combined Amortization Schedule for Prospector 1 & Prospector 5 Refinancing www.paragonoffshore.com 24

Paragon s Standard Specification Activity at a Glance 100% 80% 60% 40% 20% 0% 6 31 63 13 20 27 30 53 Split by Rig Activity 65 68 13 5 Mexico Brazil North Sea West Africa 50 50 India 3 41 53 Middle/Far East Workover Development Exploration Other 14 46 39 Total Rigs surveyed in January 2015; results reflect most recent 10 well activities Significant workover activity where standard jackups should have cost and performance advantage vs. new/higher spec jackups 100% 80% 60% 40% 20% 0% 100 Split by Oil vs. Gas 67 65 33 35 10 11 90 Mexico Brazil North Sea West Africa 100 India 89 Middle/Far East 23 77 Total Little exploration concentrated in India, Europe, West Africa Heavily weighted to oil except North Sea and Brazil where local gas markets strong Oil Gas www.paragonoffshore.com 25