between its wholly-owned subsidiary, Norex Drilling, and oil/gas firm Zapata Corporation.

Under the agreement, Norex loaned Zapata $82.625 million under senior secured and senior convertible notes and purchased 15 million shares of Zapata common stock and 17.5 million shares of Zapata exchangeable preference stock for a total price of $28.75 million.

The move increased Norex America's stake in Zapata from four percent to 13 percent.

Mr. Kristian Siem, chairman and CEO of Norex, said: "We believe that our assistance in the refinancing of Zapata's debt represents an outstanding investment opportunity with an expected return on investment consistent with the goal set by our management and a reasonable level of risk.'' Mr. Siem is a former chairman and CEO of Bermuda Star Line, which used to run cruise ships between New York and Bermuda.

Norex America, a Cayman Islands-registered company which operates in Bermuda as a permit company, is currently engaged in investments in debt and equity securities issued by companies in the oil and gas industry.

The company is an affiliate of the London-listed Norex marine investment and insurance broking group.

Zapata, which has traditionally been involved in the offshore rig and offshore support sectors of the oil industry, has been steadily moving into the gas services industry.