Preliminary approval has been granted to a consolidated shareholder derivative action against the world's largest onshore oil and gas drilling contractor.

Bermuda-based Nabors Industries Ltd. has already agreed to policy changes as part of a settlement with shareholders who sued over the company's past stock option grant practices.

The proposed settlement is subject to final approval by senior judge David Hittner in the Southern Texas District Court on May 14, 2008.

A filing with the US Securities and Exchange Commission (SEC) stated that Nabors agreed to "implement certain corporate governance reforms, a new equity award policy, and a modified Compensation Committee charter", as part of the settlement.

As required by the Court's Preliminary Approval Order, Nabors file a current report with the SEC on Thursday. The report, which can be found at www.sec.com, provides shareholders with detailed notice of the terms of the proposed settlement. The notice also contains important information regarding the rights of shareholders with respect to this proposed settlement.

The Nabors companies own and actively market a fleet of approximately 535 land drilling and approximately 737 land workover and well-servicing rigs in North America.