<SUBMISSION>
<ACCESSION-NUMBER>0000950129-08-001800
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20080313
<ITEMS>8.01
<ITEMS>9.01
<FILING-DATE>20080319
<DATE-OF-FILING-DATE-CHANGE>20080319
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>NABORS INDUSTRIES LTD
<CIK>0001163739
<ASSIGNED-SIC>1381
<IRS-NUMBER>980363970
<STATE-OF-INCORPORATION>D0
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-32657
<FILM-NUMBER>08699620
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>MINTFLOWER PLACE
<STREET2>8 PAR-LA-VILLE ROAD
<CITY>HAMILTON, HM08
<STATE>D0
<ZIP>0000
<PHONE>2464219471
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>P O BOX HM3349
<CITY>HAMILTON, HMPX
<STATE>D0
<ZIP>0000
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>h55093e8vk.htm
<DESCRIPTION>FORM 8-K - CURRENT REPORT
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>Form&nbsp;8-K</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Date of Report (Date of earliest event reported) March&nbsp;13, 2008</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>NABORS INDUSTRIES LTD.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 0pt">(Exact name of registrant as specified in its charter)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Bermuda</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>001-32657</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>98-0363970</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">(State or Other Jurisdiction of Incorporation or Organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center"><B>Mintflower Place</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center"><B>8 Par-La-Ville Road</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center"><B>Hamilton, HM08</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Bermuda</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>N/A</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>(441)&nbsp;292-1510</B><BR>
(Registrant&#146;s telephone number, including area code)
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>N/A</B><BR>
(Former name or former address, if changed since last report.)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR>
</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;8.01</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Other Events.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On
March&nbsp;19, 2008, Nabors Industries Ltd. (the &#147;Company&#148;) announced that the United States District
Court for the Southern District of Texas has granted preliminary approval of the previously
disclosed proposed settlement of <I>Karstedt v. Isenberg, et al</I>., Civil Action No.&nbsp;4:07-cv-00509 (S.D. Tex.), a
consolidated shareholder derivative action that alleges various claims for relief in connection
with the Company&#146;s granting of certain historical stock options.
The proposed settlement was previously disclosed in a Current Report
on Form&nbsp;8-K that was filed with the U.S. Securities and Exchange
Commission on January&nbsp;4, 2008. The proposed settlement is
subject to final Court approval. The Court has set a final approval hearing for May&nbsp;14, 2008 at
10:00&nbsp;a.m. in the courtroom of the Hon. David Hittner, United States District Judge. The Court&#146;s
Preliminary Approval Order requires the Company to provide a detailed notice to shareholders of the
terms of the proposed settlement on a Current Report on Form 8-K. The
required notice is attached as Exhibit 99.1 hereto. This
detailed notice also contains important information regarding the rights of shareholders with
respect to the proposed settlement.
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;9.01</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Financial Statements and Exhibits.</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">NOTICE OF PROPOSED SETTLEMENT OF DERIVATIVE ACTION, <BR>
HEARING THEREON, AND RIGHT TO APPEAR</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">NABORS INDUSTRIES LTD.<BR>
&nbsp;<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: March 19, 2008&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Mark Andrews&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Mark Andrews&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Corporate Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">NOTICE OF PROPOSED SETTLEMENT OF DERIVATIVE ACTION,
HEARING THEREON, AND RIGHT TO APPEAR</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>h55093exv99w1.htm
<DESCRIPTION>NOTICE OF PROPOSED SETTLEMENT OF DERIVATIVE ACTION
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 99.1</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">UNITED STATES DISTRICT COURT
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SOUTHERN DISTRICT OF TEXAS
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">HOUSTON DIVISION
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">KENNETH H. KARSTEDT, Derivatively on<BR>
Behalf of NABORS INDUSTRIES LTD.,<BR>
<BR>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiff,<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vs.<BR>
<BR>
EUGENE M. ISENBERG, et al.,<BR>
<BR>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defendants,<BR>
<BR>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; and &#151;<BR>
<BR>
NABORS INDUSTRIES LTD., a Bermuda<BR>
corporation,<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nominal Defendant.<BR>
<BR>
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;<BR>
&#167;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Civil Action No.&nbsp;4:07-cv-00509<BR>
<B>(Consolidated)</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NOTICE OF PROPOSED SETTLEMENT OF DERIVATIVE ACTION, HEARING THEREON, AND RIGHT TO APPEAR</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><I>TO: ALL CURRENT RECORD HOLDERS AND BENEFICIAL OWNERS OF COMMON STOCK OF NABORS INDUSTRIES<BR>
LTD. (&#147;NABORS&#148; OR THE &#147;COMPANY&#148;) AS OF MARCH 6, 2008 (THE &#147;RECORD DATE&#148;) (&#147;CURRENT NABORS<BR>
SHAREHOLDERS&#148;).</I></B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><I>PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. THIS NOTICE RELATES TO A PROPOSED<BR>
SETTLEMENT AND DISMISSAL OF THE ABOVE-CAPTIONED SHAREHOLDERS&#146; DERIVATIVE ACTION (THE<BR>
&#147;ACTION&#148;) AND CONTAINS IMPORTANT INFORMATION REGARDING YOUR RIGHTS. YOUR RIGHTS MAY BE<BR>
AFFECTED BY THESE LEGAL PROCEEDINGS IN THE ACTION. IF THE COURT APPROVES THE SETTLEMENT,<BR>
YOU WILL BE FOREVER BARRED FROM CONTESTING THE APPROVAL OF THE PROPOSED SETTLEMENT AND FROM<BR>
PURSUING THE RELEASED CLAIMS (AS DEFINED HEREIN).</I></B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><I>IF YOU HOLD NABORS COMMON STOCK FOR THE BENEFIT OF ANOTHER, PLEASE PROMPTLY TRANSMIT THIS<BR>
DOCUMENT TO SUCH BENEFICIAL OWNER.</I></B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><I>THE COURT HAS MADE NO FINDINGS OR DETERMINATIONS CONCERNING THE MERITS OF THE ACTION. THE<BR>
RECITATION OF THE BACKGROUND AND CIRCUMSTANCES OF THE SETTLEMENT CONTAINED HEREIN DOES NOT<BR>
CONSTITUTE THE FINDINGS OF THE COURT. IT IS BASED ON REPRESENTATIONS MADE TO THE COURT BY<BR>
COUNSEL FOR THE PARTIES.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notice is hereby provided to you of the proposed settlement (the &#147;Settlement&#148;) in the Action.
This Notice is provided by Order of the United States District Court for the Southern District of
Texas, Houston Division (the &#147;Court&#148;). It is not an expression of any opinion by the Court. It is
to notify you of the terms of the proposed Settlement of the Action, and your rights related
thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>I. WHY
THE COMPANY HAS ISSUED THIS NOTICE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your rights may be affected by the Settlement of the Action styled <I>Karstedt, et al. v.
Isenberg, et al.</I>, Civil Action No.&nbsp;4:07-CV-00509. Plaintiffs Kenneth Karstedt and Gail McKinney
(&#147;Plaintiffs&#148;), Defendants Eugene M. Isenberg, Anthony G. Petrello, Bruce P. Koch, Daniel
McLachlin, Martin J. Whitman, Hans W. Schmidt, Myron M. Sheinfeld, James L. Payne, Alexander M.
Knaster and Jack Wexler (&#147;Individual Defendants&#148;), and Nabors (Nabors and the Individual Defendants
collectively, &#147;Defendants&#148;; Plaintiffs, Individual Defendants and Nabors, collectively &#147;Parties&#148;)
have agreed upon terms to settle the Action and have signed a written Stipulation of Settlement
(&#147;Stipulation&#148;) setting forth those settlement terms.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;14, 2008, at 10:00&nbsp;a.m., the Court will hold a hearing (the &#147;Final Hearing&#148;) in the
Action. The purpose of the Final Hearing is to determine: (i)&nbsp;whether the dismissal of the Action,
pursuant to the Stipulation, should be approved by the Court and a final judgment entered; (ii)
whether the Fee Award (as defined below) should be approved by the Court; and (iii)&nbsp;such other
matters as may be necessary or proper under the circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>II.
SUMMARY OF THE ACTION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;6, 2007 and March&nbsp;5, 2007, Plaintiffs Kenneth Karstedt and Gail McKinney filed,
respectively, Verified Shareholder Derivative Complaints against certain current and former
directors and officers of Nabors for allegedly granting backdated stock options. On March&nbsp;20,
2007, the Court entered an order consolidating for all purposes the related actions and appointing
Co-Lead Plaintiffs and Co-Lead Counsel for Plaintiffs. On June&nbsp;28, 2007, Plaintiffs filed their
Consolidated Verified Shareholder Derivative Complaint (&#147;Consolidated Complaint&#148;). Generally,
Plaintiffs allege that the Individual Defendants breached their fiduciary duties to the Company by
allegedly participating in the backdating of stock options and/or receiving backdated options,
unjustly enriched themselves, misused inside information to engage in stock transactions, wasted
corporate assets, mismanaged the corporation, and violated Sections&nbsp;10(b), 14(a), and 20(a) of the
Securities Exchange Act of 1934 (&#147;Exchange Act&#148;) and Securities and Exchange Commission (&#147;SEC&#148;)
Rule&nbsp;10b-5 by causing Nabors to issue false proxy statements and repurchase stock at inflated
prices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thereafter, counsel for Plaintiffs and Defendants (&#147;Parties&#148;) discussed the possible
resolution of the Action. Throughout the summer of 2007, the Parties engaged in extensive
arm&#146;s-length negotiations and discussions with regard to the possible settlement of the Action. As
a result of these discussions, on August&nbsp;29, 2007 and on multiple days thereafter, counsel for
Nabors and for Plaintiffs held formal mediation sessions before the Honorable Deborah Hankinson,
Justice of the Texas Supreme Court (Ret.). With the assistance of the mediator, and
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">outside of the mediation sessions, the Parties by and through their counsel, engaged in
extensive additional arm&#146;s-length negotiations and in further good-faith discussions with regard to
the possible settlement of the Action. The Parties ultimately reached an agreement-in-principle to
settle the Action, subject to Court approval, on the terms set forth in the Stipulation.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All Parties and their counsel concur that the Settlement described herein is fair, reasonable,
adequate and in the best interest of Nabors and Current Nabors Shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>III.
TERMS OF THE PROPOSED DERIVATIVE SETTLEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal terms, conditions and other matters that are part of the Settlement, which is
subject to approval by the Court, are summarized below. This summary should be read in conjunction
with, and is qualified in its entirety by reference to, the text of the Stipulation, which has been
filed with the Court.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To resolve the Action, and solely as a result of it, the Parties agreed as set forth in the
Stipulation as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;At the next regularly scheduled meeting of the Nabors Board of Directors (&#147;Board&#148;)
following issuance of an Order approving the Settlement of the Action, the Board shall adopt such
resolutions and amend such committee charters as necessary to incorporate the following provisions
into the Company&#146;s Corporate Governance Guidelines. Unless otherwise provided herein, these
provisions shall remain in effect for a period of three years; provided, however, that these
guidelines shall be of no further force or effect upon the occurrence of any of the following
events: (i)&nbsp;the primary trading market for the Company&#146;s common shares is no longer the New York
Stock Exchange or other United States stock exchange; (ii)&nbsp;there is a change in control of the
Company (as defined in the employment agreement for the Chief Executive Officer); or (iii)&nbsp;the
Company engages in a going private transaction or similar transaction in which a majority of the
shares of the Company outstanding on the date of this agreement are no longer outstanding.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BOARD COMPOSITION AND PRACTICES<BR>
Board Structure</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Board shall maintain the position of Lead Director, with specific duties and
responsibilities, unless the Board appoints an independent Chairman of the Board, in which case the
Board will re-evaluate the need for a Lead Independent Director and disclose its conclusions about
the continuing need for such a role.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each current standing committee of the Board shall maintain its written charter, which
shall continue to be available to the public on the Company&#146;s website. The charter for each such
committee of the Board shall require that the Committee meet at least four times per year, except
for the Technology and Safety Committee, which shall meet at least twice a year. The Company shall
publish the intended dates of the regularly scheduled board meetings for the next fiscal year. If
extraordinary circumstances prevent any committee from meeting this requirement, that committee
shall meet as soon as practicable thereafter and the extraordinary circumstances shall be explained
in the Company&#146;s next proxy statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Board shall retain the existing provisions in the Company&#146;s Bye-Laws providing that
director nominees shall be elected by the affirmative vote of the majority of votes cast at an
annual meeting of shareholders. Nothing in this paragraph shall prohibit the shareholders of the
Company from approving amendments to the Bye-Laws to require greater than a majority vote.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Director Independence</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;At least two-thirds of the members of the Board shall be &#147;independent directors,&#148; as
defined under applicable standards promulgated by the Securities and Exchange Commission and the
New York Stock Exchange.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Director Education</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Company shall make available on a regular basis to each member of the Board a schedule
of upcoming corporate governance and other director education programs
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">and shall encourage members of the Board to attend such programs at the Company&#146;s expense. On
at least a biennial basis, a presentation shall be made to the Board of Directors about recent
developments and best practices concerning corporate governance.</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>New Director and Process for Identifying Potential New Directors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Within one year, the Company shall add one new director, who shall be independent under
applicable New York Stock Exchange and SEC requirements, and who shall be qualified and agree to
serve on the Audit Committee. In identifying, considering and appointing director candidates for
this directorship, the Governance and Nominating Committee or their designee(s) shall use the
following procedure:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The Governance and Nominating Committee shall establish a set of criteria in conducting
the search for a new director described herein;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The Governance and Nominating Committee may authorize a nationally recognized search firm
experienced in director searches to propose qualified and experienced candidates to the Committee;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The Company&#146;s website will provide information regarding how any shareholder holding
more than five percent of the Company&#146;s common stock (&#147;qualified shareholder&#146;) may propose a
candidate, and the Secretary of the Company, after determining the proposal was made by a qualified
shareholder, shall promptly forward the name(s) of any such candidate(s) to the Governance and
Nominating Committee;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;The Governance and Nominating Committee shall evaluate the candidates identified through
the processes described in this paragraph and recommend at least one candidate to the Board of
Directors;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;If the Board of Directors, in its business judgment, agrees that one or more of the
candidates presented to it by the Governance and Nominating Committee is
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">satisfactory, then the candidate may be elected to the Board of Directors pursuant to the
Company&#146;s Bye-Laws.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The Company shall adopt a Charter for the Compensation Committee. The Compensation
Committee may review this policy from time-to-time and make such written amendments as it deems
appropriate in the best interests of the Company.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>STOCK OPTION PLANS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;The Board shall adopt a resolution providing that the Company shall adopt a revised Stock
Option/Restricted Stock Award Policy. The Compensation Committee may review this policy from
time-to-time and make such written amendments as it deems appropriate in the best interests of the
Company.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AUDIT COMMITTEE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;At least annually, prior to the filing of the Company&#146;s Annual Report on Form 10-K, the
Audit Committee shall meet with the Company&#146;s internal auditors and independent auditors to review
and discuss the Company&#146;s accounting for stock-based compensation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Stipulation also provides for the entry of judgment dismissing the Action against
Nabors and the Individual Defendants with prejudice and, as explained in more detail in the
Stipulation, barring and releasing certain known or unknown claims that have been or could have
been brought in any court by the Plaintiffs in the Action or by Nabors, or any of its shareholders,
against Nabors and the Individual Defendants relating to any of the claims or matters that were or
could have been alleged or asserted in any of the pleadings or papers filed in the Action or any
amendment thereof. The Stipulation further provides that the entry of judgment will bar and
release any known or unknown claims that have been or could have been brought in any court by the
Defendants against Plaintiffs or Plaintiffs&#146; Counsel related to any of the claims or matters that
were or could have been alleged or asserted in any of the pleadings or
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">papers filed in the Action or any amendment thereof or based upon or arising out of the
institution, prosecution, assertion, settlement, or resolution of the Action.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>IV.
PLAINTIFFS&#146; ATTORNEYS&#146; FEES AND EXPENSES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nabors, on behalf of all Defendants, has agreed, upon approval of the Court, that it will pay
or cause to be paid Plaintiffs&#146; Counsel&#146;s fees and expenses up to the sum of $2,850,000 (&#147;Fee
Award&#148;), subject to Court approval. The Fee Award includes fees and expenses incurred by
Plaintiffs&#146; Counsel in connection with the prosecution and settlement of the Action. To date,
Plaintiffs&#146; Counsel have not received any payments for their efforts on behalf of Nabors
shareholders. The Fee Award will compensate Plaintiffs&#146; Counsel for the results achieved in the
Action, and the risks of undertaking the prosecution of the Action on a contingent basis. The
Settlement, however, is not in any way conditioned upon the Court&#146;s approval of the Fee Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>V.
REASONS FOR THE SETTLEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Counsel for the Parties believe that the Settlement is in the best interests of the Parties to
the Action, Nabors, and Current Nabors Shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.
Why Did Plaintiffs Agree to Settle?</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiffs&#146; Counsel conducted an extensive investigation relating to the claims and the
underlying events and transactions alleged in the Action. Among other things, this included the
production of non-public documents by the Defendants to Plaintiffs and the interview of certain
employees or agents of Nabors. Plaintiffs&#146; Counsel have analyzed the evidence adduced during their
investigation, and have researched the applicable law with respect to the claims of Plaintiffs,
Current Nabors Shareholders and Nabors against the Defendants and the potential defenses thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon their investigation as set forth above, Plaintiffs and their counsel have concluded
that the terms and conditions of the Stipulation are fair, reasonable and adequate to Plaintiffs,
Current Nabors Shareholders, and Nabors, and in their best interests, and have agreed
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">to settle the claims raised in the Action pursuant to the terms and provisions of the
Stipulation after considering, among other things: (a)&nbsp;the substantial benefits that Current Nabors
Shareholders and Nabors have received or will receive from the Settlement, (b)&nbsp;the attendant risks
of continued litigation of the Action, (c)&nbsp;actions taken by the Company and its Board of Directors
in response to alleged options dating issues at Nabors, and (d)&nbsp;the desirability of permitting the
Settlement to be consummated.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In particular, Plaintiffs and their counsel considered the significant litigation risk
inherent in this shareholder derivative Action. The law imposes significant burdens on plaintiffs
for pleading and proving a shareholder derivative claim. While Plaintiffs believe their claims are
meritorious, Plaintiffs acknowledge that there is a substantial risk that the Action may not
succeed in producing a recovery in light of the applicable legal standards and possible defenses.
Plaintiffs and their counsel believe that, under the circumstances, they have obtained the best
possible relief for Nabors and Current Nabors Shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.
Why Did the Defendants Agree to Settle?</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Defendants have strenuously denied, and continue strenuously to deny each and every
allegation of liability made against them in the Action, and assert that they have meritorious
defenses to those claims and that judgment should be entered dismissing all claims against them
with prejudice. In addition, Nabors has maintained that this Action may not proceed as a matter of
applicable Bermuda law. The Defendants have thus entered into the Stipulation solely to avoid the
continuing additional expense, inconvenience, and distraction of this burdensome litigation and to
avoid the risks inherent in any lawsuit, and without admitting any wrongdoing or liability
whatsoever or conceding that these claims may be properly maintained in the United States.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>VI.
FINAL HEARING</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;14, 2008, at 10:00&nbsp;a.m., the Court will hold the Final Hearing before the Honorable
David Hittner at the United States District Court for the Southern District of Texas, Houston
Division, United States Courthouse, 515 Rusk Avenue, Courtroom 8A, Houston, Texas 77002. At the
Final Hearing, the Court will consider whether the Settlement is fair, reasonable and adequate and
thus should be finally approved and whether the Action should be dismissed with prejudice pursuant
to the Stipulation. The Court also will rule upon the Fee Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>VII.
RIGHT TO ATTEND FINAL HEARING</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any Current Nabors Shareholder may, but is not required to, appear in person at the Final
Hearing. If you want to be heard at the Final Hearing in opposition to the Settlement or the Fee
Award in the Action, then you must first comply with the procedures for objecting, which are set
forth below. The Court has the right to change the hearing dates or times without further notice.
Thus, if you are planning to attend the Final Hearing, you should confirm the date and time before
going to the Court. <B><I>CURRENT NABORS SHAREHOLDERS WHO HAVE NO OBJECTION TO THE SETTLEMENT DO NOT
NEED TO APPEAR AT THE FINAL HEARING OR TAKE ANY OTHER ACTION.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>VIII.
RIGHT TO OBJECT TO THE SETTLEMENT AND PROCEDURES FOR DOING SO</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You have the right to object to any aspect of the Settlement. You must object in writing, and
you may request to be heard at the Final Hearing. If you choose to object, then you must follow
these procedures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.
You Must Make Detailed Objections in Writing</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any objections must be presented in writing and must contain the following information:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
Your name, legal address, and telephone number;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.
Proof of being a Current Nabors Shareholder as of the Record Date;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.
The date(s) you acquired your Nabors shares;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.
A detailed statement of your specific position with respect to the matters to be heard at the
Final Hearing, including a statement of each objection being made;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.
The grounds for each objection or the reasons for your desiring to appear and to be heard;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.
Notice of whether you intend to appear at the Final Hearing (this is not required if you have
lodged your objection with the Court); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.
Copies of any papers you intend to submit to the Court, along with the names of any
witness(es) you intend to call to testify at the Final Hearing and the subject(s) of their
testimony.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Court will not consider any objection that does not substantially comply with these
requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.
You Must Timely Deliver Written Objections to the Court, Plaintiffs&#146;
Counsel, and Defendants&#146; Counsel</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;YOUR WRITTEN OBJECTIONS MUST BE ON FILE WITH THE CLERK OF THE COURT NO LATER THAN APRIL 30,
2008. The Court Clerk&#146;s address is:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. District Clerk<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Southern District of Texas, Houston Division<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;515 Rusk Avenue<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Houston, TX 77002
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;YOU ALSO MUST DELIVER COPIES OF THE MATERIALS TO PLAINTIFFS&#146; COUNSEL AND COUNSEL FOR
DEFENDANTS SO THEY ARE RECEIVED NO LATER THAN APRIL 30, 2008. Counsel&#146;s addresses are:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Darren J. Robbins<BR>
Ellen Gusikoff Stewart<BR>
James I. Jaconette<BR>
Coughlin Stoia Geller<BR>
&nbsp;&nbsp;Rudman &#038; Robbins LLP<BR>
655 West Broadway, Suite&nbsp;1900<BR>
San Diego, CA 92101
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wilson Sonsini Goodrich &#038;
Rosati, P.C.<BR>
Douglas J. Clark<BR>
Jerome F. Birn, Jr.<BR>
Gregory L. Watts<BR>
650 Page Mill Road<BR>
Palo Alto, CA 94304</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Court will not consider any objection that is not timely filed with the Court or not timely
delivered to Plaintiffs&#146; Counsel and counsel for Defendants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any Person or entity who fails to object or otherwise request to be heard in the manner
prescribed above will be deemed to have waived the right to object to any aspect of the Settlement
or otherwise request to be heard (including the right to appeal) and will be forever barred from
raising such objection or request to be heard in this or any other action or proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>IX.
HOW TO OBTAIN ADDITIONAL INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Notice summarizes the Stipulation. It is not a complete statement of the events of the
Action or the Stipulation. Although the Parties believe that the descriptions about the Settlement
that are contained in this Notice are accurate in all material respects, in the event of any
inconsistencies between the descriptions in this Notice and the Stipulation, the Stipulation will
control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may inspect the Stipulation and other papers in the Action at the United States District
Clerk&#146;s office at any time during regular business hours of each business day. The Clerk&#146;s office
is located at 515 Rusk, Houston, Texas 77002. However, you must appear in person to inspect these
documents. The Clerk&#146;s office will not mail copies to you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PLEASE DO NOT CALL, WRITE, OR OTHERWISE DIRECT QUESTIONS TO EITHER THE COURT OR THE CLERK&#146;S
OFFICE. Any questions you have about matters in this Notice should be directed by telephone or in
writing to Plaintiffs&#146; Counsel, Darren J. Robbins, Ellen Gusikoff Stewart, and James J. Jaconette,
at the address set forth above.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DATED March&nbsp;13, 2008
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    <TD align="left" valign="top">BY ORDER OF THE COURT<BR>
UNITED STATES DISTRICT COURT<BR>
SOUTHERN DISTRICT OF TEXAS</TD>
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