Global Leader in International Oil and Gas Industry News

posted in:

  • Home>
  • Oil & Gas News
  • >
  • North America,
  • >
  • Hercules Offshore announces agreement to acquire jackup rig Ben Avon and letter of agreement for a three-year drilling contract
Hercules - www.youroilandgasnews.com

Hercules Offshore announces agreement to acquire jackup rig Ben Avon and letter of agreement for a three-year drilling contract

Friday, Feb 22, 2013

HOUSTON, Feb. 21, 2013 /PRNewswire/ -- Hercules Offshore, Inc. (Nasdaq: HERO) announced today the execution of an agreement to acquire the offshore drilling rig Ben Avon from a subsidiary of KCA Deutag. The purchase price is $55 million in cash. The Ben Avon is a LeTourneau Class 82 SD-C self-elevating drilling rig registered and flagged in Panama.  Subject to completion of certain closing conditions, the Company expects the acquisition to close by late-March 2013.

Hercules Offshore also announced that it has signed a Letter of Agreement ("LOA") for a three-year rig commitment with Cabinda Gulf Oil Company Limited ("CABGOC") for use of the Ben Avon. The Company expects to generate total revenue of approximately $119 million over this three-year period under the contract.  Subject to the execution of a mutually agreed drilling contract, the Company expects the rig to commence work as early as May 2013.

John T. Rynd, Chief Executive Officer and President of Hercules Offshore stated, "We are very pleased to be able to acquire the Ben Avon and execute an LOA with CABGOC. With this transaction, we continue to opportunistically expand our international presence and scale, add significant long term backlog and cash flow, and reaffirm our commitment to CABGOC, a key global client, at economics that are beneficial for all parties. The LOA for the Ben Avon replaces our prior contract with CABGOC for the Hercules 185, at a substantial improvement in dayrate and provides for a new full three year term. The Ben Avon is a well-maintained rig that recently completed an extensive five year special survey. Given the good condition of the rig, and its close proximity to the drilling location, we expect to spend only minimal additional capital to get it on contract."

Additional Information
Headquartered in Houston, Hercules Offshore, Inc. operates a fleet of 37 jackup rigs, 13 barge rigs and 63 liftboats. The Company offers a range of services to oil and gas producers to meet their needs during drilling, well service, platform inspection, maintenance, and decommissioning operations in several key shallow water provinces around the world.

Hercules Offshore currently holds 32.1% of share capital in Discovery Offshore S.A., a pure play, ultra-high specification jackup rig company.  For more information, please visit our website at http://www.herculesoffshore.com.

The news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are subject to a number of risks, uncertainties and assumptions, including the factors described in Hercules Offshore's most recent periodic reports and other documents filed with the Securities and Exchange Commission, which are available free of charge at the SEC's website at http://www.sec.gov or the Company's website at http://www.herculesoffshore.com. Hercules Offshore cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements.

SOURCE Hercules Offshore, Inc.

To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today

posted in:

  • Home>
  • Oil & Gas News
  • >
  • North America,
  • >
  • Hercules Offshore announces agreement to acquire jackup rig Ben Avon and letter of agreement for a three-year drilling contract

Other Oil & Gas News

Air Products to Feature Its Range of Industrial Gas Supply Options and Advanced Gas Technologies at PTXi 2014 24-04-2014
FAR Ltd provides an update on current drilling program in Senegal and future plans in Kenya 24-04-2014
Hess announces sale of Thailand oil and gas assets 24-04-2014
Energid's Actin Software Revolutionizes Oil and Gas Exploration 24-04-2014
Bakken Energy Corp Begins Negotiation to Buy Oil Refinery in Southern Utah Uinta Basin 24-04-2014
Ferus Natural Gas Fuels Acquires Encana's Share in Alberta LNG Plant 24-04-2014
Fincantieri Offshore chooses AVEVA software for a revolutionary project 24-04-2014
Gazprom and Austria discuss alternative Russian gas routes to Europe 24-04-2014
APPEA: Time to lift barriers on New South Wales natural gas development 24-04-2014
BP to sell interest in four Alaska North Slope oil and gas assets 24-04-2014