After sitting on the sidelines all year, the Atwood Southern Cross, a 2nd generation, midwater semi, appears likely to return to work in 2010. Although a formal contract is still subject to regulatory approval, Atwood announced that the rig was selected by AuDax, an Australian oil and gas and mining company, to drill one exploration well in the April - September 2010 time frame. While not yet finalized, our sources indicate the dayrate is likely to shake out between $130-$160,000, and given the rig's current location in Spain and the amount of time the rig has been idle, mobilization reimbursement is not likely to constitute much of the consideration. While this particluar award is unlikely to keep the rig active for more than a month or two, Atwood believes more work will be available following this initial assignment.

Mariner Energy has hired the Rowan Bob Palmer, a 550' IC jackup, to drill and complete one well in South Marsh Island Block 150. The dayrate for the work is in the low-$60s. Industry sources have indicated that Rowan is bidding this rig for work outside of the U.S. Gulf of Mexico. The rig could head to the North Sea or possibly the Middle East in early 2010.