Vantage has entered into a letter of intent for the Sapphire Driller, subject to final customer approval for a three well drilling program in West Africa, with an option for a fourth well. The anticipated duration of the contract is for four months with operations commencing as soon as the Sapphire Driller can be mobilized to the new drilling location. Estimated revenues to be generated over the initial term of the contract are approximately $15.2 million.
Vantage has also entered into a contract amendment with its customer in Côte d'Ivoire providing the customer the option to reinstate the existing contract for the Sapphire Driller once political conditions in Côte d'Ivoire improve. The customer must exercise the option before April 15, 2011.
Our customer for the Aquamarine Driller operating in the Philippines has announced the abandonment of its current well program and given Vantage a 90 day notice of termination as provided for under the contract. Vantage is currently working with customers on other near-term contract opportunities.
Our customer for the Topaz Driller has exercised the option for an additional well which we anticipate will keep the rig operating in Vietnam until June 2011. Following the completion of this contract, we anticipate that the rig will enter the shipyard for upgrades before starting the previously announced two well program in Malaysia.
Paul Bragg, President and Chief Executive Officer, commented, "We are happy to have quickly resolved the issues for the Sapphire Driller and to get the rig back to operations as quickly as possible. While we are disappointed that our customer in the Philippines was unable to continue with the current drilling program, we wish them continued success in their efforts and look forward to working with them in the future. With the continued strength in the high-specification jackup market, we are evaluating alternative work and believe we will be able to contract the Aquamarine Driller during the 90 day notice period."
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