Geoffrey M. Hertel, President and Chief Executive Officer, stated, "TETRA has significantly expanded its offshore heavy lift fleet to accommodate the unprecedented demand for well abandonment and decommissioning activities in the Gulf of Mexico. This demand increase is a reflection of three primary factors: (1) the catch-up of work deferred during property sales in 2003 and 2004, (2) destroyed and damaged platforms, wells and pipelines from hurricanes Katrina and Rita, and (3) the escalation of work due to the risks posed by future storms and associated increasing insurance costs.
"We made the strategic decision to increase our fleet to service our existing base load and the upcoming needs of our clients. TETRA has purchased the derrick barge DB-1 from Offshore Specialty Fabricators, Inc. for $20 million. Additionally, we have chartered the derrick barge Anna IV on a long term basis.
"The DB-1 is immediately being taken to a shipyard where it will begin modifications, as well as incur expenditures to extend its useful life. We anticipate the DB-1 will be operational on or about June 1, 2006.
"The Anna IV is currently under tow from Schiedarn, Netherlands. We anticipate this vessel will be working prior to March 15, 2006.
"Our Southern Hercules has recently undergone extensive modifications to make her an ideal Emergency Response Vessel, focusing on plugging hurricane damaged wells. The modified Southern Hercules should begin to work this week.
"These three vessels will join our Arapaho heavy lift vessel (currently working), to address the unprecedented demand referred to above. We will now be able to offer our clients additional conventional well abandonment and decommissioning services, as well as emergency response services (both shallow and deepwater) for damaged platforms, wells and pipelines.
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