The company has received allegations relating to improper payments to foreign government officials beginning a number of years ago in connection with certain overseas operations, along with corresponding accounting entries and internal control issues. The Audit Committee of Pride's Board of Directors is overseeing an investigation of these allegations by outside counsel.
At this time, the company does not know whether the allegations will be substantiated and, if so, who may be implicated or what impact the allegations or the investigation may have on the company, the company's business, or the company's financial statements.
Given the ongoing investigation and the recent discovery of evidence in the matter, the company has concluded that it cannot file its Form 10-K for the year ended December 31, 2005, until additional information is obtained.
Pointing out that the investigation is being pursued "aggressively," the company states that it cannot now determine whether it will be able to file its Form 10-K before March 31--the expiration of the 15-day extension period contemplated by Pride's Form 12b-25 to be filed with the US Securities and Exchange Commission.
The company expects to release preliminary fourth-quarter and full-year results for 2005 on Thursday of this week. In addition, Pride President and CEO Louis A. Raspino will lead a conference call on Friday morning to discuss the results.
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