ENSCO Reports Damage to Jackup

ENSCO International, Inc. reported Monday that ENSCO 107, a KFELS Mod V-B jackup, sustained damage while pre-loading on a drilling location offshore Vietnam. No personnel were injured and there was no environmental impact.

The company said that a preliminary inspection indicated relatively minor damage to the rig, which was been safely jacked down and at press time was under tow to Vung Tau, Vietnam. ENSCO anticipates that the rig will move to the Keppel FELS shipyard in Singapore for repairs. Repair costs above a $5.5 million deductible are expected to be covered by insurance.

ENSCO 107 is under contract to the Korean National Oil Co. for a seven-well program offshore Vietnam. Pending further review and evaluation, it is unknown when the rig will return to work. Very preliminary initial estimates, however, suggest an approximate 60-day suspension of operations. ENSCO does not expect the incident to have a material impact upon the company's operations results.

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