Superior Cancels Ocean Flow Acquisition, Settles Toisa Puma Dispute

Superior Offshore International, Inc. has jointly agreed with Ocean Flow International L.L.C. to cancel a definitive merger agreement between the two companies. Ocean Flow is a privately held deepwater subsea project engineering and offshore project management services firm.

"While both companies decided that now is not the right time to complete the merger, our discussions have laid the groundwork for what we expect to be a closer cooperative relationship in future marketing opportunities for large projects requiring deepwater fabrication and construction, pipeline engineering and project management capabilities," said Superior Offshore President and Chief Executive Officer Jim Mermis.

Separately, Superior Offshore announced that it has settled a dispute over the charter of the DP-II vessel, Toisa Puma. Under the settlement agreement, Superior Offshore will pay the vessel owner an additional $4.2 million to terminate the two-year charter. This settlement will relieve Superior Offshore of any future charter payments that would have totaled approximately $27 million.