Marine 500 Status Update
Marine Drilling Companies Inc. announced that the MARINE 500 has completed its work for Chevron Australia Pty Ltd. ("Chevron") and has left Western Australia en route to India. Marine has letters of intent from two operators and is currently negotiating contracts, one for work in India and the other in the United Arab Emirates that are expected to keep the rig working throughout the remainder of the year. It is anticipated that the cash flow from these contracts, coupled with the subsidy from Chevron due as a result of early termination of its contract for the MARINE 500 will maintain the cash flow of approximately $127,500 per day. Additionally, Marine believes the contracts will cover the cost of mobilizing the rig to Asia and the Middle East. Once each contract is executed by the customer and Marine, it will be subject to further governmental approvals.
Jan Rask, president and chief executive officer of Marine, said, "We are pleased to be able to maintain our daily operating cash flow from the MARINE 500 with this work in Asia and the Middle East. The work currently under negotiation, also provides us an opportunity to get closer to West Africa where we believe the best long-term opportunities exist for this rig."