Atwood Oceanics to Build New Jackup

Atwood Oceanics has entered into an agreement with Keppel FELS Limited, to construct a KFELS Mod V enhanced B-class jackup in Singapore. The jackup will be built to work in up to 350 feet water depth, and will include, among other items, a 70 feet cantilever, accommodations for 112 beds, three 2,200 horsepower mud pumps and self-positioning fixation system. The expected completion date for the rig is June, 2003 with a total cost, including owner furnished equipment and capitalized interest, of approximately $125 million. The construction of the jackup will be financed through the company's existing credit facility and cash on hand.