Atwood Lands Contracts for the Eagle & Falcon

Atwood Oceanics reports that Sarawak Shell has reinstated a contract to utilize the ATWOOD FALCON to drill two firm wells with options to drill three additional wells offshore Malaysia. The dayrate for all wells drilled will vary with the water depths of the wells: $83,300 for water depths in excess of 2,500 feet; $68,300 for water depths between 1,000 feet and 2,500 feet and $53,000 for water depths less than 1,000 feet. This drilling program should commence around August 1, 2004 with the drilling of the two firm wells expected to take approximately 60 days to complete. If all three options wells are drilled, the program could extend into December 2004.

The Company also announced that Woodside Energy Ltd. has awarded the ATWOOD EAGLE a contract to drill two firm wells, with an option to drill one additional well, offshore Australia; however, Woodside has the option to only drill one well in the event that due to an extension in the rig's current drilling program Woodside cannot drill both firm wells before the end of November 2004. The contract provides for a dayrate of $89,000 for all wells drilled in up to 600 meters of water. This drilling program will commence immediately upon the rig completing its current drilling program for BHP Billiton Petroleum Pty. and Apache Energy Limited which is currently estimated to be in August 2004. The drilling of the two firm wells is estimated to take approximately 100 days to complete.