Atwood Hunter Awarded Contract Offshore Egypt

Atwood Oceanics, Inc. has been awarded an eleven well contract (plus options) from Burullus Gas Company, a joint operating company formed by the Egyptian General Petroleum Corporation, BG International Limited and Edison International S.p.A. The wells will be drilled in the Egyptian territorial waters of the Mediterranean Sea.

The Atwood Hunter is currently in the shipyard in Mobile, Alabama undergoing an approximate $50 million water-depth upgrade and refurbishment. Immediately upon completing its upgrade in October 2001 the rig will be loaded on a heavy lift vessel to commence an approximate 30-day transport to Egypt at an estimated cost of $2.0 million. The drilling program is expected to take between 280 and 340 days to complete, with dayrates for the first three wells ranging from $100,000 to $110,000 and a dayrate of $90,000 for the remaining eight completion wells.