Pride International to Sell Two Jackups
|Thursday, September 30, 2004
Pride International expects the previously disclosed sale of the jackup rig Pride West Virginia to occur late in the fourth quarter of 2004 after the rig has completed its current charter and has been relocated to a port in Dubai. The sales price for the rig is $60 million in cash.
Pride also announced that it has entered into a letter of intent to sell its cold-stacked, mechanical, mat-supported jackup rigs Pride Kentucky and Pride Illinois for $11 million in cash, subject to various conditions, including the negotiation and execution of a definitive purchase agreement. The purchaser has indicated its intention to use the rigs as mobile offshore production units. In accordance with the letter of intent, the purchaser will be restricted from using the rigs as drilling units. In addition to the cash proceeds, Pride will retain specified drilling equipment currently on the rigs.
Proceeds from both of these transactions will be used to reduce debt.