Atwood Keeping Its Rigs Busy

Atwood Oceanics reports that the Atwood Southern Cross has been awarded contracts by BG International Limited, Isramco and ENI SpA AGIP Exploration & Production Division to drill one firm well for each company in the Mediterranean Sea. The BG and Isramco contracts provide for a dayrate of $60,000. The ENI contract provides for a day rate of approximately US $73,000. The ENI contract also provides for one option well. All wells are expected to take 45 days to complete except for the Isramco well which has an estimated duration of 30 days. The three contracts provide for a combined mobilization fee and other lump sum advance payments of approximately $9.0 million.

The Atwood Southern Cross is expected to complete its current drilling program for Daewoo Daewoo in Myanmar by the end of May 2005. Upon completion of its current drilling program, Daewoo will provide a tow vessel to move the rig to Singapore. After completion of a survey which is expected to take approximately one week, the rig will then be moved to the Mediterranean Sea which will take approximately 60 days. Upon arriving in the Eastern Mediterranean Sea, the rig will drill one well each for BG and Isramco, estimated to take 60 to 90 days to complete. The rig will then enter a shipyard for approximately 30 days to undergo certain required inspections, Italian certification and equipment upgrades prior to commencing the ENI contract. The ENI contract provides for a payment of $775,000 during this shipyard period, which is included in the lump sum payments total referred to above.

The Atwood Eagle is currently working under a contract with Woodside Energy offshore Australia which now includes the drilling of seven firm wells after Woodside exercised its option to drill three additional wells. All seven wells have a dayrate ranging from $89,000 to $109,000, depending upon water depths of each well. Woodside has also been provided with options to drill three additional wells with a dayrate of approximately $180,000 for the first option well and approximately $160,000 for the last two option wells. Upon completion of the current Woodside program (estimated September 2005), the rig will drill one firm well for BHP Billiton Petroleum, with BHP having an option to drill one additional well. If Woodside exercises its three option wells, the rig will then return to Woodside after BHP's one firm and one option well program to drill three wells before commencing BHP's second commitment of eight firm wells, with four (4) additional option wells. If all option wells are drilled, the combined Woodside and BHP drilling programs could extend into 2007.