Atwood Falcon Awarded Contract

Atwood Oceanics, Inc. announced that Sarawak Shell Berhad and Sabah Shell Petroleum Company Ltd have awarded the Atwood Falcon a Contract to drill five (5) wells plus options for Shell to drill up to five (5) additional wells off the coast of Malaysia. The Atwood Falcon is currently drilling its final well under its three-year contract with Shell Philippines Exploration B.V. Immediately upon completion of its current contract, the rig will be moved to Malaysia to commence the drilling program for Shell which could extend approximately one-year if all ten wells are drilled. The contract provides for a dayrate of $73,300 for the five firm wells and approximately $83,300 for the five option wells, with a mobilization payment of $250,000.