Chiles Offshore LLC announced that the company has executed a Letter of Intent for use of the Chiles Magellan. The Letter of Intent calls for the drilling of one well in more than 300 feet of water in the U.S. Gulf of Mexico, which is anticipated to take approximately 120 days and is expected to start between December 1, 1999 and April 30, 2000. The rig is scheduled for delivery in September 1999 after completion of final outfitting, which will include the extension of the legs from 477 feet to 544 feet.