Vanco Hires the Atwood Southern Cross for Work in the Black Sea

Atwood Oceanics' Atwood Southern Cross, owned and operated by its wholly-owned subsidiary, Atwood Oceanics Pacific Limited, has been awarded a contract by Vanco International Ltd. to drill one firm well with an option to drill one additional well in the Black Sea off the coast of Ukraine. Revenues from the contract are estimated at US$13 Million (based upon the single firm well plus some rig mobilization time totaling approximately 43 days) or US$26 Million if the option well is drilled.

Vanco will, in addition, provide a tow vessel during the rig mobilization phase of the project. The drilling of the one firm well is estimated to take around 40 days to complete and if the one option well is drilled, the program could extend another 40 days. This contract will commence immediately upon the rig completing its current commitments in the Black Sea for Melrose Resources, Toreador Turkey Limited and Turkiye Petrolleri A.O. (the Vanco contract may commence as early as August 2007 or as late as January 2008, depending upon the exercise of previous option wells).