Atwood Oceanics Secures Two-Year Contract for Vicksburg

Atwood Oceanics reports that the Vicksburg has been awarded a two year contract by ExxonMobil Exploration and Production Malaysia Inc. ("EMEPMI") for operations off the coast of Malaysia, with EMEPMI having the right to terminate the contract after one year at any time with a 120 days notice period. The operating dayrate is $64,500, with EMEPMI having an option for one additional year at a mutually agreed dayrate.

The contract provides for EMEPMI to reimburse the Company for approximately $3.6 million of certain modifications and equipment upgrades to be performed on the rig, which is expected to take at least 18 days to complete, prior to it commencing the drilling program. The contract provides for the Company to receive a dayrate of $52,000 for 18 days during the upgrade period. The Vicksburg completed its contract with Carigali-Triton Operating Company on September 1, 2002 and is currently undergoing the modifications and upgrades for the EMEPMI contract.