Ocean Lexington Set Adrift as a Result of Hurricane Lili

Diamond Offshore Drilling Inc. reported that its semisubmersible, Ocean Lexington, as a result of Hurricane Lili, parted its moorings. The rig drifted approximately 45 miles before apparently grounding in an estimated water depth of 35 feet offshore Louisiana.

As a part of normal hurricane procedures, the rig and well were secured in anticipation of storm conditions. All personnel had been evacuated to shore base locations earlier in the week.

The Company is in the process of conducting a detailed assessment of the Ocean Lexington and any estimate of damages or related repairs is expected to take several days to complete.

Indications are that Hurricane Lili passed directly over the Ocean Lexington's location reportedly as a category 4 storm.