Hercules Offshore to Divest Land Rig Fleet
Hercules Offshore, Inc. has entered into agreements with Petrex Sudamerica Sucursal de Venezuela S.A. and Saipem Perfuracoes e Construcoes Petroliferas Lda. (collectively, "Saipem") for the sale of its nine land rigs and related assets. The Land Assets include six land rigs in Venezuela, one in Trinidad and two in the United States. The purchase price is approximately $107 million and the transaction is expected to close late in the fourth quarter of 2007.
Randy Stilley, Chief Executive Officer and President of Hercules Offshore, commented, "In fitting with our long-stated strategy of focus on shallow water oilfield services, I am pleased we reached this agreement to sell the land rig fleet, that was formerly part of TODCO, such a short time after closing on the acquisition of TODCO. In the coming months, we expect to identify attractive opportunities to reinvest the proceeds from the sale into assets in our core business."
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