Atwood Beacon to Spin Bit Offshore Equatorial Guinea

The Atwood Beacon (owned and operated by our wholly-owned subsidiary, Atwood Oceanics Pacific Limited) has been awarded a contract by Hess Equatorial Guinea, Inc. to drill offshore Equatorial Guinea under a firm program of six (6) wells (estimated to take 240 days to complete) with options to extend the program to drill up to six additional wells. If all options are exercised, the drilling program could be extended for another 240 days.

The contract provides for an operating dayrate for all firm and option wells of $110,000 plus a mobilization fee of $950,000. In anticipation of this contract award, the rig had previously been relocated from India to Singapore; whereby, it is currently loaded on a dry transport vessel for the mobilization to Equatorial Guinea, which will take approximately thirty (30) days.

The total cost to relocate the rig from India to Singapore and then on to Equatorial Guinea is estimated to be around $7 million. This cost will be amortized over the 240 days estimated firm portion of the contract. The operating dayrate will be enhanced by amortization of the $950,000 mobilization fee over the 240-days estimated firm portion of the contract.