NuCoastal Buys More Time for Atwood Vicksburg in Thailand

Atwood Oceanics noted that the Vicksburg (owned and operated by our wholly-owned subsidiary, Atwood Oceanics Pacific Limited) has been awarded a three month contract extension by NuCoastal (Thailand) Limited ("NuCoastal") to continue to drill offshore Thailand under a firm program which will now extend to the end of March 2010. This contract extension provides for two (2) options to extend the program an additional three (3) months which must be exercised by January 4, 2010 and an additional six (6) months which must be exercised by April 1, 2010. The dayrate will remain at its current level of $90,000 for the extended drilling program and for all option periods. If all options are exercised, the drilling program could extend to the end of December 2010.