Atwood Announces Contract Suspension Plus a New Contract For ATWOOD HUNTER
August 15 2007 - 2:36PM
PR Newswire (US)
HOUSTON, Aug. 15 /PRNewswire-FirstCall/ -- Atwood Oceanics, Inc.
(NYSE:ATW), announced today that immediately upon the ATWOOD HUNTER
completing its current drilling program for Woodside Energy Ltd.
("Woodside") offshore Libya (estimated the end of August 2007) that
the Woodside contract will be suspended and the rig moved to Egypt
to commence working under a contract for Burullus Gas Co.
("Burullus"). The Burullus contract is expected to take 140 days to
complete (including mobilization and demobilization to the point of
origin in the Mediterranean Sea) with dayrates of $320,000 for the
first 90 days, $355,000 the next 35 days and $410,000 thereafter
(expected to be 15 days). Immediately upon completion of its work
in Egypt, the Woodside contract will be reinstated with the rig
expected to be moved to Mauritania at a dayrate of $240,000. Under
the contract suspension agreement with Woodside, the remaining
Woodside contract commitment will be reduced by a period equal to
50% of the days that the ATWOOD HUNTER works under the Burullus
contract up to a maximum of 70 days. Prior to the contract
suspension, the Woodside contract term was anticipated to be
completed in May 2008. Assuming the rig works for Burullus for the
expected 140 days, the Woodside contract commitment will be
extended 70 days to August 2008. The Woodside contract provides for
two (2) six month options at day rates to be mutually agreed. An
agreement for Woodside to use the rig beyond its current commitment
must be executed by 15 December 2007. Statements contained in this
report with respect to the future are forward-looking statements.
These statements reflect management's reasonable judgment with
respect to future events. Forward-looking statements involve risks
and uncertainties. Actual results could differ materially from
those anticipated as a result of various factors including; the
Company's dependence on the oil and gas industry; the risks
involved the construction of a rig; competition; operating risks;
risks involved in foreign operations; risks associated with
possible disruption in operations due to terrorism; risks
associated with a possible disruption in operations due to a war
with Iraq; and governmental regulations and environmental matters.
A list of additional risk factors can be found in the Company's
annual report on Form 10-K for the year ended September 30, 2006,
filed with the Securities and Exchange Commission. DATASOURCE:
Atwood Oceanics, Inc. CONTACT: Jim Holland of Atwood Oceanics,
Inc., +1-281-749-7804 Web site: http://www.atwd.com/
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