HOUSTON, Feb. 1, 2011 /PRNewswire/ -- ATWOOD OCEANICS,
INC., a Houston-based
international drilling contractor (NYSE: ATW), announced that, on
January 29, 2011, due to the civil
unrest that has occurred in Egypt,
our customer, RWE Dea Nile GmbH gave notice to Alpha Offshore
Services Company, a wholly-owned subsidiary of Atwood Oceanics,
Inc., of a force majeure event affecting the operations of the
Atwood Aurora which is presently operating offshore
Egypt in the Mediterranean
Sea.
Provisions of the drilling contract provide for a day rate of
70% of the current operating rate of $133,000 during the first 15 days of the force
majeure event. Thereafter, 50% of the operating rate will
apply, up to remediation of the force majeure event or contract
termination, whichever occurs first. The drilling contract
can be terminated by either party after a 30 day period of a
continuing force majeure event.
We have secured the well and are in the process of halting
offshore operations.
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 in the construction of a rig and commencement of
operations of the rig following delivery; competition; operating
risks; risks involved in foreign operations; risks associated with
possible disruption in operations due to terrorism, acts of piracy,
embargoes, war or other military operations; and governmental and
industry 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, 2010, filed with the Securities and Exchange
Commission.
SOURCE Atwood Oceanics, Inc.