HOUSTON, Jan. 30 /PRNewswire-FirstCall/ -- Hercules Offshore, Inc.
(Nasdaq: HERO) announced that it signed a definitive purchase agreement on
January 26, 2006 to acquire the rig ARIES (formerly the THE 154) from Aries
Offshore Partners Ltd. for $20.1 million. The rig, a 150-foot independent leg
jackup built by LeTourneau in 1979, has been cold-stacked for the past six
years. The closing of the acquisition is expected to occur during February
2006. After closing, the rig will be renamed Hercules Rig 26, and the Company
will begin a reactivation project that will include upgrades of the drilling
equipment and living quarters capacity. Hercules expects the reactivation
project to take up to one year and to cost approximately $20 million. Upon
completion of the reactivation, the Company plans to deploy the rig in a
suitable international market.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050601/DAW092LOGO )
Randy Stilley, Chief Executive Officer and President of Hercules Offshore,
noted today, "The acquisition of Rig 26 is consistent with our strategy of
acquiring existing shallow water assets, and we are already in discussions
with customers for possible contract opportunities for the unit outside the
U.S. Gulf of Mexico."
Also, Hercules announced that on January 25, 2006 it entered into a
Consent, Release, Waiver and Amendment (the "Amendment") to its Credit
Agreement dated as of June 29, 2005. The Amendment provides for, among other
things, the release of the guaranty, security agreement and vessel mortgages
relating to Rig 16 and Rig 31, which have been transferred to one of Hercules'
Cayman Island subsidiaries. The Amendment permits the Company to advance up
to $20 million to its Cayman subsidiaries and permits the Company to invest an
additional $25 million in its foreign subsidiaries.
The Amendment provides Hercules with additional flexibility in contracting
Rig 16 and Rig 31 (and Rig 26 upon its activation) in markets outside the U.S.
Steve Manz, Chief Financial Officer of Hercules, noted, "The establishment of
our international subsidiaries and the restructuring of our Credit Agreement
will help facilitate our efforts to expand Hercules international operations
and provide Hercules with a structure that will enable us to compete more
effectively outside the U.S."
In addition, on January 25, 2006, Hercules entered into a Second Amendment
to the Credit Agreement to extend the expiration date of the period during
which we must pay a 1% prepayment premium in connection with certain
prepayments of its term loans from June 29, 2006 to December 31, 2006.
Headquartered in Houston, Hercules Offshore, Inc. owns a fleet of nine
jackup drilling rigs and 46 liftboats. The company offers a range of services
to oil and gas producers to meet their needs during drilling, well service,
platform inspection, maintenance, and decommissioning operations in shallow
waters.
For more information, please visit our website at
http://www.herculesoffshore.com .
SOURCE Hercules Offshore, Inc.
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Related links:
http://www.herculesoffshore.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20050601/DAW092LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Stephen M. Butz, Director of Corporate
Development of Hercules Offshore, Inc., +1-713-979-9832
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