HOUSTON, July 17 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
announced today that its subsidiaries, Reading & Bates Development Co.
("DEVCO") and R&B Falcon Subsea Development Inc. ("R&B Subsea"), have
concluded sales to Enterprise Oil of their Gulf of Mexico E&P properties, with
an effective date of July 1, 2000.
Under the terms of the agreements, DEVCO has sold its 50% working interest
in the Boomvang field development and, subject to final closing and, where
applicable, certain consents and preferential rights, will sell its interests
in 19 other Gulf of Mexico deepwater exploration blocks and R&B Subsea will
sell its 100% working interest in Gyrfalcon field. The total cash
consideration for the sales is $127.25 million.
Paul B. Loyd, Jr., Chairman and Chief Executive Officer of R&B Falcon
Corporation said, "We are very pleased to conclude this transaction with
Enterprise for our Gulf of Mexico properties. DEVCO's exploration efforts
have been very successful over the past year and one-half, and the DEVCO sale
partially unlocks the considerable, unrecognized value we have built there.
We have been working for some time to monetize all or part of DEVCO, and we
believe our patience in waiting for the right time and the right buyer has
clearly paid off for R&B Falcon shareholders. Proceeds from the sales will be
utilized to strengthen our balance sheet. We wish Enterprise success in their
strategy of developing the Gulf of Mexico into a core business area."
R&B Falcon Corporation operates the world's largest fleet of marine-based
drilling rigs servicing the international oil and gas industry. Its fleet is
composed of 139 drilling units including the industry's largest fleets of
barge and jackup rigs, and a fleet of semisubmersibles and drillships which is
among the cost capable in the world. R&B Falcon also provides turnkey and
integrated services and operates mobile production units, internationally
based land rigs and an offshore towing business.
SOURCE R&B Falcon Corporation
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http://www.rbfalcon.com
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CONTACT:
Charles Ofner of R&B Falcon Corporation,
281-496-5000
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