DryShips' Ocean Rig UDW subsidiary signed a $77 million contract with
Borders & Southern Petroleum
for a two-well exploration and drilling pact in the offshore Falkland Islands area for a period of 90 days, beginning in the fourth quarter of 2011.
>>DryShips Trades Higher on Drill Deal
There were three further optional wells that could extend the contract by 135 days.
The dry-bulk shipper and deepwater drill-ship operator recently posted better-than-expected quarterly earnings.
DryShips reported earnings of 18 cents per share
, or $49 million. Excluding one-time items the income number would have come in at $99 million, or 38 cents per share, easily besting the consensus Wall Street estimate of 25 cents per share.
Quarterly revenue inched higher by 1.4% to $225.2 million from a year ago, also beating expectations.
>>DryShips Tops Views; Stock Jumps
The company finally made good this fall on promises regarding its long-floundering drilling business, inking contracts on several vessels that had still required financing.
DryShips CEO George Economou issued a rosy outlook on that score as well, saying, "The ultra deepwater market has turned a corner in the last couple of months and we believe that current enquiry from operators matches or may even exceed the supply available in 2011."
(DSX - Get Report)
traded lower as well Wednesday.
recently gave the shipper a healthy buy rating.
>>Diana Shipping Cruises on Buy Rating