Hercules Goes In On Jackup Rigs

By Houston Business Journal

Hercules Offshore Inc. has made a $10 million investment in a new jackup rig company based in Luxembourg.

As part of the deal, Discovery Offshore SA will build two ultra high-specification jackup rigs, with options for two additional jackup rigs.

In addition, Houston-based Hercules (NASDAQ: HERO) will sign construction management and service agreements with Discovery Offshore, which will compensate Hercules to oversee the construction, marketing and operations of rigs owned by Discovery, plus corporate administrative functions as needed.

Keppel FELS will build the rigs in Singapore. Costs are estimated at $231 million per rig, while the optional two will cost $213 million and $215 million, respectively.

John Rynd, president and CEO of Hercules, said in a statement that the move ⿿marks a new and exciting chapter in our company⿿s history.⿝

The two rigs are expected to be delivered by the mid-2013.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/houston/news/2011/01/25/hercules-goes-in-on-jackup-rigs.html?ana=thestreet

Copyright bizjournals.com 2010

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