The contract for the Hercules 258 is expected to commence in the middle of the second quarter of 2008, following the completion of an existing contract commitment offshore India.
The contract for the Hercules 260 is expected to commence late in the first quarter of 2008, following the completion of shipyard work on the rig. The company has entered into a contract to transport the Hercules 260 to India after completion of the shipyard work and expects to commence transportation in December 2007.
Revenue that could be generated over each of the three-year contracts totals approximately $121 million for Hercules 258 and approximately $156.6 million for Hercules 260, which excludes payment to the company of reimbursable expenses and a total of approximately $6.5 million for the mobilization of both rigs.
Randy Stilley, president and CEO of Hercules Offshore, said: We are extremely pleased to further accomplish our ongoing goals of expanding our international presence and significantly increasing our contract backlog. These contracts confirm our belief that India represents an excellent location for our drilling rigs, and that demand for our drilling services in our targeted international locations remains strong.
