Hercules Offshore Announces Rig Management Agreement

Nov 07, 2013, 16:15 ET from Hercules Offshore

HOUSTON, Nov. 7, 2013 /PRNewswire/ -- Hercules Offshore (NASDAQ:  HERO) announced that it has entered into an agreement with a wholly-owned subsidiary of Perisai Petroleum Teknologi Bhd ("Perisai") to act as operations and maintenance manager of the Perisai Pacific 101 and Perisai Pacific 102, Perisai's newbuild Pacific Class 400 jack-up drilling rigs ("the Rigs"). The Rigs are currently under construction, with the Perisai Pacific 101 scheduled for delivery in July 2014 and the Perisai Pacific 102 about a year thereafter. Primary commercial terms of the agreement consist of the following:

  • Hercules will perform marketing, administrative, negotiation and rig operation services;
  • Hercules will receive a daily management fee equal to $4,000 per rig, payable starting at the commencement date;
  • Hercules will receive a daily operational fee equal to 12% of the daily EBITDA earned by the Rigs;
  • Hercules will be reimbursed for all operating expenses and Perisai will pay for all capital expenditures with respect to the Rigs;
  • Hercules has the right of first refusal to purchase the Rig(s).

About Hercules Offshore

Headquartered in Houston, Hercules Offshore, Inc. operates a fleet of 40 jackup rigs, including two Keppel FELS Super A high-specification, harsh-environment jackup rigs, and 24 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 several key shallow water provinces around the world. For more information, please visit our website at http://www.herculesoffshore.com.

Statements above that are not historical fact are forward-looking statements, including the length of the contracts, contract commencement and expiration dates, revenue amounts and rig delivery dates.  Forward-looking statements by their nature involve substantial risks, uncertainties and assumptions, including without limitation, shipyard, transportation and other delays, early termination by the customer pursuant to the contract or otherwise, operational difficulties, government and regulatory actions and other factors described in the risks and uncertainties described in our periodic reports filed with the Securities and Exchange Commission. Many of these factors are beyond our ability to control or predict. 

SOURCE Hercules Offshore