Hercules Offshore Announces Settlement of Hercules 265 Property Damage Insurance Claim

Dec 23, 2013, 10:20 ET from Hercules Offshore, Inc.

HOUSTON, Dec. 23, 2013 /PRNewswire/ -- Hercules Offshore, Inc. (Nasdaq: HERO) announced that on December 20, 2013, the Company received payment from its insurance underwriters for the previously-disclosed damage to its Hercules 265 jackup drilling rig (the "Rig"). The Company's insurance underwriters determined that the Rig is a constructive total loss, and the Company received gross insurance proceeds of $50 million. As a result of this insurance collection, the Company anticipates recording an insurance gain of approximately $31 million in the fourth quarter 2013. The Company and its insurance underwriters continue to negotiate the insurance recovery amounts for costs related to the salvage of the Rig and certain other insured losses.

Also on December 20, 2013, the Company closed the sale of its Hercules 170 jackup drilling rig for a purchase price of $8.3 million. As a result of the sale, the Company expects to record an impairment charge of approximately $12 million in the fourth quarter 2013.

Headquartered in Houston, Hercules Offshore, Inc. operates a fleet of 39 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.



SOURCE Hercules Offshore, Inc.