HOUSTON, Sept. 13, 2011 /PRNewswire/ -- Hercules Offshore, Inc. (Nasdaq : HERO ) announced today that it has acquired an additional 6.1 million shares of Discovery Offshore S.A. ("Discovery Offshore") at an average price of NOK9.02 per share. With this latest purchase, Hercules Offshore has invested a total of approximately $34.1 million in Discovery Offshore, and currently holds a 28% ownership interest in Discovery Offshore.
"Since our initial investment in Discovery Offshore in January 2011, the fundamentals of the offshore drilling industry have strengthened, and demand for ultra high-specification jackup rigs remains exceptionally strong," said John T. Rynd, President and Chief Executive Officer of Hercules Offshore. "Once delivered in 2013, these rigs will be among the most technically capable jackups worldwide, servicing a growing niche market that requires the advanced capabilities these rigs can provide. Initial discussions with customers confirm our confidence in the rig design, and the robust demand that we anticipate for these rigs for the foreseeable future."
Discovery Offshore is a Luxembourg-based company, focused on ownership of ultra high-specification jackup rigs. Discovery Offshore currently has two ultra high-specification jackup rigs under construction at Keppel FELS in Singapore, with delivery scheduled during the second and fourth quarter of 2013. Discovery Offshore also holds options for two additional jackup rigs. Hercules Offshore is overseeing the construction, marketing and operations of rigs owned by Discovery Offshore, as well as performing other corporate administrative functions required by Discovery Offshore.
The information and statements made in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements concerning the business of the Company and Discovery Offshore and estimated dates for completion of construction of the Rigs. Such statements are subject to a number of risks, uncertainties and assumptions associated with the Company's and Discovery Offshore's business, development, growth management, financing, market acceptance, and relations with suppliers, customers, the ability to successfully negotiate contracts, shipyard and other delays and cost overruns, and general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, and government and regulatory actions and other factors described in the Company's annual report on Form 10-K and its most recent periodic reports and other documents filed with the Securities and Exchange Commission, which are available free of charge at the SEC's website at www.sec.gov or the company's website at www.herculesoffshore.com. The Company cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements.
About Hercules Offshore
Headquartered in Houston, Hercules Offshore, Inc. operates a fleet of 49 jackup rigs, 17 barge rigs, 65 liftboats, two submersible rigs, and one platform rig. 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. Hercules Offshore currently holds 28% of share capital in Discovery Offshore, a pure play, ultra-high specification jackup rig company. For more information, please visit our website at http://www.herculesoffshore.com.
SOURCE Hercules Offshore, Inc.