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Hercules Offshore Announces Agreement to Acquire Jackup Rig Ben Avon and Letter of Agreement for a Three-Year Drilling Contract

   Hercules Offshore Announces Agreement to Acquire Jackup Rig Ben Avon and
            Letter of Agreement for a Three-Year Drilling Contract

PR Newswire

HOUSTON, Feb. 21, 2013

HOUSTON, Feb. 21, 2013 /PRNewswire/ -- Hercules Offshore, Inc. (Nasdaq: HERO)
announced today the execution ofan agreement to acquire the offshore drilling
rig Ben Avon from a subsidiary of KCA Deutag. The purchase price is $55
million in cash. The Ben Avon is a LeTourneau Class 82 SD-C self-elevating
drilling rig registered and flagged in Panama. Subject tocompletion of
certainclosing conditions, the Company expects the acquisition to close
bylate-March 2013.

Hercules Offshore also announced that it has signed a Letter of Agreement
("LOA") for a three-year rig commitment with Cabinda Gulf Oil Company Limited
("CABGOC") for use of the Ben Avon. The Company expects to generate total
revenue of approximately $119 million over this three-year period under the
contract. Subject to the execution of a mutually agreed drilling contract,
the Company expects the rig to commence work as early as May 2013.

John T. Rynd, Chief Executive Officer and President of Hercules Offshore
stated, "We are very pleased to be able to acquire the Ben Avon and execute an
LOA with CABGOC. With this transaction, we continue to opportunistically
expand our international presence and scale, add significant long term backlog
and cash flow, and reaffirm our commitment to CABGOC, a key global client, at
economics that are beneficial for all parties. The LOA for the Ben Avon
replaces our prior contract with CABGOC for the Hercules 185, at a substantial
improvement in dayrate and provides for a new full three year term. The Ben
Avon is a well-maintained rig that recently completed an extensive five year
special survey. Given the good condition of the rig, and its close proximity
to the drilling location, we expect to spend only minimal additional capital
to get it on contract."

Additional Information

Headquartered in Houston, Hercules Offshore, Inc. operates a fleet of 37
jackup rigs, 13 barge rigs and 63 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. Hercules Offshore
currently holds 32.1% of share capital in Discovery Offshore S.A., a pure
play, ultra-high specification jackup rig company. For more information,
please visit our website at http://www.herculesoffshore.com.

The news release contains 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. Such statements are subject to a number of risks,
uncertainties and assumptions, including the factors described in Hercules
Offshore's 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 http://www.sec.gov or the Company's website at
http://www.herculesoffshore.com. Hercules Offshore 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.

SOURCE Hercules Offshore, Inc.

Website: http://www.herculesoffshore.com
Contact: Son P. Vann, CFA, Vice President Investor Relations and Planning,
Hercules Offshore, Inc., 713-350-8508
 
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