Hercules Offshore Announces Agreement to Acquire Liftboat Titan 2
HOUSTON, Feb. 27, 2013
HOUSTON, Feb. 27, 2013 /PRNewswire/ --Hercules Offshore, Inc. (Nasdaq: HERO)
announces the execution of a definitive agreement to acquire the liftboat
Titan 2 from a subsidiary of KS Energy Ltd. The purchase price is $42 million
in cash. The Titan 2 is a 280 foot class vessel, constructed in 2008,
registered and flagged in Panama, and currently located in Limbe, Cameroon.
The Company expects the acquisition to close in early March 2013, subject to
completion of certain customary closing conditions.
Hercules Offshore also announced that it has signed a Letter of Intent ("LOI")
for a short term commitment to use the Titan 2 at a dayrate of approximately
$65,000, before catering and other rebillable items. Subject to the execution
of a mutually agreed contract, the Company expects the vessel to commence work
shortly after closing of the acquisition. Thereafter, the vessel will be
scheduled to enter the shipyard for approximatelyone month to perform
dry-dock maintenance and certain capital upgrades estimated at approximately
$5 million. The Companyis in discussions on several additional opportunities
in the region.
John T. Rynd, Chief Executive Officer and President of Hercules Offshore
stated, "Demand for liftboats in West Africa has been very strong in recent
years, particularly in the higher-end market segment that requires larger
vessel classes. Our acquisition of the Titan 2 expands our opportunity set in
the region to meet the most attractive segment of this market, and is part of
our ongoing effort to renew our fleet. The Titan 2 is one of the premier
liftboats in the region, with a solid record of operations for some of the
most prominent customers in West Africa."
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.
Contact: Son P. Vann, CFA, Vice President Investor Relations and Planning,
Hercules Offshore, Inc., +1-713-350-8508
Press spacebar to pause and continue. Press esc to stop.