Diamond Offshore announces agreement to sell the Ocean Columbia

Wednesday, March 21, 2012
  • The transaction is expected to close in May 2012, subject to customary closing conditions.

Diamond Offshore Drilling, Inc. (NYSE:DO) announced the execution of a definitive agreement to sell its subsidiary's jack-up drilling rig, Ocean Columbia, to a subsidiary of Hercules Offshore, Inc. (NASDAQ: HERO) for a sale price of $40 million in cash. The transaction is expected to close in May 2012, subject to customary closing conditions.

After the transaction closes, employees currently working on the rig will have opportunities to remain with Diamond Offshore, where they may be reassigned within the fleet. Additionally, our current newbuild projects, three ultra-deepwater drillships and a deepwater semisubmersible rig, will create significant employment opportunities as the rigs are delivered from the shipyards in 2013 and 2014.

'Hercules approached us with an offer to acquire the Ocean Columbia, and we found the terms to be compelling,' said Larry Dickerson, President and Chief Executive Officer of Diamond Offshore. 'We are principally a floater company, and this transaction will further augment our funds for potential investments in deepwater and ultra-deepwater assets.'

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

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