Atwood Oceanics, Inc. (ATW) and its international operating subsidiary, Atwood Oceanics Pacific Limited (and related subsidiaries), engage in offshore drilling of exploratory and developmental oil and gas wells, and related support services. The company, based in Houston, Texas, has conducted drilling operations in most of the major offshore exploration areas of the world, including the Mediterranean, Middle East, Asia, Pacific Islands, Africa, the Americas and Australia. Atwood’s fleet consists of eight active, wholly-owned drilling units, which include four semi-submersibles, two cantilever jack-ups, one semi-submersible self-erecting tender-assist rig, and one submersible.

The company announced last week that the ATWOOD AURORA, a LeTourneau Super 116E Jack-Up currently being constructed in Brownsville, Texas by Atwood’s subsidiary, Atwood Oceanics Pacific Limited, has been awarded a contract by RWE DeaNile GmbH for work offshore Egypt. This contract is for a firm period of two years at an operating rate per day of $165,000. The contract includes a cost escalation clause and provides for two (2) separate options to extend the term to three years, and also provides for a mobilization payment of $4.5M.

Atwood also announced that the ATWOOD SOUTHERN CROSS has received a commitment from an operator in West Africa for the drilling of one well. The contract is subject to the operator’s administrative approval process. The contract is presently expected to commence immediately upon the rig completing its current contract offshore Italy (projected for the end of August 2008), and provides a per-day rate of $262,500 during mobilization from its current location to West Africa and $352,000 during drilling operation.

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