Hercules Offshore finalized its purchase 20 jackups from Seahawk Drilling on April 27. Seven of the Seahawk rigs are currently working with nearly 500 days of contract backlog. The seven contracted rigs have been renamed as follows: Seahawk 2001 (Hercules 212), Seahawk 2004 (Hercules 213), Seahawk 2007 (Hercules 214), Seahawk 2600 (Hercules 263), Seahawk 2601 (Hercules 264), Seahawk 2602 (Hercules 265) and Seahawk 3000 (Hercules 300). In addition, cold stacked rigs Seahawk 2006 was renamed Hercules 209, the Seahawk 2504 is now the Hercules 256 and the Seahawk 2505 was renamed Hercules 259. For the remaining nine jackups, Seahawk was replaced with Hercules but the rig numbers remained the same.

 

Hercules Offshore has received two new contracts that will keep jackup Hercules 204 working to late July. The rig is preparing to move this week to Ship Shoal Block 151 for a 45-day well with Pisces Energy. Upon completion of that work in mid-June, the rig will go to Ship Shoal Block 112 for a 40-day well with Stone Energy. The rig has been briefly stacked in Eugene Island Block 113 after completing a contract with LLOG Exploration. Also, Chevron has extended contracts on jackups Hercules 120, Hercules 173 ...

Seahawk Drilling has recently secured several new contracts and extensions for its jackup fleet. First, Great GulfCan has signed up to take the Seahawk 2001 for a 90-day plus three, 90-day options program. Operations in the state waters in the High Island area are due to begin this week. The firm portion of the work will keep the rig working to mid-July. Next, PetroQuest Energy has inked a deal to take the Seahawk 2004 for a three-well contract in Ship Shoal Block 72. The 90-day program is scheduled to begin in late June or early July after the current contract with Walter O&G is completed. Walter still has around 20days left on its current well in West Cameron Block 29, which will be followed by a 60-day stint in Ship Shoal Block 189. Breton Energy will take jackup Seahawk 2007 for a 60-day well plus an unpriced option in West Cameron Block 71 starting around mid-June. The rig has just over 60 days remaining on its current contract with Castex Energy in Eugene Island Block 224. The rig is now next available around mid-August. Arena Offshore has exercised the first of two priced options on its contract with the Seahawk ...

Block Mexico state oil giant Pemex has confirmed jackup contract awards for three outstanding tenders, confirming two of the awards March 9 and the third on March 10. For the three-rig Tender 503-11, Noble Drilling won both of the 350-IC requirements, consisting of a 272-day term for the Noble Leonard Jones starting March 19 and a 286-day contract for the Noble Bill Jennings (currently in the U.S. Gulf of Mexico) starting March 21. For the 250-IC portion of the tender, Perforadora Mexico won the 286-day program with its Sonora starting March 20. For the two, 2,000 hp platform rig portion of the bid, the joint venture of China Oilfield Services, Ltd. (COSL) and Goimar SA de CV were the sole bidders. The COSL-1 will undertake the 716-day program starting April 1, while the COSL 2 will work under a 274-day term starting April 2. Both rigs are currently working for Pemex.

 

In Tender 504-11, which called for three, 300-IC jackups and one 250-IC jackup, Noble Drilling won two of the four awards. The Noble Gene Rosser was confirmed for one of the 300-ft awards, a 248-day program starting April 28, while the Noble Earl Frederickson won the 250-IC contract, ...

Shipyard work has been completed on jackup Spartan 303 and the rig is now on location in Breton Sound Block 33 to begin its one-well plus options contract with Century Exploration. The firm portion of the contract should keep the rig working for around 90 days to the second-half of May. Jackup Spartan 151 had been on the Breton Sound location, but was moved to the Gulf Copper shipyard in Galveston when Spartan was awarded a two-year contract by Escopeta O&G for work off Alaska with the rig. Upgrades are continuing and the rig is expected to depart the U.S. Gulf around mid-March.

 

Hercules Offshore has received contracts for two previously idle jackups and secured an extension for another. First, Stone Energy will pick up the Hercules 201 for a 10-day P&A, with work scheduled to begin later this week. The rig had been hot stacked in West Cameron Block 38 since mid-December. Hall-Houston has taken the previously idle Hercules 251 for a 40-day contract in Eugene Island Block 266. The contract began over the weekend and will keep the rig busy through March. It had been stacked in West Cameron Block 38 for the past two weeks. Finally, ...

Hercules Offshore, Inc. announced it has entered into an asset purchase agreement with Seahawk Drilling, Inc. to purchase Seahawk’s 20 jackups and related assets. Hercules will issue about 22.3 million shares of Hercules common stock, based on a price of $3.36 as of January 27, 2011, plus $25 million cash for a total value of around $100 million. The sale will be implemented in connection with a Chapter 11 bankruptcy filing made by Seahawk on February 11, and the bankruptcy court must approve the asset sale. Closing is expected to occur in the second quarter. The cash component could increase to the amount of the closing date balance of Seahawk’s debtor-in-possession credit agreement but will not exceed $45 million. However, should the cash amount increase, the number of Hercules common shares issued will be proportionately reduced. Assumed liabilities by Hercules will be limited to current  accounts payable. Seahawk currently has 7 rigs under contract, 11 cold stacked units, and 2 available rigs—both of which join the cold stacked ranks once the sale is finalized. The transaction will give Hercules 42 jackups in the US Gulf of Mexico, including 15 under contract, 22 cold stacked, and 5 available rigs. Sale and/or ...

Spartan Offshore has moved jackup Spartan 151 to the Gulf Copper shipyard in Galveston where it will undergo winterization and other upgrades in preparation to its mobilization to Alaska. The rig recently secured a two-year contract with Escopeta O&G starting in April. The rig had been working under a six-month contract for Century Exploration and had two wells in Breton Sound 34 remaining when it moved off location. Spartan now reports that jackup Spartan 303 has been signed to complete the Century contract. Work will begin around end-February after ABS inspections and testing on the rig is completed.

 

Further to a report in the January 17 Gulf of Mexico Activity Report, Noble Drilling has moved three additional idle jackups to the US Gulf from Mexico. The Noble Gene Rosser has been cold stacked in South Padre Island Block 1146, joining the previously mobilized Noble Bill Jennings and Noble Lewis Dugger. The Noble Johnnie Hoffman and Noble Earl Frederickson are now at the Keppel AmFELS yard in Brownsville where they will undergo derrick replacement and leg repairs respectively. While Noble will likely receive some work from the recent flurry of short-term Pemex jackup bids (see report in thisissue), whether any ...