Prospector Executes Contract with Total for Drilling Services in North Sea

Prospector Offshore Drilling S.A. announced that further to the announcement on 25 April 2012, one of the Company’s subsidiaries has executed a contract (the “Contract”) with Total E&P UK Limited and Elf Exploration UK Limited (“Total”) for offshore drilling services in the North Sea with its first jack-­‐up rig, “PROSPECTOR 1”.

The Contract has an initial term of 690 days. Total has the right to extend the initial Contract term for additional well testing and has an option to drill two additional wells.

If Total exercises its right to do additional well testing on the initial wells and its option to drill the two optional wells, the Contract term could be extended up to one to two years.

The total aggregate revenue for the initial 690 day Contract is approximately USD 135 million. The drilling program is expected to commence in the second quarter of 2013, following the delivery of PROSPECTOR 1 from the shipyard in Dalian, China, which is expected to occur in January 2013.

Robert W. Rose, the Company President and CEO, commented: “This execution of this Contract with Total is the next step in the development of the Company. We look forward to the delivery of PROSPECTOR 1 and providing Total with advanced and safe operations. The Company is in ongoing discussions regarding opportunities for our other rigs under construction.”

[mappress]
Offshore Nieuws Staff , July 24, 2012