HERCULES OFFSHORE, INC. - FORM 8-K - EX-99.1 - October 21, 2010

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8-K - FORM 8-K - HERCULES OFFSHORE, INC.h77062e8vk.htm
Exhibit 99.1
(HERCULES OFFSHORE LOGO)
Hercules Offshore
Monthly Rig Fleet Status Report
as of
October 21, 2010
                                       
                      Contract (2)   Est.
Duration (3)
      Rig Name   Rig Type   Location   Customer / Status (1)   Dayrate ($000s)   Days   Date   Comments
Domestic Offshore  
                                     
 
1     Hercules 120   120’ — MC, TD   GOM   Chevron   32-34     71     12/31/10  
Inspections for 14 days in October at zero dayrate
2     Hercules 150   150’ — ILC, TD   GOM   Phoenix   32-35     22     11/12/10  
 
                  LLOG   33-35     21     12/03/10  
 
                  Apache   33-35     21     12/24/10  
 
3     Hercules 173   173’ — MC, TD   GOM   Chevron   32-34     71     12/31/10  
 
4     Hercules 200   200’ — MC, TD   GOM   Apache   33-35     21     11/11/10  
 
5     Hercules 201   200’ — MC, TD   GOM       Ready Stacked               10/27/10  
 
                  Hall Houston   31-33     25     11/21/10  
 
6     Hercules 202   200’ — MC, TD   GOM   W&T Offshore   31-33     11     11/01/10  
 
7     Hercules 204   200’ — MC, TD   GOM   Energy XXI   36-38     30     11/20/10  
 
8     Hercules 205   200’ — MC, TD   GOM   MCX   34-36     27     11/17/10  
Inspections for 7 days in November at zero dayrate
                  Tana   34-36     28     12/15/10  
 
9     Hercules 251   250’ — MS, TD   GOM   ADTI/Phoenix   32-34     34     11/24/10  
Contract commenced October 14
10     Hercules 253   250’ — MS, TD   GOM   ADTI/Contango   30-32     27     11/17/10  
Contract commenced September 23
11     Hercules 350   350’ — ILC, TD   GOM   Chevron   69-71     71     12/31/10  
 
                                     
 
                      Average     44     days  
 
12     Hercules 75     Submersible, TD   GOM       Cold Stacked 01/09                  
 
13     Hercules 77     Submersible, TD   GOM       Cold Stacked 01/09                  
 
14     Hercules 78     Submersible, TD   GOM       Cold Stacked 01/09                  
 
15     Hercules 85     85’ — ILS, TD   GOM       Cold Stacked 01/09                  
 
16     Hercules 101   100’ — MC, TD   GOM       Cold Stacked 01/09                  
 
17     Hercules 152   150’ — MC, TD   GOM       Cold Stacked 05/09                  
 
18     Hercules 153   150’ — MC, TD   GOM       Cold Stacked 01/09                  
 
19     Hercules 203   200’ — MC, TD   GOM       Cold Stacked 06/09                  
 
20     Hercules 206   200’ — MC, TD   GOM       Cold Stacked 12/09                  
 
21     Hercules 207   200’ — MC, TD   GOM       Cold Stacked 01/09                  
 
22     Hercules 211   200’ — MC Workover   GOM       Cold Stacked 01/09                  
 
23     Hercules 250   250’ — MS, TD   GOM       Cold Stacked 12/09                  
 
24     Hercules 252   250’ — MS, TD   GOM       Cold Stacked 05/09                  
 
25     Hercules 257   250’ — MS, TD   GOM       Cold Stacked 07/10                  
 

Page 1 of 4

 

(HERCULES OFFSHORE LOGO)
Hercules Offshore
Monthly Rig Fleet Status Report
as of
October 21, 2010
                                       
                      Contract (2)   Est.
Duration (3)		    
      Rig Name   Rig Type   Location   Customer / Status (1)   Dayrate ($000s)   Days   Date   Comments
International Offshore
                                     
 
1     Hercules 170   170' — ILC, TD   Bahrain       Warm Stacked  
 
                
2     Hercules 156   150' — ILC, TD   Gabon       En Route                  
En route to Bahrain from Gabon for warm stacking
3     Hercules 185   150' — ILC, TD   Gabon   Angola Drilling Company Ltd   149-151     n/a     01/07/11  
Remains on standby dayrate in the $145-150K range. Contract with ADC currently does not meet our revenue recognition criteria due to uncertainty surrounding collectability. LOI signed with Cabinda Gulf Oil Company LTD. (CABGOC), a wholly-owned subsidiary of Chevron, in Angola at dayrate of $59-61K expected to commence by January 1, 2011.
4     Platform 3   Platform, TD   Mexico   PEMEX       54-56     182     04/21/11  
 
5     Hercules 258   250' — MS, TD   India   ONGC   109-111     226     06/04/11  
Underwater inspections for 7 days rescheduled to October at zero dayrate
6     Hercules 260   250' — ILC, TD   India   ONGC   142-144     160     03/30/11  
 
7     Hercules 208   200' — MC, TD   Malaysia   Murphy   109-111     309     08/26/11  
 
8     Hercules 261   250' — ILC, TD   Saudi Arabia   Saudi Aramco   136-138     344     09/30/11  
 
9     Hercules 262   250' — ILC, TD   Saudi Arabia   Saudi Aramco   127-129     344     09/30/11  
 
                      Average     174     days  
 

Page 2 of 4

 

(HERCULES OFFSHORE LOGO)
Hercules Offshore
Monthly Rig Fleet Status Report
as of
October 21, 2010
                                     
                    Contract (2)   Est. Duration (3)    
    Rig Name   Rig Type   Location   Customer / Status (1)   Dayrate ($000s)   Days   Date   Comments
US Inland Barges                            
 
                                    
1
  Hercules 17   Posted — 3000 hp, TD   US Inland Gulf Coast   Energy Partners Ltd.   20-22     26     11/16/10    
2
  Hercules 41   Posted — 3000 hp, TD   US Inland Gulf Coast   Gulf South Operators   17-19     18     11/08/10    
3
  Hercules 49   Posted — 3000 hp, TD   US Inland Gulf Coast   McMoran   25-27     72     01/01/11    
 
                  Average     39     days    
4
  Hercules 01   Conv — 2000 hp   US Inland Gulf Coast       Cold Stacked 10/08                    
5
  Hercules 09   Posted — 2000 hp, TD   US Inland Gulf Coast       Cold Stacked 05/09                    
6
  Hercules 11   Conv — 3000 hp, TD   US Inland Gulf Coast       Cold Stacked 02/09                    
7
  Hercules 15   Conv — 2000 hp   US Inland Gulf Coast       Cold Stacked 12/08                    
8
  Hercules 19   Conv — 1000 hp   US Inland Gulf Coast       Cold Stacked 01/09                    
9
  Hercules 27   Posted — 3000 hp, TD   US Inland Gulf Coast       Cold Stacked 01/09                    
10
  Hercules 28   Conv — 3000 hp   US Inland Gulf Coast       Cold Stacked 05/08                    
11
  Hercules 29   Conv — 3000 hp, TD   US Inland Gulf Coast       Cold Stacked 03/09                    
12
  Hercules 46   Posted — 3000 hp, TD   US Inland Gulf Coast       Cold Stacked 01/09                    
13
  Hercules 48   Posted — 3000 hp, TD   US Inland Gulf Coast       Cold Stacked 03/09                    
14
  Hercules 52   Posted — 2000 hp, TD   US Inland Gulf Coast       Cold Stacked 01/09                    
15
  Hercules 55   Posted — 2000 hp, TD   US Inland Gulf Coast       Cold Stacked 01/09                    
16
  Hercules 57   Posted — 3000 hp, TD   US Inland Gulf Coast       Cold Stacked 03/09                    
17
  Hercules 64   Posted — 3000 hp, TD   US Inland Gulf Coast       Cold Stacked 03/09                    
 
(1)   Rigs with a Customer named are under contract while rigs described as “Ready Stacked” are not under contract but generally are ready for service. Rigs described as “Warm Stacked” may have a reduced number of crew, but only require a full crew to be ready for service. Rigs described as “Cold Stacked” are not actively marketed, normally require the hiring of an entire crew and require a maintenance review and refurbishment before they can function as a drilling rig. Rigs described as “Shipyard” are undergoing maintenance, repairs, or upgrades and may or may not be actively marketed depending on the length of stay in the shipyard.
 
(2)   Contract dayrates shown in the table above are full contract operating dayrates, although the average dayrate over the term of the contract will be lower and could be substantially lower. Lower dayrates typically apply when the rig is under contract but not fully operating, including periods when the rig is moving, waiting on weather, on standby, down for repairs or maintenance or during other operational delays or events of force majeure. In certain cases under our Inland Barge contracts dayrates include revenue for other vessels and services provided by Delta Towing. The dayrates do not include lump sum amounts reimbursable from the client, bonuses that are considered revenue under generally accepted accounting principles, or revenue already included in other Hercules business segments.
 
(3)   Estimated contract duration is an estimate based on current belief by our customer as to the remaining days to complete the project.

Page 3 of 4

 

(HERCULES OFFSHORE LOGO)
Hercules Offshore
Liftboat Fleet Status Report
for the month ended
September 30, 2010
                                               
Leg Length/             Actively     Revenue Per                  
Liftboat Class     Total Number     Marketed     Day Per     Operating            
(Feet)     of Liftboats     Liftboats(1)     Liftboat(2)     Days     Utilization(3)     Comments
 
                                              
Gulf of Mexico
                                              
230
      2       2     $ 23,703       60       100 %    
170-215
      4       4       13,216       120       100 %    
140-150
      6       6       8,512       143       79 %   One vessel in drydock in September and four vessels in drydock in October
120-130
      14       13       6,368       331       85 %   Three vessels in drydock in September and one vessel in drydock in October
105
      15       13       4,954       381       98 %   One vessel in drydock in October
 
                                   
Sub-total/Average
      41       38     $ 7,943       1,035       91 %    
 
                                              
International
                                              
230-260
      2       2     $ 46,980       55       92 %    
170-215
      7       7       33,618       116       55 %   Two vessels in drydock in September and October
140-150
      4       4       15,610       83       69 %   Two vessels in drydock in September one vessel in drydock in October
120-130
      7       7       12,060       158       75 %    
105
      4       3       -       -       0 %    
 
                                   
Sub-total/Average
      24       23     $ 23,507       412       60 %    
 
                                              
 
                                   
Total/Average
      65       61     $ 12,374       1,447       79 %    
 
(1)   Actively marketed liftboats excludes three GOM cold-stacked liftboats and one Nigeria cold-stacked liftboat.
 
(2)   Includes reimbursables.
 
(3)   Utilization is defined as the total number of operating days in the period as a percentage of the total number of calendar days in the period our liftboats were actively marketed.
The information and statements made in the Fleet Status Report that are not historical facts are 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. These forward-looking statements include statements concerning estimated contract expiration dates, dayrates, estimated dates for completion of repairs and upgrades and commencement dates of new contracts, as well as information that may be affected by the regulatory uncertainty in the Gulf of Mexico. Such statements are subject to a number of risks, uncertainties and assumptions, including without limitation, early termination by the customer pursuant to the contract or otherwise, cancellation or completion of certain contracts earlier than expected, our ability to renew or extend our long-term international contracts, or enter into new contracts, at current dayrates when such contracts expire, operational difficulties, shipyard and other delays, government and regulatory actions and other factors described in the Company’s annual report on Form 10-K and its 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 www.sec.gov or the Company’s website at www.herculesoffshore.com. The Company 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.

Page 4 of 4

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