PROS, DSIC Offshore to Extend Rigs Option

PROS, DSIC Offshore to Extend Rigs Option

Prospector Offshore Drilling S.A. announced today that Total E&P UK Limited has acknowledged, by letter, that the PROSPECTOR 1 shipyard delivery date will be delayed (reference to the announcement made on 14 February 2013) and has formally communicated that they do not currently intend to exercise their right to terminate the charter contract which was originally announced on 23 July 2012.

The company continues to work closely with Total; jointly preparing for operations in accordance with the current delivery schedule.

Additionally, the Company has reached an agreement with Dalian Shipbuilding Industry Offshore Co., Ltd. (“DSIC Offshore”) to extend the expiry dates on two of its rig construction option agreements that were previously due to expire on 31 March 2013. These rig construction option agreements (“New Option Agreement No. One” and “New Option Agreement No. Two”), which were entered into on 2 April 2011, will now expire on 30 June 2013. The Company’s other outstanding rig construction option agreement with DSIC Offshore (“Option Agreement No. 3”), which was entered into on 19 June 2010, has expired.

Finally, the Company announces that Chief Financial Officer, Steven A. Manz resigned from the Company effective 9 April 2013. Mr. Manz joined the Company as one of the co-founders in 2010.

Robert W. Rose, President and Chief Executive Officer of the Company commented: “I am very pleased with Total’s confirmation of the drilling contract and with our close technical collaboration as we prepare the rig and crews to work on Total’s challenging high pressure and high temperature drilling program. The level of bid and pre-contracting activity is the highest it has been since we started the company, with five active tenders for PROSPECTOR 3 and PROSPECTOR 5. Inspection teams representing four of these opportunities visited the rigs in the past 60 days, with a follow-up visit scheduled this month. We also continue to enjoy strong interest from potential rig purchasers who visited the rigs last month. In closing, I join the board in thanking Mr. Manz for significant contributions to the success of PROS and we wish him well in the future.”


PROSPECTOR, April 8, 2013