Total Confirms Prospector 1 Drilling Contract Despite Delay

Prospector Offshore Drilling S.A.,  a high specification jack-up drilling contractor  announced today that Total E&P UK Limited  has acknowledged, by letter, that the PROSPECTOR 1 rig’s shipyard delivery date will be put off and has formally said that they will not 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,” said Prospector Offshore Drilling in a statement.

Related: UK: Prospector Executes Contract with Total for Drilling Services in North Sea

To remind, the drilling contractor was recently notified by DSIC Offshore that because certain components in the jacking system of the under-construction rigs were not manufactured as per the original specification and will have to be replaced, the Company’s first Rig, PROSPECTOR1, previously  expected to be delivered in the first quarter of 2013, is now scheduled for delivery in the third quarter of  2013.

CFO Resigns

Also, 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.”