Hercules Offshore Inc said it will purchase a rig from a unit of Diamond Offshore Drilling Inc for $40 million in cash to execute a three-year drilling contract with world's largest oil producer Saudi Aramco.Hercules expects $160 million in revenue from the Saudi Aramco contract and sees a total utilization rate of 98 percent for the rig over the three-year period.Saudi Aramco has the option to extend the term of contract by another year, Hercules Offshore said in a statement.The Gulf of Mexico drilling contractor will invest about $45 million to repair, upgrade and mobilize the rig, which is expected to commence drilling in November.
Diamond Offshore Drilling, Inc. (Diamond Offshore) is a global offshore oil and gas drilling contractor. Shares of DO fell by 1.43% or $-1.03/share to $70.93. In the past year, the shares have traded as low as $51.16 and as high as $81.19. On average, 1569880 shares of DO exchange hands on a given day and today's volume is recorded at 1241087.
Hercules Offshore, Inc. (Hercules Offshore) provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry worldwide. Shares of HERO traded higher by 0.79% or $0.04/share to $5.08. In the past year, the shares have traded as low as $2.25 and as high as $6.99. On average, 3813650 shares of HERO exchange hands on a given day and today's volume is recorded at 2502026.
Source
