Hercules to purchase three drilling rigs

Hercules Offshore, Inc. has entered into a definitive agreement with Transocean Inc. to purchase three jackup drilling rigs and related equipment for $320 million. The rig package includes the Adriatic III, a 350′ Marathon LeTourneau 116C, and the High Island I and the High Island VIII, both 250′ Marathon LeTourneau 82-SDCs.

All three rigs are currently located in the U.S. Gulf of Mexico. However, Hercules Offshore is currently negotiating long-term international contracts for the High Island I and High Island VIII, and will begin marketing the third rig, Adriatic III, in a number of international markets in the near future.

The boards of directors of Hercules Offshore and Transocean Inc. have both approved the transaction. Closing of the transaction is subject to regulatory approvals and other customary conditions. The Company plans to fund the acquisition with cash on hand and borrowings under its revolving credit facility.