Hercules Offshore Provides Update To Incident On Jackup Drilling Rig Hercules 265, Says Extent of Damage Unknown

Hercules Offshore HERO today provided updates to the incident aboard jackup drilling rig Hercules 265, a 250' mat-supported cantilevered unit, operating for Walter Oil & Gas Corporation in the U.S. Gulf of Mexico OCS lease block South Timbalier 220. Late yesterday evening, the natural gas flowing from the well ignited which spread to the rig. The extent of the damage to the rig is currently unknown. The Company is currently working with its customer, Walter Oil & Gas, and regulatory authorities to determine the cause of the incident, but our immediate focus is on stopping the flow of natural gas from the well. All parties involved are working with third-party experts to develop a plan to regain control over the natural gas well, which could include the drilling of a relief well. The Company is awaiting daylight to assess any potential environmental incident. As previously reported, all 44 personnel aboard the jackup rig were safely evacuated during the afternoon of July 23rd. There have been no injuries sustained as a result of this incident. About Hercules Offshore Headquartered in Houston, Hercules Offshore, Inc. operates a fleet of 40 jackup rigs, including two Keppel FELS Super A high-specification, harsh-environment jackup rigs, and 24 liftboats. The Company offers a range of services to oil and gas producers to meet their needs during drilling, well service, platform inspection, maintenance, and decommissioning operations in several key shallow water provinces around the world. For more information, please visit our website at http://www.herculesoffshore.com.