ATWOOD OCEANICS TO INITIATE QUARTERLY CASH DIVIDEND

FOR IMMEDIATE RELEASE

HOUSTON, September 15, 2014 -- Atwood Oceanics, Inc.  ATW announced today that it is initiating a quarterly cash dividend for the company's first quarter of fiscal 2015, which ends December 31, 2014.  The board of directors has declared the first quarterly cash dividend of $0.25 per share of common stock, payable on January 13, 2015 to shareholders of record as of 5:00 p.m., Eastern Standard Time, on January 6, 2015.

Rob Saltiel, Atwood Oceanics President and CEO, commented, "We are pleased to initiate a dividend that will provide a sustainable return of cash to our shareholders.  Given Atwood's contract backlog and anticipated revenue and earnings growth, we expect to grow the dividend distribution by at least 10% each year.  We will continue to seek profitable growth opportunities as our primary means of value creation, but we recognize the advantages of a diversified source of returns for our shareholders."

Atwood Oceanics, Inc. is a leading offshore drilling contractor engaged in the drilling and completion of exploratory and developmental wells for the global oil and gas industry. The company currently owns 13 mobile offshore drilling units and is constructing two ultra-deepwater drillships. The company was founded in 1968 and is headquartered in Houston, Texas.  Atwood Oceanics, Inc. common stock is traded on the New York Stock Exchange under the symbol "ATW."  For a full list of the official Social Media pages for Atwood Oceanics, Inc. please visit our Investor Relations site at: http://ir.atwd.com/GenPage.aspx?IID=4010374&GKP=210376 .

Contact: Mark L. Mey
(281) 749-7902

Forward Looking Statements

Statements contained in this press release with respect to the future, including the company's expectations as to future dividend payments and growth, are forward-looking statements. These statements reflect management's reasonable judgment with respect to future events. Forward-looking statements are subject to numerous risks, uncertainties and assumptions and actual results could differ materially from those anticipated as a result of various factors including: uncertainties related to the level of activity in offshore oil and gas exploration and development; oil and gas prices; competition and market conditions in the contract drilling industry; the risks inherent in the construction of a rig; delays in the commencement of operations of a rig following delivery; our ability to enter into and the terms of future contracts; possible cancelation or suspension of drilling contracts; the availability of qualified personnel; labor relations; operating hazards and risks; terrorism and political and other uncertainties inherent in foreign operations (including risk of war, civil disturbances, seizure or damage to equipment and exchange and currency fluctuations); the impact of governmental and industry laws and regulations; and environmental matters. These factors and others are described and discussed in our most recently filed annual report on Form 10-K, in our Forms 10-Q for subsequent periods and in our other filings with the Securities and Exchange Commission which are available on the SEC's website at www.sec.gov. Each forward looking statement speaks only as of the date of the particular statement and we undertake no duty to update the content of this press release or any forward-looking statement contained herein to conform the statement to actual results or to reflect changes in our expectations.