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Pacific Drilling Announces Exercise of Option to Construct Ultra-Deepwater Drillship


Pacific Drilling S.A. (NYSE: PACD) announced today that its wholly-owned subsidiary exercised an option to construct its seventh ultra-deepwater drillship with Samsung Heavy Industries.

“We are very pleased to announce the order of our seventh ultra-deepwater drillship,” stated Pacific Drilling CEO Chris Beckett. “The current strength we see in the market for ultra-deepwater rigs well into 2014 led us to act on this opportunity to order a rig with very favorable delivery timing.”

The drillship will have a rated water depth of 12,000 feet, be equipped for 40,000 feet drilling depth, have accommodation for 200 personnel and be equipped to support dual gradient drilling. The total cost, excluding capitalized interest, will be approximately $600 million and delivery is scheduled for May 2014. Financing for the construction of this rig is expected to be provided by a combination of the company's recent bond offering, cash flows from ongoing operations and long-term debt.

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