From Earlier: Vantage Drilling Company Announces Agreement to Purchase Dragonquest for $164M

Vantage Drilling Company (NYSE:

) yesterday announced that it has signed a definitive agreement to acquire the rights and obligations under the construction contract for the ultra-deepwater drillship known as Dragonquest from Valencia Drilling Corporation, a Marshall Islands corporation for a purchase price of approximately $164 million. Upon closing of this transaction the Company will be responsible for funding the remaining construction-related payments for the Dragonquest. In addition, Vantage has agreed to pay up to $5 million of Valencia's costs and expenses at closing. The closing of the acquisition is subject to specified closing conditions. The Dragonquest was constructed at Daewoo Shipbuilding & Marine Engineering Co., Ltd. ("DSME") in Okpo, Korea. Construction has been completed on the vessel, and upon delivery of the Dragonquest and the closing of the transaction, Vantage will be required to make expenditures for the final construction payment, project costs, equipment, and spares, and the total delivered, in-service cost of the project, including the purchase price under the agreement with Valencia, totaling approximately $800 million. The closing of the transaction and the delivery of the Dragonquest are currently expected to take place in April 2012.