This is a three-month contract excluding approximately 50 days of mobilization and demobilization period with the day rate of $440,000. Under the sublet agreement, the rig will mobilize to offshore French Guianato commence drilling operations for Tullow Oil once rig acceptance procedures are completed in the U.S. GoM.

Ensco said the original two-year deal with Cobalt for the 8503 at a day rate of $520,000 would be effective once the rig resumes work in the U.S. GoM.

This contract benefits all parties concerned and Ensco has gained another deepwater customer in a new market. Though Ensco faces immense competition from large-cap peers, we believe that the company is well positioned with an organically-growing asset base (three ultra deepwater rigs under construction). An alternative solution like this highlights Ensco's commitment to being an offshore driller of choice.