Atwood Oceanics Announces Exercise of Option to Construct Jack-Up Drilling Unit

ATWOOD OCEANICS, INC. ATW announced today that on January 14, 2011, Atwood Oceanics Pacific Limited, a wholly-owned subsidiary of Atwood Oceanics, Inc., exercised the first of three options and executed a turnkey construction agreement to construct a third Pacific Class 400 jack-up drilling unit with PPL Shipyard PTE LTD. As with the October 5, 2010 announcement, this rig will have a rated water depth of 400 feet, accommodations for 150 personnel and significant offline handling features. The total cost, including project management, drilling and handling tools, spares and capitalized interest, will be approximately $190 million and is scheduled for delivery on June 30, 2013. Financing for the construction of this rig is expected to be provided from a combination of ongoing cash flows of AOPL and debt, as necessary, from AOPL's current senior credit facilities. The Company will consider whether any additional debt may be necessary in connection with fleet expansion.