Updates Fourth Quarter 2010 Revenue Outlook
LONDON--(BUSINESS WIRE)--
Ensco plc (NYSE: ESV) announced today that a subsidiary of the Company
has reached an agreement with Nexen Petroleum U.S.A. Inc., a subsidiary
of Nexen Inc. (NYSE & TSE : NXY), regarding the drilling contract for
ENSCO 8502, an ultra-deepwater semisubmersible drilling rig in the U.S.
Gulf of Mexico.
Under the agreement, a special rate applies from 13 August 2010 until
the time the rig begins mobilizing to the first drilling location
designated by Nexen. The two-year term under the original ENSCO 8502
drilling contract with Nexen will not be reduced by periods during which
the special rate is effective.
The approximately $485,000 day rate applicable under the original
drilling contract will apply once ENSCO 8502 begins mobilizing to
Nexen's first drilling location.
As noted in the Company's third quarter 2010 earnings release, the
Company did not recognize revenues related to ENSCO 8502 in the third
quarter. Based on the agreement announced today, Ensco anticipates that
revenues will be recognized for ENSCO 8502 in the fourth quarter of
2010, including revenues for the period 13 August to 30 September 2010.
The Company now believes fourth quarter 2010 revenues will be
approximately $375 million to $400 million, compared to the original
outlook of $345 million to $400 million provided on the third quarter
2010 earnings conference call.
Ensco plc (NYSE: ESV) brings energy to the world as a global provider of
offshore drilling services to the petroleum industry. With a fleet of
ultra-deepwater semisubmersible and premium jackup drilling rigs, Ensco
serves customers with high-quality equipment, a well-trained workforce
and a strong record of safety and reliability. To learn more about
Ensco, please visit our website at www.enscoplc.com.
Ensco plc is an English limited company (England No. 7023598) with its
registered office and global headquarters located at 6 Chesterfield
Gardens, London, W1J 5BQ.
Statements contained in this press release that state the Company's
or management's intentions, plans, hopes, beliefs, expectations,
anticipations, projections, confidence, schedules, or predictions of the
future are forward-looking statements made pursuant to the Private
Securities Litigation Reform Act of 1995.
Forward-looking statements include words or phrases such as
"anticipate," "believe," "estimate," "expect," "intend," "plan,"
"project," "could," "may," "might," "should," "will" and words and
phrases of similar import. The forward-looking statements include, but
are not limited to, statements about the ENSCO 8502 agreement, the
payments to be received thereunder and the related accounting treatment,
and the revised fourth quarter 2010 outlook.
Forward-looking statements are made pursuant to safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Numerous factors could cause actual results to differ materially from
those in the forward-looking statements, including: (i) the impact of
the BP Macondo well incident in the U.S. Gulf of Mexico upon future
deepwater and other offshore drilling operations in general, and as
respects current and future actual or de facto deepwater drilling permit
and operations moratoria/suspensions, new and future regulatory,
legislative or permitting requirements (including requirements
related to equipment and operations), future lease sales and other
governmental activities that may impact deepwater and other offshore
operations in the U.S. Gulf of Mexico in particular, (ii) renegotiation,
nullification, cancellation or breach of contracts or agreements with
customers or other parties, (iii) the impact of current and future
government laws and regulation affecting the oil and gas industry in
general and our operations in particular, (iv) governmental action and
political and economic uncertainties, which may create a force majeure
situation, and (v) other risks as described from time to time as Risk
Factors in the Company's SEC Filings.
Copies of such SEC filings may be obtained at no charge by contacting
our Investor Relations Department at 214-397-3045 or by referring to our
website at www.enscoplc.com.
All information in this press release is as of today. The Company
undertakes no duty to update any forward-looking statement, to conform
the statement to actual results, or reflect changes in the Company's
expectations.
Source: Ensco plc