HOUSTON, Aug. 13, 2007 (PRIME NEWSWIRE) -- Pride International, Inc. (NYSE:PDE) today announced that it has signed a memorandum of agreement to sell its fleet of three self-erecting, tender-assist rigs to Ferncliff TIH AS of Norway for $213 million in cash. The sale is expected to close by January 2008, subject to the novation of drilling contracts on each unit and other customary closing conditions. Proceeds from the sale are expected to be utilized for general corporate and strategic purposes, including potential funding for the construction of the company's two ultra-deepwater drillships and other future growth opportunities.
The three tender-assist units, the Al Baraka I, Alligator and Barracuda, are currently under contract to major international oil and gas companies and operating offshore West Africa. The sale of the units is consistent with Pride's stated strategic direction to focus its offshore drilling operations in deepwater and other high specification assets.
Pride International, Inc., headquartered in Houston, Texas, is one of the world's largest drilling contractors. The company provides onshore and offshore drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assist, barge and platform rigs, five managed deepwater rigs and 214 land rigs. The company has two additional ultra-deepwater drillships under construction with expected deliveries in 2010. In addition, the company has reached a definitive agreement to sell its Latin America-based land drilling and workover rigs and two lake drilling barges with an expected closing by the end of the third quarter of 2007.
Statements regarding the proposed sale of the tender-assist rigs and Latin America land-based operations, expected proceeds from the sale, expected timing of closing, as well as any other statements that are not historical facts, are forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions and other factors disclosed from time to time in the company's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements.