Hercules Offshore, Inc. reported a loss from continuing operations of $21.5 million, or $0.16 per diluted share, on revenue of $162.8 million for the fourth quarter 2011, compared with a loss from continuing operations of $82.5 million, or $0.72 per diluted share, on revenue of $164.8 million for the fourth quarter 2010. As outlined in the Reconciliation of GAAP to Non-GAAP Financial Measures, fourth quarter 2010 results include a non-cash impairment charge on property and equipment of $122.7 million. On an after tax basis, this adjustment approximated $79.8 million, or $0.70 per diluted share.

For the twelve month period ended December 31, 2011, the Company reported a loss from continuing operations of $66.5 million, or $0.51 per diluted share, on revenue of $655.4 million, versus a loss from continuing operations of $132.1 million, or $1.15 per diluted share, on revenue of $624.8 million for the twelve month period ended December 31, 2010. When adjusting for the non-cash impairment charge on property and equipment, the Company reported a loss from continuing operations of $52.3 million or $0.46 per diluted share for the twelve month period ended December 31, 2010.

John T. Rynd, Chief Executive Officer and President of Hercules Offshore stated, "Several strategic objectives were accomplished in 2011 that have better positioned our Company to capitalize on the growth that we expect in our industry in 2012 and beyond. Notably, our acquisition of the Seahawk assets further strengthens our position in the U.S. Gulf of Mexico at a time when activity levels are experiencing a healthy rebound, while our formation and investment in Discovery Offshore is the initial step in our efforts to renew our drilling fleet and significantly high grade our marketed asset base.

"Our fourth quarter results were impacted by downtime on several of our international rigs as they completed projects and prepare for their new contract work. We expect this contract preparation work will continue into the second quarter 2012, before the rigs recommence operations on their new long term contracts in the second half of 2012.

"In our Domestic Offshore segment, we continue to see solid demand for jackup rigs in the U.S. Gulf of Mexico in 2012, driven by the shift to liquids-rich drilling by operators and robust crude oil prices. Industry capacity is at near full utilization, and our domestic jackup fleet is largely contracted through mid-year 2012. Given the tightness in our rig availability, coupled with the increase in leading edge dayrates, the economics of rig reactivations are becoming increasingly attractive."

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