Pacific Drilling reported that a letter of Award has been converted to a definitive contract for the Pacific Scirocco following the necessary approvals from authorities.

The minimum duration of the contract is for an initial one-year term, with contract commencement expected during the third quarter of 2011.

The contract provides for options, to be exercised at the client's discretion, which could result in up to four additional years of contract term with an escalating dayrate dependent upon the option timing and term elected.

Estimated maximum contract revenues related to the initial one-year term are expected to be approximately $200 million, excluding client requested modifications and miscellaneous adjustments.

The Pacific Scirocco is capable of operating in water depths of up to 12,000 feet and drilling wells 40,000 feet deep.

Tags: Pacific Drilling Ltd.