Vantage Energy Services, Inc. has exercised its previously declared option, through Offshore Group Investments Limited OGIL), to acquire one ultra-deepwater drillship (the Platinum Explorerand has obtained an option to acquire a second ultra-deepwater drillship (the Titanium ExplorerThe proposed acquisition of OGIL is, among other customary closing conditions, subject to a stockholder vote by the stockholders of Vantage. Additional information may be found in Vantage's proxy statement and annual report on Form 10-K.

"We are extremely pleased to exercise the option on the Platinum Explorer and to obtain a firm option on the sister ship, Titanium Explorer," Paul Bragg, Chief Executive Officer of Vantage, stated. "We are deeply committed to building Vantage into a leading offshore drilling company with the highest level of capabilities. Our fleet will be comprised of all new, high-specification assets -- and clearly, deepwater will be our strongest focus. Given the current status of our outstanding bids and proposals for the Platinum Explorer, as well as numerous other customer inquiries, we believe that exercising the purchase option at this time is in our best interest. We found it extremely attractive to couple this action with obtaining the additional option to purchase the Titanium Explorer. The addition of the Titanium Explorer option will orient our fleet towards deepwater." Following the completion of the current construction program, assuming approval of the acquisition by stockholders, Vantage will have two ultra-deepwater drillships and four ultra-premium jackup rigs.

"The fourth quarter 2010 scheduled completion date for the Platinum Explorer makes it one of the industry's first available, un-contracted newbuild drillships," Mr. Bragg stated. "This 12,000-foot water depth capable drillship being constructed by DSME in South Korea will be the 'flagship' of the Vantage fleet. We are currently discussing numerous contract opportunities with customers throughout the world for employment of the ship, as well as the jackup rigs. Additionally, we have submitted and are preparing for submission tender bids and other proposals to a variety of possible customers. Previously, we had agreed to purchase an option to acquire the Platinum Explorer in the initial acquisition transaction of OGIL. To facilitate contracting the ship, we have reached agreement with the seller to include the Platinum Explorer in the initial acquisition transaction by Vantage, along with four ultra-premium jackup rigs, currently under construction at PPL in Singapore. At this time, we are also reviewing contract opportunities for the Titanium Explorer."

Tags: Vantage Energy Services