Hercules Offshore (HERO) to Acquire Liftboat Titan 2; Enters Short Term Commitment

February 27, 2013 5:00 PM EST
Hercules Offshore, Inc. (Nasdaq: HERO) announces the execution of a definitive agreement to acquire the liftboat Titan 2 from a subsidiary of KS Energy Ltd. The purchase price is $42 million in cash. The Titan 2 is a 280 foot class vessel, constructed in 2008, registered and flagged in Panama, and currently located in Limbe, Cameroon. The Company expects the acquisition to close in early March 2013, subject to completion of certain customary closing conditions.

Hercules Offshore also announced that it has signed a Letter of Intent ("LOI") for a short term commitment to use the Titan 2 at a dayrate of approximately $65,000, before catering and other rebillable items. Subject to the execution of a mutually agreed contract, the Company expects the vessel to commence work shortly after closing of the acquisition. Thereafter, the vessel will be scheduled to enter the shipyard for approximately one month to perform dry-dock maintenance and certain capital upgrades estimated at approximately $5 million. The Company is in discussions on several additional opportunities in the region.

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