ATW Atwood Oceanics, Inc. (delisted)

Atwood Announces Contract Awarded to the ATWOOD HUNTER HOUSTON, Feb. 7 /PRNewswire-FirstCall/ -- Atwood Oceanics, Inc. (NYSE:ATW) (Houston based International Offshore Drilling Contractor) announced that the ATWOOD HUNTER has been awarded an additional contract by Burullus Gas Co. ("Burullus") to drill two firm wells off the coast of Egypt, which is estimated to take 270 days to complete. This contract requires that the rig be upgraded to include the capability of drilling high pressure wells (15,000 P.S.I.). The cost of the required equipment upgrade is estimated to be approximately $8 million (including approximately $5.0 million of equipment previously acquired but excluding rig time necessary to effect the upgrades), with equipment installation estimated to take approximately 30 days to complete. The equipment upgrade will commence immediately upon completion of the rig's current drilling program with Burullus (estimated September 2005). The contract provides for a dayrate of $62,400 during the upgrade period (estimated 30 days), an upgrade fee of $1.5 million payable at the completion of the equipment upgrade period, an operating dayrate of $125,000 during the drilling of the two firm wells (estimated 270 days), and a demobilization fee of $500,000 if the rig has no immediate ongoing work upon contract completion. Statements contained in this release with respect to the future are forward-looking statements. These statements reflect management's reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors; the Company's dependence on the oil and gas industry; the risks involved in upgrade to the Company's rigs; competition; operating risks; risks involved in foreign operations; risks associated with possible disruptions in operations due to terrorism; and governmental regulations and environmental matters. A list of additional risk factors can be found in the Company's Annual Report on Form 10-K for the year ended September 30, 2004, filed with the Securities and Exchange Commission. DATASOURCE: Atwood Oceanics, Inc. CONTACT: Jim Holland of Atwood Oceanics, Inc., +1-281-749-7804 Web site: http://www.atwd.com/

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