Pareto Oil & Gas Conference 2011 August 30 September 1, 2011
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Hercules Offshore a global leader in shallow water services Jackups Liftboats 49 Jackups 65 Liftboats Largest jackup provider in the U.S. Gulf of Mexico; 4th largest Largest liftboat provider provider worldwide(1) worldwide…
Global footprint across multiple asset classes Global Summary Liftboats 65 Jackup Rigs 49 Inland Barges 17 Platform Rigs 1 U.S. Gulf of Mexico U.S. Gulf Coast Jackup Rigs 41 Liftboats 41 Inland Barges 17 (1) Malaysia…
Focused strategy Maintain Leading Position Diversify Geographically in Core Businesses Opportunistic Growth Focus on And Fleet Optimization Shallow Water Assets Maintain Status as an Efficient, Low-Cost Service…
History of growth August October January June August September November February 2004 2004 2005 2005 2005 2005 2005 2006 Acquired five Acquired 22 Acquired Rig 25 Acquired Rig 170 Acquired Acquired Acquired Acquired jack up rigs…
Strong culture of safety Lost Time Incident Rate (LTIR) (1) Total Recordable Incident Rate (TRIR)(2) 0.60 2.5 0.55 0.53 2.17 0.50 2.06 0.46 0.49 2 0.45 1.77 1.84 0.38 0.40 1.48 0.38 0.35 1.5 0.31 1.44 1.23 TRIR 1.14…
Global operator of offshore assets to bluechip client base Overview Bluechip clients Global leader in jackup drilling and liftboat services Strong record of operating performance with national and major oil companies Safety record…
Seasoned management team John T. Rynd Chief Executive Officer and President 30 years in drilling industry. Joined Hercules in 2005 with experience from Noble Drilling as VP Marketing and Contracts and VP Investor Relations, and at…
Key investment highlights for Hercules Offshore U.S. Gulf of Mexico jackup market fundamentals improving, as supply of rigs declines while demand shows signs of growth U.S. GOM Drilling Significant synergies realized from Seahawk…
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Company update Successful execution of initial private placement Experienced board of directors Listing of shares on the Oslo Axess Stock Exchange Construction update: management team assembled and construction commenced…
Investment highlights Discovery Offshore is a pure play, ultra highspecification jackup company Exclusive and singular focus on 2 new, ultra highspecification jackups with option for 2 Pure play on ultra high additional rigs…
Discovery Offshore Overview Company overview Structure Discovery Offshore is a newly established Luxembourgbased company Investors Hercules Offshore Owned and controlled by private placement investors Owns two ultra…
Key terms of construction and management agreements Construction agreement Management agreements (contd) Obligations of Hercules Offshore Commercial and operational obligations of Hercules Plan, supervise and manage construction and…
Turnkey contract at favorable terms Key terms of construction Key terms of options Turnkey contract for delivery of two ultra highspecification Two independent, nonassignable options for additional jackup rigs within 28 months and…
Financing of Discovery Offshore Construction cost and funding requirements Sources and uses Uses of funds Per Rig Total Turnkey yard construction contract of 208 million ( in millions) per rig Yard turnkey contract price 208 417…
Market Review and Rig Design Considerations 20
Industry trends favor new jackups Global jackup fleet Global fleet needs modernization The global jackup fleet is facing an age challenge 90 Global fleet: Existing 480 68% of existing global fleet constructed before 1986 25 years…
Keppel FELS Super A design The KFELS Super A Class is a highspecification jackup design by Keppel FELS for harsh environment operation Designed for operations in the North Sea (UK sector) Able to operate in water depths up to 400…
Keppel FELS industry leading delivery performance Keppel FELS the preferred shipyard Shipyard experience KFELS unmatched 30 Keppel FELS offers lowest execution risk 26 25 jackup rigs constructed since 2007 Built more…
Selected recent yard orders Prices have generally risen on high specification jackups constructed at reputable shipyards since the most recent cycle of orders began in 2H 2010 Discovery Offshore has secured attractive turnkey…
Discovery Offshore targeting premium dayrates Ultra highspecification jackups have longterm contracts and substantial dayrate premiums Average dayrate last eight fixtures 189,000 compared to 117,000 for recent modern but lower…
Worldwide opportunities for ultra highspecification jackups Potential clients Target markets ChevronTexaco Thailand, Angola and US Recent bidding activity is a statement of desire to change global jackup requirements to ultra…
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