FEBRUARY 28, 2013 — Hercules Offshore, Inc. (Nasdaq: HERO) reports 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. Hercules Offshore expects the acquisition to close in early March 2013.
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.
John T. Rynd, Chief Executive Officer and President of Hercules Offshore stated, "Demand for liftboats in West Africa has been very strong in recent years, particularly in the higher-end market segment that requires larger vessel classes. Our acquisition of the Titan 2 expands our opportunity set in the region to meet the most attractive segment of this market, and is part of our ongoing effort to renew our fleet. The Titan 2 is one of the premier liftboats in the region, with a solid record of operations for some of the most prominent customers in West Africa."