Hercules Offshore liftboat capsizes after being hit by waterspouts

Hercules Offshore (NASDAQ:HERO) reports that the Starfish, a 140 class liftboat, capsized after being struck by multiple waterspouts late in the evening on September 30, 2011.  The five crew members aboard evacuated the vessel and were rescued at sea shortly after the incident.  The crew members were treated for minor injuries and released from a Houma, Louisiana hospital.

The incident occurred at the Ship Shoal Block 116, approximately 30 miles southwest of Port Fourchon, Louisiana. Shortly after the incident, the company mobilized a nearby liftboat to the location to monitor the condition of the vessel and to coordinate the salvage efforts, which have already commenced.

The company is insured for damage to the Starfish up to the insured value of $2.5 million, subject to a $1.0 million deductible.  The deductible does not apply in the event the vessel is a total loss.  The Company also carries removal of wreck insurance, subject to a $250,000 deductible.

Hercules Offshore has notified the appropriate authorities, including the United States Coast Guard.  

October 3, 2011