Hercules liftboat engulfed in fire on adjacent rig

Hercules Offshore (NASDAQ: HERO) reports that the Mako, a 175ft class liftboat operating in Nigeria, was engulfed by a fire that originated on a third-party rig, the KS Endeavor, during the early morning hours on January 16, 2012. 

The Mako was providing excess storage services adjacent to the KS Endeavor drilling rig at the time of the incident.

The incident occurred approximately 250 kilometers west of Port Harcourt, Nigeria.  All 27 personnel aboard the Mako were safely rescued and transported to a local clinic for medical evaluation and treatment. No major injuries have been reported.

At this time, Hercules has not been able to confirm the extent of the damage to the Mako, although visual indication from employees at the site indicated that the vessel sustained significant damage. The vessel has an insured value of $8.0 million, subject to a $1.0 million deductible. The deductible would 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 has notified the appropriate authorities, including the United States Coast Guard.

January 17, 2012