ERHC Energy Inc (ERHE)

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Kosmos Signs Deals for More Deepwater Rig Capacity for West Africa
Kosmos Energy Wednesday, June 25, 2008


Kosmos Energy has signed agreements with Atwood Oceanics Pacific Limited, a wholly owned subsidiary of Atwood Oceanics, Inc., and Noble Energy, Inc. under which Kosmos will utilize Atwood’s moored semisubmersible rig "Atwood Hunter" to pursue its deepwater drilling program offshore West Africa. The rig provides Kosmos with additional capacity to accelerate its West African exploration, appraisal and development drilling, particularly in Ghana where the company discovered the prolific Jubilee oil field. Noble Energy will share the rig with Kosmos and intends to utilize the "Atwood Hunter" for additional drilling offshore West Africa.

Under the three-and-a-half-year agreement, Kosmos will have use of the "Atwood Hunter" for 27 months beginning in April 2009. Kosmos’ share of the drilling contract commitment is more than US$400 million. Kosmos and Noble Energy have the option to extend the drilling contract for one year.
"We are fortunate these transactions have given us additional rig capacity for several years in light of today’s tight deepwater rig market," Musselman added. "This new addition to the rig fleet operating for Kosmos in West Africa, along with our recently announced $500 million additional equity from Kosmos Energy investors Blackstone Capital Partners and Warburg Pincus, will enable us to execute our strategy in Ghana. We plan to evaluate the country’s hydrocarbon resources expeditiously, accelerating oil production and value creation, which will significantly benefit the government and people of Ghana."

"We are pleased to work together with Noble Energy and Atwood Oceanics, two solid companies that have vast West African experience," said James C. Musselman, Kosmos Chairman and Chief Executive Officer. "The historical performance of the ‘Atwood Hunter’ and its operational capabilities are ideal for the deepwater conditions in the Gulf of Guinea.

http://www.rigzone.com/news/article.asp?a_id=63431



Atwood Hunter Grabs Gigs with Noble and Kosmos
Atwood Oceanics Wednesday, June 25, 2008


Atwood Oceanics, Inc. announced that the ATWOOD HUNTER, owned by the firm's wholly-owned subsidiary, Atwood Oceanics Pacific Limited (AOPL), has been awarded contracts by Noble Energy, Inc. for work in the eastern Mediterranean Sea and by Kosmos Energy Ghana HC and Noble Energy for work offshore West Africa for a combined term of four years. These contracts provide for an operating dayrate of US $511,000 while working in the eastern Mediterranean Sea, approximately US $538,000 while working offshore

Ghana and approximately US $545,000 while working in other West African designated areas. All dayrates are subject to adjustments pursuant to cost escalation provisions of the contracts. The Kosmos/Noble Energy contract provides for a one year option at mutually agreed rates.

Immediately upon the ATWOOD HUNTER completing its current work offshore Mauritania (estimated September 2008), the rig will be relocated to the eastern Mediterranean Sea (estimated to take 35 days) to perform the Noble Energy contract (estimated to take 80 to 160 days to complete) and then mobilized to West Africa (estimated to take 55 days) to commence the combined Kosmos and Noble Energy contract, with the rig being moved between Ghana and other designated areas at various intervals. The initial work in Ghana for Kosmos is estimated to take 270 days to complete. These contracts provide that Noble Energy and Kosmos will provide all tow vessels and pay a dayrate of approximately $460,000 during all mobilization periods.

http://www.rigzone.com/news/article.asp?a_id=63406