Jefferies 2013 Global Energy Conference November 12-13, 2013
Forward-looking Statements The information and statements made in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements concerning estimated contract expiration dates, dayrates, expected rig demand and capital spending by customers, estimated dates for completion of repairs and upgrades and commencement dates of new contracts, expected useful lives of rigs, expected capital cost and shipyard downtime, as well as information that may be affected by delays in obtaining drilling permits in the Gulf of Mexico. Such statements are subject to a number of risks, uncertainties and assumptions, including without limitation, early termination by the customer pursuant to the contract or otherwise, cancellation or completion of certain contracts earlier than expected, our ability to obtain, renew or extend our long-term international contracts, or enter into new contracts, when such contracts expire, the potential inability of our customers to obtain drilling permits that would cover the entire duration of our contracts in the U.S. Gulf of Mexico or otherwise satisfy regulatory requirements that may be then in effect, operational difficulties, shipyard and other delays, government and regulatory actions and other factors described in the Company s annual report on Form 10-K and its most recent periodic reports and other documents filed with the Securities and Exchange Commission, which are available free of charge at the SEC s website at www.sec.gov or the company s website at www.herculesoffshore.com. The Company cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements. 1
Overview
A Global Leader in Shallow Water Services Overview Global leader in jackup drilling and liftboat services 40 jackup rigs - third largest worldwide fleet 24 liftboats - largest international fleet Operations in nine countries on three continents Listed on NASDAQ (ticker: HERO) with an enterprise value of ~ $2.0 billion Worldwide Operations (1) Highly experienced senior management team with experience in all major jackup drilling regions worldwide Qualified contractor with major integrated oil companies and national oil companies Regions where Hercules Offshore rigs have operated Hercules Offshore current shore base locations 3
Transforming the Company for the Next Chapter Positioning the Company for future growth: 1. High-grade asset base Acquisition of Discovery Offshore Sale of Domestic Liftboats and Inland Barges 2. Increase earnings visibility Revenue backlog at record high of over $1 billion Five-year contract extensions for Middle East jackups 3. Lower cost of capital Latest debt refinancing lowers borrowing cost and extends maturity Early redemption options on remaining debt securities 4
Hercules Triumph Inaugural Contract Initial contract secured with Cairn India Limited Total contract value is approximately $36.6 million Base dayrate in the $214k - $216k range Approximately $13 million in mobilization fees Effective dayrate in the $330k - $335k range inclusive of mobilization fees Contract term of approximately 4 months 5
Blockbuster Middle East Contract Extensions Five-year contract extensions on the Hercules 261 and Hercules 262 Total revenue backlog of approximately $465 million Extensions are priced at over 50% higher than current dayrates New dayrates will commence in late 4Q14 Strong indication of customer s desire for, and longevity of jackup rigs of this class Positive reflection of Company s relationship with world-class operator 6
Business Outlook
Domestic Offshore Segment Overview Global recession and Macondo created extreme conditions in 2009 and 2010 U.S. GOM Supply/Demand of Marketed Jackups 120 Near the trough (April 2011), Hercules acquired main competitor, just as demand started to improve Customer shift to oil/liquids-rich activity driving demand Since late 2011, marketed jackup utilization has averaged ~90% Tight environment has allowed for higher dayrates and healthy backlog Rig Count 100 80 60 40 Marketed Supply 20 Total Contracted 0 Source: ODS-Petrodata Limited excess rig capacity since late 2011 8
U.S. GOM Supply vs. Demand U.S. GOM Jackup Supply and Demand as of October 29, 2013 80 Number of Rigs 60 40 20 58 (20) 38 0 92% Industry Utilization of Marketed Rigs 38 35 0 Current Jackup Supply (1 Less: Cold Stacked Marketed Supply Planned Jackup Mobilizations to or from the U.S. GOM Visible Marketed Supply GOM Demand Industry utilization of jackup rigs (excluding workover rigs) has been near full utilization since fourth quarter 2011 Hercules Offshore has 18 marketed rigs, with contracts for all marketed rigs (2) (1) Excludes Hercules 265 (2) As of October 22, 2013 Fleet Status Report, excluding Hercules 265 Source: ODS-Petrodata and Company estimates 9
Domestic Offshore Backlog Company Average Days Backlog per Marketed Rig U.S. GOM 250 225 200 175 (1) Average # of Days 150 125 100 75 50 25 0 Company backlog per rig expected to improve by year end 2013 Healthy levels of backlog provides marketing flexibility and pricing support Source: Company Fleet Status Report 10
Leading Edge Dayrates Hercules Offshore Leading Edge Dayrates U.S. GOM 125 140 115 105 95 85 75 65 55 45 130 120 110 100 90 80 70 35 25 * Rates for 250MC and 300MC prior to April 2011 are based on Seahawk Drilling Fleet Status Report disclosures Source: Company Fleet Status Report disclosures from January 2011 through October 2013 11 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Dayrate ($000 per day) Dayrate ($000 per day) Apr-13 Jul-13 Oct-13 60 50 200MC 250MS 250MC* 300MC* 350ILC
Large and Diverse Domestic Customer Base Diverse group of operators in the U.S. GOM, ranging in size from mega-cap to private E&P Top three operators account for approximately 40% of U.S. GOM jackup demand Remaining operators are fragmented, with 15 E&P companies running two or less rigs Over last three years, Company s customer base expanded to 35 operators from 23 in 2009 Other 26% U.S. GOM Industry Customers Mix (1) Fieldwood Energy 17% Chevron 14% LLOG 6% Arena Energy 6% EPL Oil & Gas Inc Tana 6% Exploration 6% (1) U.S. GOM jackup rig operators as of October 29, 2013 Source: ODS-Petrodata Northstar Offshore 8% Renaissance Petroleum 5% Energy XXI 6% 12
U.S. GOM Shelf M&A Activity GOM Shelf E&P Transaction Values (1) Closing Date Buyer Seller Deal Value ($mm) % Oil Dec-10 Energy XXI ExxonMobil $1,012 55% Feb-11 EPL Oil & Gas Anglo-Suisse $201 92% May-11 Tana Exploration Maritech Resources $222 63% May-11 Black Elk Merit Energy $39 31% May-11 Dynamic Offshore Woodside/Providence $43 16% Aug-11 Dynamic Offshore ExxonMobil $183 39% Aug-11 W&T Offshore Shell $71 27% Sep-11 Dynamic Offshore Moreno Offshore $68 65% Nov-11 EPL Oil & Gas Stone Energy $38 96% Dec-11 KNOC Northstar Offshore $201 NA Apr-12 Sandridge Energy Dynamic Offshore $1,208 51% May-12 EPL Oil & Gas W&T Offshore $32 52% Oct-12 Renaissance Offshore McMoran Exploration $28 77% Oct-12 Northstar (Natural Gas Partners) Private $160 NA Nov-12 EPL Oil & Gas Hilcorp $550 54% Feb-13 Talos Energy Helix Energy Solutions ~ $300 (2) ~ 42% Jul-13 Petroquest Hall-Houston $192 34% Sep-13 Fieldwood Energy Apache $3,750 54% (1) Upstream Gulf of Mexico shelf transactions greater than $25 million in value (2) Deal value estimate based on percentage allocation of reserves from shelf properties Source: Global Hunter Securities and Company estimates Active M&A market for GOM shelf properties positive for drilling demand Transactions highlight significant oil component to GOM Shelf properties 13
Reactivation Matrix Capital Payback Analysis (1) (m onths to payback) Reactivation Capital Cost ($ in millions) Dayrate Assumption $80,000 $90,000 $100,000 $110,000 $120,000 $ 14 11.4 9.3 7.9 6.8 6.0 $ 16 13.0 10.6 9.0 7.8 6.9 $ 18 14.6 12.0 10.1 8.8 7.7 $ 20 16.2 13.3 11.2 9.7 8.6 $ 22 17.9 14.6 12.4 10.7 9.5 Hercules 209 reactivation cost Hercules 203 reactivation estimate (1) Hercules Offshore estimates based on 90% utilization and incremental operating cost of $35,000 per day per rig (net of coldstacking costs) Source: Hercules Offshore estimates 14
Domestic Offshore Potential Earnings Upside Incremental EBITDA Analysis (1) ($ in m illions, except dayrate) Increase in Average Dayrate $5,000 $10,000 $15,000 $20,000 $25,000 18 $30 $59 $89 $118 $148 Number of Rigs Working 19 $47 $78 $109 $141 $172 20 $64 $97 $130 $163 $196 21 $82 $116 $151 $185 $220 22 $99 $135 $171 $207 $243 23 $116 $154 $192 $230 $267 24 $134 $173 $212 $252 $291 Cost structure for working rigs is relatively fixed, resulting in a large portion of incremental dayrate flowing directly to EBITDA (1) EBITDA is a non-gaap financial measure of earnings, or net income, before interest, income taxes, depreciation and amortization. Calculation shows the incremental EBITDA based on various dayrate changes and assuming 90% utilization. Incremental EBITDA calculation from rig reactivations (greater than 19 working rigs) assumes baseline dayrate of $90,000, utilization of 90%, and incremental operating cost of $38,000 per day per rig (net of coldstacking costs). Source: Hercules Offshore estimates 15
Recent Fixtures in U.S. GOM vs. International Markets U.S. GOM Mexico West Africa Middle East SE Asia Fixtures Ensco 99 (250 IC) GSP Fortuna (300 IC) Noble Ed (250 IC) Hercules 261 (250 IC) Key Gibraltar (300 IC) Dayrate $125,000 ~$108,000 $127,000 $136,000 $156,000 Term 9 months ~2.5 years 18 months 5 years 12 months Source: ODS-Petrodata and Company Other factors to consider before rig moves to/from U.S. GOM: Mobilization cost ($5 million to $10+ million) Insurance cost (up to 60% higher in US GOM) Labor cost and existing shorebase/scale Income tax rates typically higher in the U.S. GOM Opportunity cost to leave existing market 16
International Jackup Market Snapshot Current international jackup rig demand above prior peak in 2008 Demand in most major international markets has surpassed prior peak Middle East Southeast Asia West Africa Mexico Largest global consumers have aggressive expansion plans Saudi Aramco and Pemex have doubled their jackup rig fleets since early 2011 Both NOCs expected to add jackup rigs to their fleet Rig Count Worldwide ex. US GOM Jackup Supply / Demand 460 440 Total Supply 420 Marketed Supply 400 Total Contracted 380 360 340 320 300 280 CurrentDemand: 409 260 Prior Peak Demand: 334 (Oct-08) 240 Current Excess Marketed Capacity: 21 220 Current Stacked Capacity: 17 200 Jan 2005 Jun 2005 Nov 2005 Apr 2006 Sep 2006 Feb 2007 Jul 2007 Dec 2007 May 2008 Oct 2008 Mar 2009 Aug 2009 Jan 2010 Jun 2010 Nov 2010 Apr 2011 Sep 2011 Feb 2012 Jul 2012 Dec 2012 May 2013 Source: ODS-Petrodata International Jackup Supply/Demand Oct 2013 17
Ultra High-Spec Rigs Command Premium Pricing Ultra high-specification jackup segment (1) Jackup fixtures by class since 2010 (2) 635 600 70 $300,000 550 500 507 27 $250,000 Average dayrate Global jackup rig count 450 400 350 300 250 200 150 100 235 150 330 330 Dayrate $200,000 $150,000 $100,000 $50,000 $222,960 $140,486 $82,231 50 0 Delivered Including newbuilds $- Standard New since 2000 Ultra-high spec Leading capabilities within the jackup market Standard Premium Ultra high-specification Historical premium pricing advantage (1) `Ultra high-specification rigs defined as jackups with a minimum 2 million lbs of hook load capacity, minimum 75 feet cantilever reach and harsh environment capabilities. Premium rigs defined as those that are not ultra high-specification but were built in year 2000 or after. Standard rigs defined as those that are neither ultra high-specification nor premium (2) Includes new mutual contract fixtures only. Excludes US Gulf of Mexico and Norway fixtures Source: ODS-Petrodata 18
International Offshore Drilling Outlook Q1 Q2 FY 2013E FY 2014E Q3 Q4 Q1 Q2 Q3 Q4 Hercules Triumph SE Asia $214-216k (1) Hercules Resilience SE Asia Hercules 267 W. Africa $108-110k $108-110k Hercules 266 Middle East $116-118k (2) $116-118k (2) Hercules 262 Middle East $79-81k $79-81k $117-119k Hercules 261 Middle East $83-85k $83-85k $135-137k Hercules 208 SE Asia $95-97k $127-129k Hercules 260 W. Africa $89-91k $106-108k $106-108k Hercules 170 Middle East Contracted Available Shipyard Under Construction (1) Hercules Triumph dayrate does not include mob fee payments of approximately $13 million, which will be recognized over life of contract (2) Hercules 266 dayrate does not include mob fee payment of $25 million, which will be recognized over life of contract Source: Fleet Status Report as of October 22, 2013 and Company Reports 19
International Liftboats Largest liftboat provider in West Africa Long term demand growth, tempered by competition creep Acquisition of Bull Ray expands high end market opportunities Established presence in Middle East Robust demand driven by construction and well servicing activity Expect performance improvement due to new long term contracts Revenue / EBITDA Rates and Utilization $150 60% $30,000 100% $125 $25,000 90% 50% Revenue / EBITDA ($mm) $100 $75 $50 $25 40% 30% EBITDA Margin Dayrate $20,000 $15,000 $10,000 $5,000 80% 70% 60% 50% Utilization Rate $0 2008 2009 2010 2011 2012 20% $0 2008 2009 2010 2011 2012 40% Revenue EBITDA EBITDA Margin Dayrate Utilization 20
Corporate Initiatives
Focusing on Attractive Asset Segments Revenue Mix by Segment (1) Figures based on LTM revenue ending March 31, 2013. (2) International Offshore segment includes pro forma estimate of Discovery (mean of Wall Street consensus estimates per I/B/E/S as of June 21, 2013), Hercules 266 and Hercules 267 revenues on a full year basis. International liftboats includes pro forma estimate of Bull Ray revenues on a full year basis 22
$1,200 $1,000 $800 $600 $400 $200 $0 2Q13 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 3Q13 Significant Expansion of Revenue Backlog Total Revenue Backlog (1) Current Revenue Backlog = $1.1 Billlion Contracted Backlog ($ millions) As of October 22, 2013 Fleet Status Report 23
Conclusion
Investment Highlights Discovery Offshore acquisition is a significant step toward fleet renewal and high-grading of assets Positive industry trends continue in the U.S. GOM Strength of International jackup market demonstrated by recent Hercules Triumph contract in India and contract extensions in the Middle East Extended backlog increases visibility and expected to reduce volatility Recent refinancing further strengthens balance sheet and improves financial flexibility Proactive management team that have displayed effective stewardship of assets and discipline with supply rationalization 25
APPENDIX 26
Domestic Offshore Marketed Rig Data Domestic Offshore Fleet Status as of 10/22/13 Contract Est. Duration Rig Name Rig Type Location Customer / Status Dayrate ($000s) (1) Days Date Hercules 120 120' - MC, TD GOM Shipyard 10/25/13 Chevron 64-66 67 12/31/13 Hercules 150 150' - ILC, TD GOM Northstar 89-91 76 01/06/14 Hercules 173 173' - MC, TD GOM Chevron 64-66 70 12/31/13 Hercules 200 200' - MC, TD GOM Walter Oil & Gas 101-103 138 03/09/14 Hercules 201 200' - MC, TD GOM EPL 106-108 152 03/23/14 Hercules 202 200' - MC, TD GOM MC Offshore 101-103 17 11/08/13 Hercules 203 200' - MC, TD GOM Shipyard 06/30/14 Hercules 204 200' - MC, TD GOM Chevron 81-83 70 12/31/13 See Comments 11/08/13 Hercules 205 200' - MC, TD GOM Shipyard 02/06/14 Black Elk 84-86 22 02/28/14 Black Elk 101-103 180 08/27/14 Hercules 209 200' - MC, TD GOM Sandridge 101-103 4 10/26/13 EnVen 109-111 35 11/30/13 Hercules 212 200' - MC, TD GOM Renaissance 86-88 6 10/28/13 Hercules 213 200' - MC, TD GOM EPL 101-103 21 11/12/13 106-108 180 05/11/14 Hercules 214 200' - MC, TD GOM Apache 101-103 130 03/01/14 (1) Contract dayrates shown in the table above are full contract operating dayrates, which may include estimated contractual adjustments for changes in operating costs and reimbursable cost items for operating expenses such as crew and may also include additional services and personnel that may be requested by the customer from time-to-time. However, the dayrates do not include certain non-recurring revenues such as lump sum mobilizations and demobilizations. The actual dayrate will depend on a number of factors, many of which are beyond the control of the company. The average dayrate over the term of the contract will be lower and could be substantially lower and are subject to numerous risks, as disclosed in the company s filing with the Securities and Exchange Commission. Lower dayrates typically apply when the rig is under contract but not fully operating, including periods when the rig is moving, waiting on weather, on standby, down for repairs or maintenance or during other operational delays or events of force majeure. 27
Domestic Offshore Marketed Rig Data (continued) Contract Est. Duration Rig Name Rig Type Location Customer / Status Dayrate ($000s) (1) Days Date Hercules 251 250' - MS, TD GOM Domestic Offshore Fleet Status as of 10/22/2013 (continued) Shipyard 11/15/13 Arena 102-104 105 02/28/14 Castex 102-104 65 05/04/14 Hercules 253 250' - MS, TD GOM Tana 96-98 43 12/04/13 Tana 89-91 66 12/27/13 Hercules 263 250' - MC, TD GOM Walter Oil & Gas 97-99 30 02/02/14 Tana 97-99 40 03/14/14 Tana 109-111 180 09/10/14 Castex 86-88 46 12/07/13 Shipyard 03/07/14 Hercules 264 250' - MC, TD GOM 116-118 90 06/05/14 Castex 119-121 90 09/03/14 Hercules 265 250' - MC, TD GOM See Comments Shipyard 12/31/13 Hercules 300 300' - MC, TD GOM 96-98 160 06/09/14 Arena 99-101 180 12/06/14 Renaissance 134-136 57 12/18/13 Hercules 350 350' - ILC, TD GOM Arena 136-138 90 03/18/14 Arena 136-138 365 03/18/15 Average 154 days (1) Contract dayrates shown in the table above are full contract operating dayrates, which may include estimated contractual adjustments for changes in operating costs and reimbursable cost items for operating expenses such as crew and may also include additional services and personnel that may be requested by the customer from time-to-time. However, the dayrates do not include certain non-recurring revenues such as lump sum mobilizations and demobilizations. The actual dayrate will depend on a number of factors, many of which are beyond the control of the company. The average dayrate over the term of the contract will be lower and could be substantially lower and are subject to numerous risks, as disclosed in the company s filing with the Securities and Exchange Commission. Lower dayrates typically apply when the rig is under contract but not fully operating, including periods when the rig is moving, waiting on weather, on standby, down for repairs or maintenance or during other operational delays or events of force majeure. 28
International Offshore Marketed Rig Data International Offshore Fleet Status as of 10/22/2013 Contract Est. Duration Rig Name Rig Type Location Customer / Status Dayrate ($000s) (1) Days Date Hercules Resilience 400' - ILC, TD Singapore Shipyard 11/30/13 Hercules Triumph 400' - ILC, TD Singapore Enroute 10/27/13 India Cairn 214-216 110 02/14/14 Hercules 170 170' - ILC, TD Bahrain Warm Stacked Hercules 208 200' - MC, TD Singapore Shipyard 12/15/13 India Cairn 127-129 235 08/07/14 Democratic Hercules 260 250' - ILC, TD Republic of Congo Perenco 106-108 161 04/01/14 Hercules 261 Hercules 262 250' - ILC, TD 250' - ILC, TD Saudi Arabia Saudi Arabia Saudi Aramco Saudi Aramco 83-85 79-81 342 382 09/29/14 11/08/14 135-137 117-119 1,825 1,825 09/28/19 11/07/19 Hercules 266 250' - ILC, TD Saudi Arabia Saudi Aramco 116-118 769 11/30/15 Hercules 267 250' - ILC, TD Gabon Shipyard 10/31/13 Angola CABGOC 108-110 1,095 10/30/16 Average 843 days (1) Contract dayrates shown in the table above are full contract operating dayrates, which may include estimated contractual adjustments for changes in operating costs and reimbursable cost items for operating expenses such as crew and may also include additional services and personnel that may be requested by the customer from time-to-time. However, the dayrates do not include certain non-recurring revenues such as lump sum mobilizations and demobilizations. The actual dayrate will depend on a number of factors, many of which are beyond the control of the company. The average dayrate over the term of the contract will be lower and could be substantially lower and are subject to numerous risks, as disclosed in the company s filing with the Securities and Exchange Commission. Lower dayrates typically apply when the rig is under contract but not fully operating, including periods when the rig is moving, waiting on weather, on standby, down for repairs or maintenance or during other operational delays or events of force majeure. 29
International Liftboats Fleet Status September 2013 International Liftboat Fleet Status Leg Length/ Actively Revenue Per Liftboat Class Total Number Marketed Day Per Operating (Feet) of Liftboats Liftboats (1) Liftboat (2) Days Utilization (3) 230-280 4 4 $ 62,832 44 37% 170-215 6 6 38,373 115 64% 140-150 4 4 15,488 88 73% 120-130 7 7 10,400 135 64% 105 3 2 10,243 60 100% Total/Average 24 23 $ 23,889 442 64% (1) Actively marketed liftboats excludes one Nigeria cold-stacked liftboat (2) Includes reimbursables (3) Utilization is defined as the total number of operating days in the period as a percentage of the total number of calendar days in the period our liftboats were actively marketed 30
Total Debt Summary Description Amount ($millions) Coupon Rate Maturity First Call Date Senior Secured Notes $300 7 1 / 8 % Apr 2017 Apr 2014 @ 105% Senior Unsecured Notes $200 10 1 / 4 % Apr 2019 Apr 2015 @ 108% Senior Unsecured Notes $300 7 1 / 2 % Oct 2021 Sep 2016 @ 105 5 / 8 % Senior Unsecured Notes $400 8 3 / 4 % Jul 2021 Jul 2017 @ 104% Other $4 7 3 / 8 % Apr 2019 -- Convertible Senior Notes $7 3 3 / 8 % Jun 2018 (1) -- Revolver ($150 million) Undrawn -- (1) Jul 2018 -- Total Debt (2) $1,211 Recent refinance of $300 million senior unsecured notes (i) lowers coupon by 300bps, (ii) extends maturity by four years, and (iii) improves liquidity (1) Revolver interest rate is based on Total Leverage Ratio, and can range between 250 to 400 basis points (2) Pro Forma for the repayment of 10.5% Senior Notes due 2017 31
Crude Oil Driven Market in U.S. GOM Shelf Oil and condensates account for a growing percentage of US GOM Shelf production % Liquids Production in US GOM Shelf 2005 2008 2011 2012 28% 32% 37% 40% As oil prices diverged from natural gas, E&P companies have shifted drilling program to target oil Commodity Equivalent Price Ratio 2005 2008 2011 2012 Crude Oil - LLS ($/bbl) $57.74 $101.50 $112.38 $111.75 Natural Gas - HH ($/mcf) $9.04 $8.78 $4.01 $2.75 Equivalent Ratio (6:1) * 1.1x 1.9x 4.7x 6.8x Relationship between Oil/Gas Price to Production Mix Oil:Gas Price Ratio * 7.5 40% 7.0 6.5 6.0 5.5 35% 5.0 4.5 4.0 30% 3.5 3.0 2.5 2.0 25% 1.5 1.0 0.5-20% 2004 2005 2006 2007 2008 2009 2010 2011 2012 Production Mix Price Ratio % Liquids Production in US GOM Shelf * Equivalent ratio of one (1) barrel of oil to six (6) mcf of natural gas Source: Bureau of Safety and Environmental Enforcement and Bloomberg 32
Discovery Offshore Transaction Overview History of Discovery Offshore S.A. Discovery Offshore S.A., a Luxembourg-based public limited liability company, was formed in early 2011 by Hercules Offshore Discovery ordered two newbuild ultra high-specification Keppel FELS Super A jackup rigs, the Discovery Triumph and Discovery Resilience The Triumph was recently completed in June 2013 and the Resilience is scheduled to be delivered in October 2013 Prior to June 24, 2013, Hercules owned 32% of Discovery and managed Discovery On June 24 th, Hercules announced that it has acquired a majority stake in Discovery and offered to acquire the remaining shares of Discovery at NOK 15 per share On July 8 th, Hercules issued $400 million Senior Notes due 2021 @ 8.75% Tender process for remaining Discovery shares concluded on August 12, 2013 Hercules Offshore now owns 100% of Discovery Offshore Rigs officially renamed Hercules Triumph and Hercules Resilience on August 30, 2013 33
Triumph and Resilience Ultra High-Spec Jackups KFELS Super A Class is a high-specification design by Keppel FELS for harsh environment Designed for operations in the southern North Sea Able to operate in water depths up to 400 ft. Equipped with high-specification drilling equipment for drilling depths up to 35,000 ft. 2 million lbs hook load drilling system 150 men complement meeting ILO 92 standards. 120 men complement for North Sea compliance Enhanced features in KFELS Super A NOV drilling package Cameron 18-3/4 x 15,000 psi blow out preventer Enhanced leg design, extended cantilever reach and load chart Three 70-ton cranes High pressure systems constructed to comply with stringent Saudi Aramco specifications Forward wrap around quarters allow for greater deck space KFELS Super A Class provides industry leading variable load, drilling capabilities, cantilever load performance, accommodations and deck space 34