November 13, 2017

Luxembourg based Pacific Drilling announced that, with the aim to optimize its capital structure pending recovery in the floating rig drilling industry, it and certain of its domestic and international subsidiaries have filed petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The Company intends to use the Chapter 11 process to pursue a comprehensive restructuring of the Company’s approximately $3.0 billion in principal amount of outstanding funded debt. The Company also announced a net loss for third-quarter 2017 of $157.5 million, compared to a net loss of$138.1 million for second-quarter 2017, and net income of $0.2 for third-quarter 2016.
Contract drilling revenue for third-quarter 2017 was $82.1 million, which included $5.5 million of deferred revenue amortization, compared to second-quarter 2017 contract drilling revenue of $67.1 million, which included $5.1 million of deferred revenue amortization. The increase in revenues resulted primarily from the Pacific Scirocco starting its contract with Hyperdynamics mid second-quarter 2017 compared to operating the majority of third-quarter 2017.
Pacific drilling advised that the company secured two contracts including a contract extension. Pacific Bora was granted a contract extension offshore Nigeria by Erin Energy at a dayrate of $150,000. Pacific Santa Ana is reported mobilizing for a five-month plug and abandon campaign offshore Mauritania for Petronas at a dayrate of $265,000. The UDW drillships Pacific Scirocco, Mistral, Khamsim and Meltem are reported idle in Tenerife. Pacific Sharav is drilling in the Gulf of Mexico for Chevron on a 5 year contract at a dayrate of $550,000. (Source: Pacific Drilling)