SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: April 20, 1995
READING & BATES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-5587 73-0642271
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
901 Threadneedle, Suite 200, Houston, TX 77079
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 496-5000
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99 - Press Release dated April 20,
1995 - Letter of intent with
Enserch Exploration, Inc.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf of the undersigned thereunto duly
authorized.
READING & BATES CORPORATION
By /s/T. W. Nagle
-----------------
T. W. Nagle
Vice President & Chief
Financial Officer
Dated: April 20, 1995
EXHIBIT 99
FOR IMMEDIATE RELEASE: Contact: Mr. Charles R. Ofner
(713) 496-5000
Houston, Texas....April 20, 1995....Reading & Bates
Corporation (NYSE:RB) announced today that its subsidiary,
Reading & Bates Development Co., has entered into a letter of
intent with Enserch Exploration, Inc. to acquire
approximately a 20% working interest in Enserch Exploration's
Green Canyon 254 Project in the U.S. Gulf of Mexico.
Reading & Bates expects to participate, subject to the rights
of the working interest owners under the joint operating
agreement, as follows:
* The third-generation semisubmersible M. G.
HULME, JR. would receive a three year drilling
contract, plus options, for the field's development
drilling upon completion of an upgrade of the unit
for operations in up to 3300 feet of water.
* Reading & Bates would convert its second-
generation semisubmersible RIG 41, or an
equivalent unit, to a floating production vessel
(FPV) capable of processing up to 70,000 barrels of
oil per day. This FPV will be moored in
approximately 2100 feet of water at a location in
the Green Canyon area located approximately seven
miles from the subsea well clusters which would be
located in approximately 3200 feet of water.
In addition, Reading & Bates Development Co. previously
entered into a technical services agreement with Enserch to
conduct preliminary studies with respect to the use of a
floating production system to develop the Green Canyon 254
Project, and an affiliated company has entered into a letter
of intent with Enserch to provide drilling services with the
M.G. HULME, JR. prior to the upgrade.
The letter of intent is subject to definitive
documentation (including the sale and purchase agreement and
the joint operating agreement).
Paul B. Loyd, Jr., Chairman and Chief Executive Officer
of Reading & Bates Corporation stated, "We are very pleased
to be participating in this project with Enserch. Not only
have they discovered an excellent oilfield, they have worked
with Reading & Bates to structure the development in a manner
that provides the most efficient and highest present value
exploitation of the reservoir. By participating as a working
interest holder, Reading & Bates' and Enserch's goals are
perfectly aligned. Additionally, this project graphically
illustrates the inherent synergy between deepwater offshore
drilling and floating production, both in terms of the
technical disciplines and operations. The project, if
successful, would have a very substantial impact on Reading &
Bates' future earnings and cash flow, as Reading & Bates'
estimated revenues from its total involvement in this project
should exceed $350 million over a 5 to 7 year project life.
We also believe this commitment by Enserch will prove to be
the first of several by various clients to similar floating
production projects in the Gulf of Mexico and other parts of
the world. With the Amoco Liuhua project nearing successful
completion and our current involvement with Enserch in Green
Canyon, we believe Reading & Bates is rapidly establishing
itself as a leader in the growing field of floating
production."
Reading & Bates is a New York Stock Exchange listed
company, providing offshore drilling services throughout the
world. Its wholly owned subsidiary, Reading & Bates
Development Co., provides technical, construction and project
management services and floating productions systems to the
upstream offshore oil and gas industry worldwide.
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