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: January 16, 1996
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 January 15, 1996
- The Company received from Elf
Exploration Angola an approximately
270 day contract for the JIM
CUNNINGHAM.
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
Executive Vice President,
Finance and Administration
Dated: January 16, 1996
EXHIBIT 99
FOR IMMEDIATE RELEASE Contact: Mr. Charles R. Ofner
(713) 496-5000
January 15, 1996, Houston, Texas.....Reading & Bates
Corporation (RB-NYSE) announced that the third-generation
semisubmersible JIM CUNNINGHAM has been awarded a contract by
Elf Exploration Angola for the drilling of three wells,
estimated at approximately 270 days, with commencement projected
in the third quarter of 1996 in Angola. For this deepwater
program, the CUNNINGHAM will be upgraded to 1100 meter water
depth capacity with its variable deck load increased to 4000
long tons. Additionally, the contract calls for the operator to
have options for up to three additional wells with an estimated
duration of another 270 days. The total contract value for the
primary term is estimated at approximately $31.7 million. The
270 day option period, if exercised, could add another
approximate $24.3 million of contract value. The CUNNINGHAM
will enter a shipyard for the deepwater upgrade upon completion
of its committed programs in Vietnam, mobilizing to Angola
thereafter.
Paul B. Loyd, Jr., the Company's Chairman, President and CEO
stated, "We are pleased to have been awarded this
high-specification job by Elf Exploration Angola and thus have
Reading & Bates' equipment and operational expertise once again
recognized as the right combination to tackle a challenging
deepwater drilling requirement. The design of the CUNNINGHAM's
current combination chain/wire mooring system makes it a
particularly good candidate for upgrade to an improved state of
the art deepwater drilling unit. In addition to the enhanced
operational capability that the CUNNINGHAM will offer as a
result of this upgrade program, we believe the economics reflect
a sound return for Reading & Bates shareholders as well as being
reflective of the continuing strength of the high specification
semisubmersible market. West Africa continues to offer a
significant number of deepwater drilling prospects, so it
appears the CUNNINGHAM could enjoy a long-term deployment in
this nascent but expanding deepwater theater. As the Gulf of
Mexico is relatively close, it would also be a candidate for
that deepwater market upon completion of the Elf program."
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 production systems to the upstream offshore oil and
gas industry worldwide.
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