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 3, 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 April 3, 1996 - Letter
of intent with BP Exploration for continued
utilization of the "PAUL B. LOYD, JR.".
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: April 3, 1996
EXHIBIT 99
FOR IMMEDIATE RELEASE Contact: Mr. Charles R. Ofner
(713) 496-5000
April 3, 1996, Houston, Texas.....Reading & Bates Corporation
(RB-NYSE) announced that BP Exploration has issued a letter of intent for
continued utilization of the fourth-generation semisubmersible PAUL B.
LOYD, JR. on the Foinaven field and to perform development drilling in the
Schiehallion field west of Shetland in the U.K. sector of the North
Atlantic. The PAUL B. LOYD, JR. is owned by Arcade Drilling AS, a
Norwegian company in which Reading & Bates Corporation holds approximately
74% ownership interest. The PAUL B. LOYD, JR. is currently drilling for
BP Exploration Operating Company Limited on the Foinaven field west of
Shetland, and a subsidiary of Reading & Bates now operates the unit under
a management contract which began on December 4, 1995. The new drilling
contract with BP will commence November 1, 1996, and is expected to have a
term between 36 and 54 months, with the first 31 months priced at firm
dayrates. Dayrates are mutually agreed after the first 31 months. The
total contract value of the 31 month firm-priced period is approximately
$125.8 million, with the final 12 months of the 31 month period having a
contract value of $51.8 million. These contract value estimates exclude
possible gain share incentives which are based on risk/reward performance
elements to be mutually agreed.
The letter of intent with BP provides a framework which may allow
Reading & Bates to provide an additional fourth-generation rig to BP on
terms and conditions similar to those of the PAUL B. LOYD, JR. contract,
and in such an event, the contract term for the PAUL B. LOYD, JR. may be
reduced to less than 36 months, but in no event less than 20 months,
except in the event of a cancellation of the project development by BP.
Paul B. Loyd, Jr., the Company's Chairman, President and CEO stated,
"These programs are very significant to BP and the offshore drilling and
floating production business generally. We are extremely pleased that
Reading & Bates has been selected to execute demanding Schiehallion
development. This award further expands our relationship with BP as
Reading & Bates also has the dynamically positioned multiservice semi
IOLAIR working for BP west of Shetland. Once again, this new project is
graphic illustration of the earnings power of our fourth-generation units
as the market for their services has tightened and they are utilized in
the specific environments for which they were designed."
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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