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: November 6, 1997
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 (281) 496-5000
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99 - Press Release dated November 6, 1997 - Reading & Bates
announces update on newbuild projects.
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
(Principal Financial and
Accounting Officer)
Dated: November 6, 1997
EXHIBIT 99
FOR IMMEDIATE RELEASE Contact: Mr. Charles R. Ofner
(281) 496-5000
Reading & Bates Provides Update on Newbuild Projects
November 6, 1997, Houston, Texas..Reading & Bates Corporation (RB-NYSE)
announced today that the keel has been officially laid on the first of
three dynamically positioned, American Bureau of Shipping class DPS-3,
ultra deepwater drillships capable of drilling in up to 10,000 feet of
water. The 721-foot long vessel is being constructed in South Korea by
Samsung Heavy Industries. When completed it will carry out a five-year
drilling program for Conoco in the U. S. Gulf of Mexico.
Additionally, Reading & Bates announced award of a letter of intent to
Hyundai Heavy Industries Co., Ltd. for the construction of the "RBS-6"
ultra deepwater moored semisubmersible. Upon completion of construction of
this unit in the fourth quarter of 1999, it will enter service in the U.S.
Gulf of Mexico under the previously announced long term contract with Shell
Deepwater Development Inc. The agreement with Hyundai provides for fixed-
priced options for two additional vessels, the first with a delivery within
one month of the Shell rig. The option rigs could be delivered in a moored
or dynamically positioned mode.
Paul B. Loyd, Jr., Reading & Bates Chairman, President and CEO, stated, "We
are pleased that our drillship construction project is on schedule as
evidenced by this important milestone. With regard to the "RBS-6", we are
pleased with the outcome of our negotiations with Hyundai. The price and
delivery of the rig are very much in line with projections made which
supported our proposal to Shell, and we feel the additional rig options
could be very attractive to a number of our clients who need newbuild units
to support their ultra deepwater drilling strategies. The relationship
with Conoco and Shell since inception of these projects has been rewarding,
and we feel our selection for these drilling contracts demonstrates Reading
& Bates' leadership in deepwater technology. Adding these and the other
two newbuild units to our fleet will provide significant enhanced value for
our shareholders."
Reading & Bates Corporation is a New York Stock Exchange listed company,
providing offshore drilling services throughout the world. Its wholly
owned subsidiary, Reading & Bates Development Co., engages in the business
of acquiring interests in offshore oil and gas properties and thereby
participates in reservoir risk sharing. Through its TOPS joint venture, a
full range of field development contracting alternatives is offered to oil
and gas companies, including such services as drilling, marine and subsea
construction and production services. In July Reading & Bates and Falcon
Drilling Company Inc. announced that they have agreed to combine their
companies into a new company-- R&B Falcon Corporation--which will operate
the world's largest offshore drilling fleet.
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