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: May 2, 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 May 1, 1997 - Reading &
Bates announces formation of a new joint venture
with Conoco to acquire a second dynamically
positioned drillship.
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: May 2, 1997
EXHIBIT 99
FOR IMMEDIATE RELEASE Contact: Mr. Charles R. Ofner
(281) 496-5000
Reading & Bates and Conoco to Build Second DP Class 3 Drillship
May 1, 1997, Houston, Texas.....Reading & Bates Corporation announced today
expansion of its relationship with Conoco by formation of a new joint venture to
acquire a second dynamically positioned drillship capable of drilling in water
depths up to 10,000 feet. The new joint venture company will be 60% owned by
Reading & Bates and 40% owned by Conoco. The vessel will carry out a 2.5 year
drilling program for Conoco in the Gulf of Mexico and possibly international
areas, and the balance of the initial contract period of five years will be
contracted by Reading & Bates for its own account and in partnerships with other
operators in the Gulf of Mexico and internationally. Total contract value is
estimated at $310 million.
The vessel is essentially identical to the previously announced unit
ordered by Reading & Bates and Conoco, and will also be constructed by Samsung
Heavy Industries of Korea with delivery scheduled for first quarter of 1999.
The drilling unit, a 721 feet long double-hulled vessel, incorporates the most
stringent American Bureau of Shipping DPS-3 dynamically positioned
classification, has the additional flexibility to perform extended well tests
(EWT), includes crude oil storage and offloading capacity, provision for
simultaneous drilling and testing and eventual conversion to a floating
production storage and offloading (FPSO) vessel.
Paul B. Loyd, Jr., Reading & Bates Chairman, president and CEO, stated, "We
are very pleased to be expanding our relationship with Conoco to construct the
second of what we believe is the finest ultra deepwater drillship ever designed.
We certainly agree with Conoco's assessment of a significant shortage of deep-
water drilling units, and we very much appreciate Conoco's continued
confidence in Reading & Bates in partnering in this new vessel."
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., 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 facilities.
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