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: June 30, 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 June 30, 1997 - Reading & Bates
announces that it has entered into a letter of intent
with Shell Deepwater Development Inc. to build a new
generation semisubmersible.
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: June 30, 1997
EXHIBIT 99
FOR IMMEDIATE RELEASE Contact: Mr. Charles R. Ofner
(281) 496-5000
Reading & Bates Awarded Contract by Shell Deepwater Development Inc.
To Build New Generation Semisubmersible
June 30, 1997, Houston, Texas....Reading & Bates Corporation (RB-NYSE)
announced today that its wholly owned subsidiary, Reading & Bates Drilling
Co., has entered into a letter of intent with Shell Deepwater Development
Inc. for the provision of a new generation ultra deepwater moored
semisubmersible, the "RBS-6", under a firm five year contract. The letter
of intent is subject to approval by the boards of directors of both
companies, and to execution of a mutually agreeable drilling contract.
The innovative design of the "RBS-6" builds on concepts pioneered in the
construction of the "Jack Bates" and was developed by Reading & Bates'
engineering department in conjunction with the engineering subsidiary of
Ishikawajima-Harima Heavy Industries Co., Ltd. who were the builders of
the "Jack Bates". The new semisubmersible will have a variable deck load
of 6000 metric tons and can operate in a moored configuration in water
depths up to 8000 feet. During the initial contract period, the rig will
operate in the U.S. Gulf of Mexico. However, the design is suitable for
worldwide service, including the harsh environments of the North Sea.
The five year contract is expected to provide revenues of approximately
$335 million against an expected construction cost of $235 million,
exclusive of capitalized interest and other non-hardware costs. The
drilling contract is being structured to facilitate off balance sheet
financing by Reading & Bates by using the Shell Deepwater Development Inc.
drilling contract as the primary financing collateral. Delivery is
scheduled for January 2000.
Paul B. Loyd, Jr., the Company's Chairman, Chief Executive Officer and
President said, "Shell has always been one of our most important clients,
and they are the technology leader in deep water drilling and development
in the Gulf of Mexico. We therefore are exceptionally proud to have been
selected by them to provide this newest generation semisubmersible. The
"RBS-6" will be the world's premier deepwater semisubmersible drilling
unit which will operate in water depths beyond the capability of the
existing semisubmersible fleet. Our selection for this important project
reaffirms our capability and commitment to lead the industry in technology
related to deep water drilling and to continue to aggressively build
shareholder value in our core contract drilling business. It is our
belief that our technological expertise in deep water design and
operations were responsible for the award of this important contract, and
the innovative commercial contracting strategy results in significant
return on equity while providing Shell an outstanding drilling unit at a
reasonable price. And, this should be the first in a series of near term
announcements related to Reading & Bates Drilling Co. that will clearly
demonstrate leadership in the industry as well as future profitable growth
in this segment of Reading & Bates' business."
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 services.
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