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: September 11, 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 September 11, 1997 - Reading &
Bates announces that it secured commitment for an
additional newbuild ultra deepwater 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: September 11, 1997
EXHIBIT 99
FOR IMMEDIATE RELEASE Contact: Mr. Charles R. Ofner
(281) 496-5000
Reading & Bates Secures Commitment for Additional Newbuild Drillship
September 11, 1997, Houston, Texas...Reading & Bates Corporation (RB-NYSE)
announced today that agreement has been reached with Den norske stats
oljeselkap a.s. (Statoil) which calls for Statoil to commit for a minimum
of 2-1/2 years of firm work over a 5-year period for a new ultra deepwater
dynamically positioned drillship. The Statoil contract is specifically
structured to facilitate non recourse financing of the project. This is the
fourth new building project Reading & Bates has been awarded in 10 months.
This agreement results in Reading & Bates' order for a new D.P. vessel
equipped for drilling in up to 10,000 feet of water from Samsung Heavy
Industries of Korea. Statoil has the option to increase its firm commitment
from the 2-1/2 year minimum, up to the total 5 year period, exercisable by
January 1998. Should Statoil's final commitment be for less than the complete
5 years, Reading & Bates will commit for the balance of time, up to 2-1/2
years of the drilling contract for its own account and in partnerships
with other operators internationally and in the Gulf of Mexico. Total
drilling contract value is estimated at $332 million, of which Statoil's
portion is $166 million for their 2-1/2 year minimum period. The vessel is
essentially identical to the two previously announced units ordered by
joint ventures between Reading & Bates and Conoco, will be delivered during
the third quarter of 1999 and will work initially in the U.S. Gulf of Mexico.
The new vessel will be 100% owned by Reading & Bates. Like the previous
vessels, the new unit is double-hulled, 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 has provision for simultaneous drilling and testing.
Paul B. Loyd, Jr., Reading & Bates Chairman, Chief Executive Officer and
President of Reading & Bates Corporation stated, "We are very pleased to
be expanding our valued relationship with Statoil with the award of this
drilling contract which allows us to build another new, advanced deepwater
D.P. drilling vessel. Statoil's requirement for the ultra deepwater
drillship indicates a continued strong demand for this class of new
generation vessel, and, since it will be the third identical unit
delivered by Samsung, we are confident that projected price and delivery
will be met. As with our previously announced newbuild units, the drilling
contract for the Statoil drillship is being structured to facilitate off
balance sheet financing for the unit's construction which provides for
increased financial flexibility for Reading & Bates and increases our
capacity to achieve future newbuild contracts. Having been awarded four
newbuild contracts in rapid succession, all of which are state-of-the-art,
have term contracts, and enhanced financing capability, we feel that
Reading & Bates' position as the industry leader in ultra deepwater is
clearly established. This leadership is crucial to building shareholder
value as deepwater demand growth is expected to continue unabated as
evidenced by the recent lease sale in the Gulf of Mexico where operators
committed $616 million For 804 leases, 75% of which were in water depths
in excess of 800 meters."
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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