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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JUNE 3, 1999
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MARINE DRILLING COMPANIES, INC.
(Exact name of registrant as specified in its charter)
TEXAS 1-18309 74-2558926
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or organization) File Number) Identification No.)
ONE SUGAR CREEK CENTER BLVD., SUITE 600
SUGAR LAND ,TEXAS 77478-3556
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (281) 243-3000
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Item 5. Other Events.
On June 3, 1999, the Company issued the press release filed as
Exhibit 99.1 hereto, updating the status of the Company's MARINE 500 and
MARINE 700 drilling rig construction projects and drilling contracts.
Item 7. Financial Statements, Pro-Forma Financial Information and Exhibits.
(c) Exhibits.
99.1 Press Release dated June 3, 1999.
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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 by the
undersigned hereunto duly authorized.
MARINE DRILLING COMPANIES, INC.
Date: June 3, 1999 By: /s/ T. SCOTT O'KEEFE
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Name: T. Scott O'Keefe
Title: Sr. Vice President & CFO
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EXHIBIT INDEX
99.1 Press Release dated June 3, 1999
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EXHIBIT 99.1
PRESS RELEASE
Contact: T. Scott O'Keefe
Sr. Vice President & CFO
(281) 243-3000
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NYSE SYMBOL: MRL
FOR IMMEDIATE RELEASE
JUNE 3, 1999
MARINE DRILLING COMPANIES, INC. UPDATES STATUS OF MARINE 700 AND 500 PROJECTS
SUGAR LAND, TEXAS--June 3, 1999--Marine Drilling Companies, Inc. (NYSE:MRL)
today issued the following information with respect to the status of its
MARINE 700 and MARINE 500 drilling rigs.
MARINE 700
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On June 2, 1999, the Company received a letter from Esso Exploration Inc., the
drilling contract counterparty for the MARINE 700 drilling rig. The drilling
contract has a term of five years at a normal operating dayrate of $165,410
plus adjustments and provides that Esso may terminate the contract if the rig
is not delivered by July 15, 1999, unless the delay is caused by Esso or its
subcontractors.
In the letter, Esso states their concern about the quality of rig construction
and the considerable amount of work yet to be done to complete and commission
the rig prior to July 15, 1999. Esso further states that, in their view,
commissioning (including inspections and acceptance testing by Esso) could
require three or more months and that it is therefore likely that the earliest
the rig will be ready for delivery would be late August. The letter further
states that "if the Marine 700 does not meet quality or schedule requirements,
Esso would likely exercise its right to terminate the Drilling Contract" and
that at this time, Esso is "not optimistic that we would give further
consideration to amending the contract." The letter concludes with a statement
that "as a precautionary measure, we have begun to search for an alternate rig
to complete the remainder of the Diana Project work that was planned for the
Marine 700."
The Company continues to believe it will be able to meet the delivery deadline
and the required quality standards of the contract, although, as has been
previously disclosed, there is some risk that the Company will not meet the
July 15 contract deadline. As such, the Company intends to respond to Esso
accordingly.
MARINE 500
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The MARINE 500 upgrade project is nearing completion and the drilling rig
should depart for Western Australia during the second week of June. The rig
will work for West Australian Petroleum Pty, Ltd. under a contract that expires
on December 31, 2001.
The anticipated departure date of the MARINE 500 has changed from late
May to the second week of June due to difficulties encountered during the
equipment commissioning process relating to the anchor chain system and the
hydraulic system. Structural changes to the anchor chain lockers are currently
being completed to ensure the proper spooling of the chains, and final testing
of the hydraulic system has been delayed slightly due to debris identified in
the system. The commissioning of the other systems that are dependent on the
hydraulic system, including the top drive, the crown mounted compensator, the
blow out preventer ("BOP"), the BOP crane and the BOP carrier have also been
delayed.
Marine Drilling Companies, Inc. is an offshore drilling contractor
with a fleet of 17 offshore drilling rigs consisting of 15 jackups, one of
which is currently configured as an accommodation unit and two semi-submersibles
located in the U.S. Gulf of Mexico and certain international markets. The
Company also operates one semi-submersible rig pursuant to a bareboat charter.
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This press release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. All statements, other than statements of historical
facts, included in this press release that address activities or events the
company believes will or may occur in the future are forward-looking
statements. Such statements are subject to a number of uncertainties that are
discussed in the company's most recent Forms 10-K and 10-Q. Investors are
cautioned that actual results may differ materially from those projected in
the forward-looking statements.
For online information about Marine Drilling Companies, Inc.
visit www.mardril.com
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