Hercules Offshore (NASDAQ: HERO) announced that it has entered into an agreement with a wholly-owned subsidiary of Perisai Petroleum Teknologi Bhd ("Perisai") to act as operations and maintenance manager of the Perisai Pacific 101 and Perisai Pacific 102, Perisai's newbuild Pacific Class 400 jack-up drilling rigs ("the Rigs"). The Rigs are currently under construction, with the Perisai Pacific 101 scheduled for delivery in July 2014 and the Perisai Pacific 102 about a year thereafter. Primary commercial terms of the agreement consist of the following:
Hercules will perform marketing, administrative, negotiation and rig operation services;
Hercules will receive a daily management fee equal to $4,000 per rig, payable starting at the commencement date;
Hercules will receive a daily operational fee equal to 12% of the daily EBITDA earned by the Rigs;
Hercules will be reimbursed for all operating expenses and Perisai will pay for all capital expenditures with respect to the Rigs;
Hercules has the right of first refusal to purchase the Rig(s).
