ITEM 7.01 REGULATION FD DISCLOSURE

The RICHMOND (the Company's only rig in the Gulf of Mexico) has again proved its durability during hurricane season. The rig was in the path of Hurricane Gustav; however, remained on location with no damage reported. Personnel are back on the rig and are preparing to recommence drilling operations, with no zero rate downtime. During the RICHMOND'S operating history in the Gulf of Mexico, Hurricane Gustav marks the fifth hurricane to pass over the rig, with no significant damage or zero rate downtime having been incurred.

Statements contained in this report with respect to the future are forward-looking statements. These statements reflect management's reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors including; the Company's dependence on the oil and gas industry; the risks involved the construction of a rig; competition; operating risks; risks involved in foreign operations; risks associated with possible disruption in operations due to terrorism; risks associated with a possible disruption in operations due to a war with Iraq; and governmental regulations and environmental matters. A list of additional risk factors can be found in the Company's annual report on Form 10-K for the year ended September 30, 2007, filed with the Securities and Exchange Commission.

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