ITEM 7.01 REGULATION FD DISCLOSURE

The ATWOOD SOUTHERN CROSS has commenced its one-well drilling program (at a dayrate of $352,000) for Petronas Carigali Sdn Bhd offshore Mauritania which is expected to extend to the end of November or early December 2008. Additional contract opportunities following the completion of the one-well program are currently being pursued.

The ATWOOD HUNTER is now expected to complete its current drilling program offshore Mauritania in mid-October 2008 and will then immediately commence its mobilization to Eastern Mediterranean Sea for its four (4) year contract commitment with Noble Energy Inc. and Kosmos Energy Ghana at operating dayrates in the $500,000's.

During the quarter ended September 30, 2008, the ATWOOD EAGLE incurred a total of six unplanned zero rate days due to equipment issues. This unplanned downtime reduced revenues for the quarter by approximately $2.4 million. Our last Fleet Status Report, dated August 28, 2008, indicated that the SEAHAWK could possibly incur three (3) to five (5) zero rate days during the fourth quarter ended September 30, 2008 for equipment maintenance; however, this maintenance was completed during the quarter with no zero rate days incurred.

Information with respect to the Company's Fleet Status Report at October 10, 2008 is attached hereto as Exhibit 99.1. Such information is being furnished under Regulation FD and should not be deemed to be filed under Section 19 of the Exchange Act.

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.

ITEM 9.01 EXHIBITS

EXHIBIT 99.1 Fleet Status Report at October 10, 2008

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