Item 7.01 Regulation FD Disclosure
Fleet Status
On November 28, 2012, Hercules Offshore, Inc. (the "Company") is posting on its
website at www.herculesoffshore.com a report entitled "Hercules Offshore Fleet
Status Report" (the "Fleet Status Report"). The Fleet Status Report includes the
Hercules Offshore Rig Fleet Status (as of November 28, 2012), which contains
information for each of the Company's drilling rigs, including contract dayrate
and duration. The Fleet Status Report also includes the Hercules Offshore
Liftboat Fleet Status Report, which contains information by liftboat class for
October 2012, including revenue per day and operating days. The Fleet Status
Report is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is
incorporated herein by reference.
The information furnished pursuant to Item 7.01, including Exhibit 99.1, shall
not be deemed to be "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934 and will not be incorporated by reference into any
registration statement filed by the Company under the Securities Act of 1933
unless specifically identified therein as being incorporated therein by
reference.
The information and statements made in the Fleet Status Report that are not
historical facts are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements include statements
concerning estimated contract expiration dates, dayrates, estimated dates for
completion of repairs and upgrades and commencement dates of new contracts, as
well as information that may be affected by the continued delays in obtaining
drilling permits in the Gulf of Mexico. Such statements are subject to a number
of risks, uncertainties and assumptions, including without limitation, early
termination by the customer pursuant to the contract or otherwise, cancellation
or completion of certain contracts earlier than expected, our ability to renew
or extend our long-term international contracts, or enter into new contracts,
when such contracts expire, the potential inability of our customers to obtain
drilling permits that would cover the entire duration of our contracts in the
U.S. Gulf of Mexico or otherwise satisfy regulatory requirements that may be
then in effect, operational difficulties, shipyard and other delays, government
and regulatory actions and other factors described in the Company's annual
report on Form 10-K and its most recent periodic reports and other documents
filed with the Securities and Exchange Commission, which are available free of
charge at the SEC's website at www.sec.gov or the company's website at
www.herculesoffshore.com. The Company cautions you that forward-looking
statements are not guarantees of future performance and that actual results or
developments may differ materially from those projected or implied in these
statements.
Item 8.01 Other Events
Recent Cash Receipt
On November 27, 2012, the Company received a cash payment of $10.0 million from
Angola Drilling Company Ltd., a customer in Angola (the "Customer"). This amount
represents an installment payment on the balance owed to the Company from the
Customer pursuant to a drilling contract for the Hercules 185 (the "Contract")
for services provided from July 2009 through January 2011. The proceeds will be
recorded as revenue in our International Offshore segment during the fourth
quarter 2012. After the application of this payment, the Customer owes the
Company $44.4 million under the Contract.
Future Collectability
While the Company remains hopeful the Customer will fulfill its obligations
under the Contract, the collectability of the balance owed remains uncertain and
difficult to forecast. Accordingly, the Company does not believe this recent
payment has removed the uncertainty surrounding future collectability of the
outstanding balance. Consequently, at this time, the Company has not recognized
any of the $44.4 million remaining balance in the Company's financial
statements.
The amount owed to the Company remains undisputed by the Customer, and the
Company is continuing to vigorously pursue all commercial and legal means for
collection of the outstanding balance. If the Company receives any additional
payments from the Customer, the payments will be recorded as an increase to our
International Offshore segment's revenue.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit 99.1 Hercules Offshore Fleet Status Report
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