Stone Energy has terminated an existing long-term deepwater rig commitment with Ensco for a total consideration of US$20 million.
The agreement includes approximately $5 million that was a deposit previously provided to Ensco pursuant to the drilling services contract.
Further, Stone agreed to provide Ensco the opportunity to perform certain drilling services commenced before31 December 2019, and Stone paid Ensco a $5 million deposit to be used as a credit against future drilling activities initiated before 31 March 2017, subject to extension in certain circumstances. The ENSCO 8503 deepwater rig contract was at a day rate of $341,000 and was scheduled to expire in August 2017.
"The termination of the Ensco contract eliminates a long term obligation, which provides Stone with additional financial flexibility,” David Welch, Stone chairman, president, and CEO said.
Stone Energy has terminated an existing long-term deepwater rig commitment with Ensco for a total consideration of US$20 million.
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