Vantage Drilling 8-K Vantage Drilling Company Reports Fourth Quarter 2009 Results

Exhibit 99.1

Vantage Drilling Company Reports Fourth Quarter 2009 Results

HOUSTON, TX—(MARKET WIRE)—March 16, 2010 — Vantage Drilling Company (“Vantage”) (AMEX: VTG-U) (AMEX:VTG) (AMEX: VTG-WS) reports a net loss of ($4.3) million or ($0.02) per diluted share for the three months ended December 31, 2009 as compared to net loss of ($43.5) million or ($0.57) per diluted share for the three months ended December 31, 2008. Net income for the fiscal year ended December 31, 2009 was $8.8 million or $0.07 per share as compared to a net loss of ($47.4) million or ($0.78) per share for the year ended December 31, 2008.

Paul Bragg, President and Chief Executive Officer, commented, “The Company took giant strides in 2009 and thereafter, as we deployed all four of our new jackup rigs. Our first deepwater rig, Platinum Explorer, is on track for on-time delivery in November 2010.”

Early stage risks have been greatly diminished with the completion of jackup construction, financing and contracting. Our operational and safety performance have also been exceptional.

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs operating, and an ultra deepwater drillship, the Platinum Explorer, currently under development. Vantage is also providing management services to an affiliate for two other ultra-deepwater drillships and to Sea Dragon for two ultra-deepwater semi-submersibles.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company’s filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements.

Contact:

Public & Investor Relations Contact:

Paul A. Bragg

Chairman & Chief Executive Officer

Vantage Drilling Company

(281) 404-4700

Vantage Drilling Company

Consolidated Statement of Operations

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended December 31,
	2009			2008
Revenues
Contract drilling services	$	22,982		$	—
Management fees		3,701			825
Reimbursables		11,875			88
Total revenues		38,558			913
Operating costs and expenses
Operating costs, excluding impairment and termination costs		30,678			3,123
General and administrative		4,550			3,470
Depreciation		4,295			78
Impairment and termination costs		—			38,286
Total operating expenses		39,523			44,957
Income (loss) from operations		(965	)		(44,044	)
Other income (expense)
Interest income		10			6
Interest expense		(4,174	)		(56	)
Other income		293			86
Total other income (expense)		(3,871	)		36
Income (loss) before income taxes		(4,836	)		(44,008	)
Income tax provision (benefit)		(562	)		(540	)
Net income (loss)	$	(4,274	)	$	(43,468	)
Earnings per share
Basic	$	(0.02	)	$	(0.57	)
Diluted	$	(0.02	)	$	(0.57	)

Vantage Drilling Company

Consolidated Statement of Operations

(In thousands, except per share amounts)

	Year Ended December 31,
	2009			2008			2007
Revenues
Contract drilling services	$	69,919		$	—		$	—
Management fees		18,830			825			—
Reimbursables		22,744			88			—
Total revenues		111,493			913			—
Operating costs and expenses
Operating costs, excluding impairment and termination costs		66,228			5,365			—
General and administrative		15,690			9,334			937
Depreciation		11,218			101			10
Impairment and termination costs		—			38,286			—
Total operating expenses		93,136			53,086			947
Income (loss) from operations		18,357			(52,173	)		(947	)
Other income (expense)
Interest income		23			4,095			7,699
Interest expense		(8,178	)		(56	)		—
Other income		609			86			—
Total other income (expense)		(7,546	)		4,125			7,699
Income (loss) before income taxes		10,811			(48,048	)		6,752
Income tax provision (benefit)		1,972			(670	)		2,299
Net income (loss)	$	8,839		$	(47,378	)	$	4,453
Earnings per share
Basic	$	0.07		$	(0.78	)	$	0.16
Diluted	$	0.07		$	(0.78	)	$	0.14

Vantage Drilling Company

Consolidated Balance Sheet

(In thousands, except par value information)

	December 31,
	2009			2008
ASSETS
Current assets
Cash and cash equivalents	$	15,992		$	16,557
Restricted cash		28,863			1,700
Trade receivables		17,536			3,186
Inventory		10,789			—
Prepaid expenses and other current assets		8,040			2,077
Total current assets		81,220			23,520
Property and Equipment
Property and equipment		899,541			631,008
Accumulated depreciation		(11,329	)		(112	)
Property and equipment, net		888,212			630,896
Other Assets
Investment in joint venture		120,306			—
Other assets		29,441			10,867
Total other assets		149,747			10,867
Total assets	$	1,119,179		$	665,283
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	15,931		$	3,827
Accrued liabilities		14,285			14,766
Short-term debt		17,827			11,239
Current maturities of long-term debt		16,000			6,000
Total current liabilities		64,043			35,832
Long–term debt, net of discount of $4,021		378,078			133,000
Commitments and contingencies		—			—
Shareholders’ equity
Preferred shares, $0.001 par value, 10,000 shares authorized; none issued or outstanding		—			—
Ordinary shares, $0.001 par value, 400,000 shares authorized; 187,277 and 75,708 shares issued and outstanding		187			76
Additional paid-in capital		714,486			542,331
Accumulated deficit		(37,117	)		(45,956	)
Accumulated other comprehensive loss		(498	)		—
Total shareholders’ equity		677,058			496,451
Total liabilities and shareholders’ equity	$	1,119,179		$	665,283

Vantage Drilling Company

Consolidated Statement of Cash Flows

(In thousands)

	Year Ended December 31,
	2009			2008			2007
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	8,839		$	(47,378	)	$	4,453
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation expense		11,218			101			10
Amortization of debt financing costs		1,486			513			—
Share-based compensation expense		5,030			2,420			—
Accretion of long-term debt		1,638			—			—
Amortization of senior notes discount		29			—			—
Deferred income tax benefit		746			(2,059	)		(311	)
Write-off of asset value, net		—			28,286			—
Changes in operating assets and liabilities:
Restricted cash		(27,163	)		(1,700	)		—
Trade receivables		(14,350	)		(3,277	)		—
Inventory		(10,789	)		—			—
Prepaid expenses and other current assets		(5,963	)		(1,618	)		93
Other assets		(406	)		—			—
Accounts payable		12,104			3,765			62
Accrued liabilities		9,021			13,877			889
Short-term debt		4,942			1,240			—
Net cash used in operating activities		(3,618	)		(5,830	)		5,196
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of assets		—			(213,397	)		—
Additions to property and equipment		(337,444	)		(170,775	)		(122	)
Investment in joint venture		(157,404	)		—			—
Deferred acquisition costs		—			—			(757	)
Restricted cash held in trust account		—			273,109			(273,109	)
Net cash used in investing activities		(494,848	)		(111,063	)		(273,988	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under credit agreements		141,821			139,000			—

Proceeds from the issuance of senior secured notes, net of discount of $4,021		130,950			—			—
Repayment of long-term debt		(19,360	)		—			—
Proceeds from issuance of ordinary shares in private placement, net		24,953			—			—
Proceeds from issuance of ordinary shares in public offering, net		80,291			—			—
Proceeds from warrant exercise in connection with joint venture		150,000			—			—
Proceeds from short-term notes payable-shareholders		4,000			—			—
Repayment of short-term debt		(2,354	)		—			—
Debt issuance costs		(12,400	)		(8,533	)		—
Advances from stockholders of OGIL		—			3,300			—
Repayments of advances from stockholders of OGIL		—			(3,300	)		—
Proceeds from issuance of ordinary shares and warrants in private placement		—			—			6,000
Proceeds from issuance of ordinary shares and warrants to public stockholders		—			—			255,930
Proceeds from deferred underwriters fee		—			—			8,280
Repayment of deferred underwriters fee		—			(8,280	)		—
Proceeds from notes payable-shareholders		—			10,000			86
Repayment of notes payable-shareholders		—			—			(275	)
Net cash provided by financing activities		497,901			132,187			270,021
Net increase in cash and cash equivalents		(565	)		15,294			1,229
Cash and cash equivalents—beginning of period		16,557			1,263			34
Cash and cash equivalents—end of period	$	15,992		$	16,557		$	1,263