| FLEET STATUS REPORT |
OTC: PACDQ | |
| As of August 14, 2018 |
| Updates noted in bold |
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| Contract | ||||||||
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| Average Contract |
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| Contractual |
| Backlog Revenue |
| Availability/ |
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| Water Depth |
| Drilling Depth |
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| Dayrate |
| Per Day |
| Expected |
Rig Name |
| Delivery |
| (ft) |
| (ft) |
| Clients |
| Location |
| Start |
| Term |
| (US$000's) |
| (US$000's) |
| Availability |
Pacific Bora |
| 2010 |
| 10,000 |
| 37,500 |
| — |
| Ivory Coast |
| — |
| — |
| — |
| — |
| (1) |
Pacific Scirocco |
| 2011 |
| 12,000 |
| 40,000 |
| — |
| Las Palmas |
| — |
| — |
| — |
| — |
| Immediate |
Pacific Mistral |
| 2011 |
| 12,000 |
| 37,500 |
| — |
| Las Palmas |
| — |
| — |
| — |
| — |
| Immediate |
Pacific Santa Ana |
| 2011 |
| 12,000 |
| 40,000 |
| (2) |
| Las Palmas |
| mid-2019 |
| (2) |
| 280 |
| 283 |
| (2) |
Pacific Khamsin |
| 2013 |
| 12,000 |
| 40,000 |
| — |
| Las Palmas |
| — |
| — |
| — |
| — |
| (3) |
Pacific Sharav |
| 2014 |
| 12,000 |
| 40,000 |
| Chevron |
| USGoM |
| 27-Aug-2014 |
| 5 years |
| 550 |
| 604 |
| Sep-19 |
Pacific Meltem |
| 2014 |
| 12,000 |
| 40,000 |
| — |
| Las Palmas |
| — |
| — |
| — |
| — |
| (4) |
(1) | The Pacific Bora has been awarded a letter of intent from Eni S.p.A. for drilling services in Nigeria for one firm well with two option wells, with each well estimated at approximately 90 days of work, at a dayrate of $150,000 expected to commence in October 2018. |
(2) | The Pacific Santa Ana is currently idle in Las Palmas while actively seeking a contract for short-term work. Petronas has exercised its option to contract the Pacific Santa Ana for integrated services under Phase II of their plug and abandonment project in Mauritania expected to commence in mid-2019 with an estimated 360 days of work. |
(3) | The Pacific Khamsin has received a letter of award for drilling services in the U.S. Gulf of Mexico for two years of work at a dayrate of $160,000 expected to commence in early 2019. |
(4) | The Pacific Meltem has received a letter of award from the same party as the Pacific Khamsin for drilling services in the U.S. Gulf of Mexico for two years of work at a dayrate of $160,000 expected to commence in early 2019. |
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| Historical Actual |
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Period |
| 3Q2017 |
| 4Q2017 |
| 1Q2018 |
| 2Q2018 |
| 3Q2017 - 2Q2018 Average |
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Operating Fleet Rig Related Average Revenue Efficiency |
| 99.9% |
| 99.6% |
| 97.6% |
| 98.7% (5) |
| 98.9% (5) |
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(5) | Including unpaid downtime related to integrated services on the Pacific Santa Ana, our average revenue efficiency was 97.2% for 2Q2018 and 97.9% for the period from 3Q2017 to 2Q2018. |
Page 1 of 3
|
FLEET STATUS REPORT |
OTC: PACDQ | |
| As of August 14, 2018 |
DEFINITIONS & DISCLAIMERS
Dayrate Definition: The dayrates reflected in this Fleet Status Report are the operating dayrates charged to clients, which may include estimated contractual adjustments for changes in operating costs and/or reimbursable cost adjustments for ongoing expenses such as crew, catering, insurance and taxes. The dayrates, however, do not include certain types of non-recurring revenues such as lump sum mobilization payments, revenues earned during mobilizations, revenues associated with contract preparation and other non-recurring reimbursable items such as mobilizations and capital enhancements. Routine and non-routine downtime may reduce the actual revenues recognized during the contract term.
Backlog Definition: Includes firm commitments only, which are represented by signed drilling contracts. We calculate our contract backlog by multiplying the contractual dayrate by the number of days committed under the contracts (excluding options to extend), assuming full utilization, and also include mobilization fees, upgrade reimbursements and other revenue sources, such as the standby rate during upgrades, as stipulated in the applicable contracts. For a well-by-well contract, we calculate the contract backlog by estimating the expected number of remaining days to drill the firm wells committed.
From time to time, we are awarded letters of intent or receive letters of award for our drillships. Certain of those letters of intent and letters of award remain subject to negotiation and execution of definitive contracts and other customary conditions. No assurance can be given as to the terms of any such arrangement, such as the applicable duration or dayrate, until a definitive contract is entered into by the parties, if we are able to finalize a contract at all.
Revenue Efficiency Definition: Actual contractual dayrate revenue (excludes mobilization fees, upgrade reimbursements and other revenue sources) divided by the maximum amount of total contractual dayrate revenue that could have been earned during such period.
Forward Looking Statements: Certain statements and information contained in this Fleet Status Report, constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are generally identifiable by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “our ability to,” “may,” “plan,” “potential,” “predict,” “project,” “projected,” “should,” “will,” “would,” or other similar words, which are generally not historical in nature. The forward-looking statements speak only as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
Our forward-looking statements express our current expectations or forecasts of possible future results or events, including our future financial and operational performance and cash balances; revenue efficiency levels; market outlook; forecasts of trends; future client contract opportunities; contract dayrates; our business strategies and plans and objectives of management; estimated duration of client contracts; backlog; expected capital expenditures; projected costs and savings; the potential impact of our Chapter 11 proceedings on our future operations and ability to finance our business; our ability to complete the restructuring transactions contemplated by our plan of reorganization; projected costs and expenses in connection with our plan of reorganization; and our ability to emerge from our Chapter 11 proceedings and continue as a going concern.
Page 2 of 3
Although we believe that the assumptions and expectations reflected in our forward-looking statements are reasonable and made in good faith, these statements are not guarantees, and actual future results may differ materially due to a variety of factors. These statements are subject to a number of risks and uncertainties, and are based on a number of judgments and assumptions as of the date such statements are made about future events, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated, projected or implied by us in such statements due to a variety of factors, including if one or more of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect.
Important factors that could cause actual results to differ materially from our expectations include: the global oil and gas market and its impact on demand for our services; the offshore drilling market, including reduced capital expenditures by our clients; changes in worldwide oil and gas supply and demand; rig availability and supply and demand for high-specification drillships and other drilling rigs competing with our fleet; costs related to stacking of rigs; our ability to enter into and negotiate favorable terms for new drilling contracts or extensions; our ability to successfully negotiate and consummate definitive contracts and satisfy other customary conditions with respect to letters of intent and letters of award that we receive for our drillships; our substantial level of indebtedness; possible cancellation, renegotiation, termination or suspension of drilling contracts as a result of mechanical difficulties, performance, market changes or other reasons; our ability to continue as a going concern in the long term; our ability to obtain Bankruptcy Court approval with respect to motions or other requests made to the Bankruptcy Court in our Chapter 11 proceedings, including maintaining strategic control as debtor-in-possession; our ability to confirm and consummate our plan of reorganization; the effects of our Chapter 11 proceedings on our operations and agreements, including our relationships with employees, regulatory authorities, clients, suppliers, banks and other financing sources, insurance companies and other third parties; the effects of our Chapter 11 proceedings on our Company and on the interests of various constituents, including holders of our common shares and debt instruments; Bankruptcy Court rulings in our Chapter 11 proceedings as well as the outcome of all other pending litigation and arbitration matters and the outcome of our Chapter 11 proceedings in general; the length of time that we will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the proceedings; risks associated with third-party motions in our Chapter 11 proceedings, which may interfere with our ability to confirm and consummate our plan of reorganization and restructuring generally; increased advisory costs to complete our plan of reorganization and our ability to execute our business and restructuring plan generally; the risk that our plan of reorganization may not be accepted or confirmed, in which case there can be no assurance that our Chapter 11 proceedings will continue rather than be converted to Chapter 7 liquidation cases or that any alternative plan of reorganization would be on terms as favorable to holders of claims and interests as the terms of our Plan; our ability to access adequate debtor-in-possession financing or use cash collateral; the potential adverse effects of our Chapter 11 proceedings on our liquidity, results of operations, or business prospects; increased administrative and legal costs related to our Chapter 11 proceedings and other litigation and the inherent risks involved in a bankruptcy process; the cost, availability and access to capital and financial markets, including the ability to secure new financing after emerging from our Chapter 11 proceedings; and the other risk factors described in our 2017 Annual Report on Form 20-F and our Current Reports on Form 6-K. These documents are available through our website at www.pacificdrilling.com or through the SEC’s website at www.sec.gov.
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