Statements contained in the Rig Contract Status Report regarding the Company's estimated rig availability, contract duration, future rig rates and cost adjustments, customers or contract status (including letters of intent) are forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include references to future rig rates, cost adjustments, utilization, rig enhancement projections, shipyard construction or work completion, and other contract or letter of intent commitments, including new rig commitments, the period of time and number of rigs that will be in a shipyard for repairs, maintenance, enhancement or construction, scheduled delivery dates for new rigs, and scheduled commencement dates for new contracts and rig relocations. Numerous factors could cause actual results to differ materially from those in the forward-looking statements, including: (i) the merger transaction, described in the Company's proxy statement filed with the Securities Exchange Commission (SEC) on November 20, 2009, pursuant to which the Company would become an indirect subsidiary of a newly formed English public limited company named "Ensco International plc" (Ensco UK), may not be approved by our stockholders, (ii) our Board may choose to defer or abandon the merger at any time, (iii) changes in foreign or domestic laws, including tax laws, that could effectively preclude us from completing the merger or reduce or eliminate the benefits we expect to achieve from the merger and the corresponding reorganization of the Company's corporate structure, (iv) negative publicity resulting from the merger having an adverse effect on our business, (v) an SEC stop order or other action or any other decree, order or injunction preventing us from holding the special meeting or completing the merger, (vi) an inability to satisfy all of the conditions to closing set forth in the merger agreement, (vii) an inability to realize expected benefits from the merger or the occurrence of difficulties in connection with the merger, (viii) costs related to the merger, which could be greater than expected, (ix) industry conditions and competition, including changes in rig supply and demand or new technology, (x) risks associated with the global economy and its impact on capital markets and liquidity, (xi) prices of oil and natural gas, and their impact upon future levels of drilling activity and expenditures, (xii) further declines in rig activity, which may cause us to idle or stack additional rigs, (xiii) excess rig availability or supply resulting from delivery of new drilling rigs, (xiv) heavy concentration of our rig fleet in premium jackups, (xv) cyclical nature of the industry, (xvi) worldwide expenditures for oil and natural gas drilling, (xvii) the ultimate resolution of the ENSCO 69 situation in general and the potential return of the rig or package policy political risk insurance recovery in particular, (xviii) changes in the timing of revenue recognition resulting from the deferral of certain revenues for mobilization of our drilling rigs, time waiting on weather or time in shipyards, which are recognized over the contract term upon commencement of drilling operations, (xix) operational risks, including excessive unplanned downtime and hazards created by severe storms and hurricanes, (xx) risks associated with offshore rig operations or rig relocations in general, and in foreign jurisdictions in particular, (xxi) renegotiation, nullification, cancellation or breach of contracts or letters of intent with customers or other parties, including failure to negotiate definitive contracts following announcements or receipt of letters of intent, (xxii) inability to collect receivables, (xxiii) changes in the dates new contracts actually commence, (xxiv) changes in the dates our rigs will enter a shipyard, be delivered, return to service or enter service, (xxv) risks inherent to domestic and foreign shipyard rig construction, repair or enhancement, including risks associated with concentration of our ENSCO 8500 Series® rig construction contracts in a single foreign shipyard, unexpected delays in equipment delivery and engineering or design issues following shipyard delivery, (xxvi) availability of transport vessels to relocate rigs, (xxvii) environmental or other liabilities, risks or losses, whether related to hurricane damage, losses or liabilities (including wreckage or debris removal) in the Gulf of Mexico or otherwise, that may arise in the future which are not covered by insurance or indemnity in whole or in part, (xxviii) limited availability or high cost of insurance coverage for certain perils such as hurricanes in the Gulf of Mexico or associated removal of wreckage or debris, (xxix) self-imposed or regulatory limitations on drilling locations in the Gulf of Mexico during hurricane season, (xxx) impact of current and future government laws and regulation affecting the oil and gas industry in general and our operations in particular, including taxation, as well as repeal or modification of same, (xxxi) our ability to attract and retain skilled personnel, (xxxii) governmental action and political and economic uncertainties, including expropriation, nationalization, confiscation or deprivation of our assets, (xxxiii) terrorism or military action impacting our operations, assets or financial performance, (xxxiv) outcome of litigation, legal proceedings, investigations or insurance or other claims, (xxxv) adverse changes in foreign currency exchange rates, including their impact on the fair value measurement of our derivative financial instruments, (xxxvi) potential long-lived asset or goodwill impairments, (xxxvii) potential reduction in fair value of our auction rate securities, and (xxxviii) other risks as described from time to time as Risk Factors and otherwise in the Company's SEC filings. Copies of such SEC filings may be obtained at no charge by contacting our Investor Relations Department at 214-397-3045 or by referring to the Investor Relations section of our website at www.enscointernational.com. All information in this report is as of the date posted. The Company undertakes no duty to update any forward-looking statement, to conform the statement to actual results, or reflect changes in the Company's expectations. Moreover, the United States Congress, the U.S. Internal Revenue Service, the United Kingdom Parliament or HM Revenue & Customs may attempt to enact new statutory or regulatory provisions that could adversely affect Ensco UK's status as a non-U.S. corporation or otherwise adversely affect Ensco UK's anticipated global tax position following the merger and the subsequent actions. Retroactive statutory or regulatory actions have occurred in the past, and there can be no assurance that any such provisions, if enacted or promulgated, would not have retroactive application to Ensco UK, the merger or the subsequent actions. The factors identified above are believed to be important factors (but not necessarily all of the important factors) that could cause actual results to differ materially from those expressed in any forward-looking statement made by us. Other factors not discussed herein could also have material adverse effects on us. All forward-looking statements included in this Rig Contract Status Report are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to update any forward-looking statement (or its associated cautionary language), whether as a result of new information or future events.
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