EXHIBIT EX. - 99.1

                      ATWOOD ANNOUNCES CONTRACT SUSPENSION
                      PLUS A NEW CONTRACT FOR ATWOOD HUNTER


Houston, Texas
15 August 2007


FOR IMMEDIATE RELEASE

     Atwood Oceanics,  Inc. (NYSE:  ATW),  announced today that immediately upon
the ATWOOD HUNTER  completing its current  drilling  program for Woodside Energy
Ltd.  ("Woodside")  offshore  Libya  (estimated the end of August 2007) that the
Woodside  contract  will be  suspended  and the rig  moved to Egypt to  commence
working  under a  contract  for  Burullus  Gas Co.  ("Burullus").  The  Burullus
contract is expected to take 140 days to complete  (including  mobilization  and
demobilization to the point of origin in the Mediterranean Sea) with dayrates of
$320,000  for the  first  90  days,  $355,000  the  next 35  days  and  $410,000
thereafter (expected to be 15 days).  Immediately upon completion of its work in
Egypt,  the Woodside  contract  will be  reinstated  with the rig expected to be
moved to  Mauritania  at a dayrate of $240,000.  Under the  contract  suspension
agreement with Woodside,  the remaining  Woodside  contract  commitment  will be
reduced by a period equal to 50% of the days that the ATWOOD  HUNTER works under
the  Burullus  contract  up to a  maximum  of 70  days.  Prior  to the  contract
suspension,  the Woodside  contract term was  anticipated to be completed in May
2008.  Assuming  the rig works  for  Burullus  for the  expected  140 days,  the
Woodside  contract  commitment  will be  extended  70 days to August  2008.  The
Woodside  contract  provides  for two (2) six month  options  at day rates to be
mutually  agreed.  An  agreement  for Woodside to use the rig beyond its current
commitment must be executed by 15 December 2007.


     Statements  contained  in  this  report  with  respect  to the  future  are
forward-looking  statements.  These statements reflect  management's  reasonable
judgment with respect to future events. Forward-looking statements involve risks
and uncertainties. Actual results could differ materially from those anticipated
as a result of various factors  including;  the Company's  dependence on the oil
and gas industry;  the risks involved the  construction  of a rig;  competition;
operating  risks;  risks involved in foreign  operations;  risks associated with
possible  disruption in operations  due to terrorism;  risks  associated  with a
possible  disruption  in  operations  due to a war with Iraq;  and  governmental
regulations and environmental  matters. A list of additional risk factors can be
found in the Company's  annual report on Form 10-K for the year ended  September
30, 2006, filed with the Securities and Exchange Commission.





                                                        Contact:  Jim Holland
                                                                 281-749-7804