Hercules

Houston-based Hercules Offshore Inc., which emerged from Chapter 11 in late 2015, has formed a special committee to explore strategic alternatives, which may include a sale or merger. The offshore driller contractor, which operates a fleet of 27 jackups, including one rig nearing completion, and 19 liftboats, completed voluntary restructuring in early November (see Daily GPI,Nov. 9, 2015). The special committee, composed of all the independent members of the board, was not formed in response to any proposals, management said. It would be authorized, however, “to explore, review, and evaluate any potential strategic transaction” or any other alternatives, including a sale, merger or share exchange. No more details are being provided until a definitive agreement, if any, is completed. Hercules has about $514 million of cash, excluding $200 million in escrow for the newbuild Hercules Highlander nearing completion. It also has $450 million of total debt outstanding and 20 million shares of common stock outstanding.

Hercules Offshore Inc. last week emerged from Chapter 11 bankruptcy protection, but the hard work continues after CEO John Rynd said activity in the U.S. Gulf of Mexico (GOM) was “lower today than at any time since the early days of the offshore drilling industry.”

More bankruptcies could be ahead for “challenged” offshore drillers following the restructuring plan filed by Hercules Offshore Inc. last week, Fitch Ratings analysts said.

Houston-based jack-up contractor Hercules Offshore Inc., whose fleet is concentrated in the shallow waters of the Gulf of Mexico (GOM), is handing over ownership to creditors through a financial restructuring that would lead to a Chapter 11 filing in early July.

Houston-based jack-up contractor Hercules Offshore Inc., whose fleet is concentrated in the shallow waters of the Gulf of Mexico, is handing over ownership to creditors through a financial restructuring that would lead to a Chapter 11 filing in early July.

Walter Oil & Gashas completed the first phase of plugging a natural gas well in the Gulf of Mexico that blew out in July, according to theInterior Department’sBureau of Safety and Environmental Enforcement(BSEE). The well blowout partially destroyed a Hercules Inc. rig, but as responders were working on ways to prevent releases, the well naturally clogged with sand (seeDaily GPI,July 30). All of the debris from the original well had been removed as of Friday (Sept. 6), and no gas has been detected, BSEE said. Regulators said the original well would be reentered at a later date to set deeper, permanent plugs.