Ensco Files 8K - Other Events
30 June 2016 - 6:47AM
Dow Jones News
ENSCO PLC (ESV) filed a Form 8K - Other Events - with the U.S
Securities and Exchange Commission on June 29, 2016.
Ensco plc has reached an agreement with the customer of ENSCO
8503 to settle the customer's remaining obligations under the
drilling services contract, which was scheduled to expire in August
2017, subject to certain conditions.
As part of this agreement, Ensco received total consideration of
$20 million, approximately $5 million of which was a deposit
previously provided to Ensco pursuant to the drilling services
contract. In addition, the customer agreed to make a $5 million
deposit that can be applied as a credit toward certain future
drilling services initiated by the customer in the Gulf of Mexico
on or before March 31, 2017. If these funds are not used by such
date, subject to certain exceptions, the customer forfeits such $5
million deposit.
Pursuant to the settlement, Ensco also retains the exclusive
right to perform offshore drilling services for the customer within
a predefined range of operating day rates in the Gulf of Mexico
through December 31, 2019.
Future aggregate revenue backlog forfeited as a result of this
agreement is approximately $150 million. As disclosed by the
customer in April 2016, the customer has been assessing
restructuring and financial alternatives. The accounting treatment
related to this agreement will be communicated as quarterly results
are reported.
Statements contained in this Form 8-K that are not historical
facts are forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements include statements
involving future offshore drilling services to be performed in the
Gulf of Mexico and the potential forfeiture of a customer deposit.
Such statements are subject to numerous risks, uncertainties and
assumptions, including with respect to risks associated with
applicable bankruptcy and other laws. In addition, you should also
carefully read and consider "Item 1A. Risk Factors" in Part I and
"Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations" in Part II of our most recent
annual report on Form 10-K, as updated in the Company's subsequent
quarterly reports on Form 10-Q, which are available on the SEC's
website at www.sec.gov or on the Investor Relations section of the
our website at www.enscoplc.com. Each forward-looking statement
speaks only as of the date of the particular statement, and we
undertake no obligation to publicly update or revise any
forward-looking statements, except as required by law.
The full text of this SEC filing can be retrieved at:
http://www.sec.gov/Archives/edgar/data/314808/000031480816000382/form8k_item801e8503settlem.htm
Any exhibits and associated documents for this SEC filing can be
retrieved at:
http://www.sec.gov/Archives/edgar/data/314808/000031480816000382/0000314808-16-000382-index.htm
Public companies must file a Form 8-K, or current report, with
the SEC generally within four days of any event that could
materially affect a company's financial position or the value of
its shares.
(END) Dow Jones Newswires
June 29, 2016 16:32 ET (20:32 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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