Atwood Oceanics Contract for Atwood Falcon

Atwood Oceanics, Inc.  ("Atwood") announced today that one of its subsidiaries has been awarded a drilling services contract by HP Billiton Petroleum Pty., Limited for the semisubmersible rig Atwood Falcon. This contract is for a term of 330 days and the work will be performed offshore Australia at a day rate of approximately $430,000 in direct continuation with the rig's contracted drilling programs.  As part of this contract, BHP Billiton retains the right to further extend the contract for two option periods of approximately 120 days each at the same day rate. Contract commencement is expected to occur in direct continuation of present operations.

Atwood Oceanics is a leading offshore drilling company engaged in the drilling and completion of exploration and development wells for the global oil and gas industry. The company currently owns 12 mobile offshore drilling units and is constructing three ultra-deepwater drillships. The company was founded in 1968 and is headquartered in Houston, Texas.   Atwood Oceanics, Inc. common stock is traded on the New York Stock Exchange under the symbol "ATW."