Offshore staff

(US) - Oil and gas well drilling company Hercules Offshore Inc. has agreed to buy a rig from Aries Offshore Partners Ltd. for $20.1 million.

The company said it expects to close the purchase of the 150-ft independent leg jackup rig, built in 1979 by LeTourneau and coldstacked for the past six years, in February.

Hercules says it expects the rig's reactivation to take up to a year and to cost about $20 million.

"The acquisition ofRig 26 is consistent with our strategy of acquiring existing shallow water assets, and we are already in discussions with customers for possible contract opportunities for the unit outside the US Gulf of Mexico," said Randy Stilley, president and CEO.

01/31/06