Thursday, November 10th, 2011 - Vantage

HOUSTON, TX--(Marketwire) - Vantage Drilling Company ("Vantage") (NYSE Amex: VTG) reports a net loss of $11.9 million or ($0.04) per diluted share for the three months ended September 30, 2011 as compared to a net loss of $5.8 million or ($0.02) per share excluding $27.8 million of charges in the prior year period relating to the acquisition of the Platinum Explorer and refinancing of certain debt. The three months ended September 30, 2010, including the acquisition and refinancing charges was a loss of $33.6 million or ($0.12) per diluted.

For the nine months ended September 30, 2011, Vantage reports a net loss of $45.4 million or ($0.16) per share excluding approximately $25.2 million of charges for refinancing debt as compared to a loss of $6.8 million or ($.03) per share in the prior year period, excluding approximately $27.8 million of acquisition and refinancing charges. Including the refinancing charges for the nine months ended September 30, 2011, Vantage reported a net loss $70.6 million or ($0.24) per share as compared to a net loss of $34.6 million or $(0.14) per share for the nine months ended September 30, 2010, including the acquisition and refinancing charges.

Paul Bragg, Chairman and Chief Executive Officer, commented, "Our fleet performed very well during the quarter as we achieved nearly 100% productive time operating our jackup fleet and the Platinum Explorer operated at approximately 97% productive time. We are also pleased to announce that during the quarter, we also completed the customer-reimbursed upgrades on the Topaz Driller and have since commenced operations in Malaysia in early October."

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs and the ultra-deepwater drillship, the Platinum Explorer, as well as an additional ultra-deepwater drillship, the Tungsten Explorer, now under construction. Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned and managed drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements.

                                                                           

                                                                           

                          Vantage Drilling Company                          

                    Consolidated Statement of Operations                   

                  (In thousands, except per share amounts)                 

                                (Unaudited)                                

                                                                            

                               Three Months Ended       Nine Months Ended  

                                  September 30,           September 30,    

                             ----------------------  ----------------------

                                2011        2010        2011        2010   

                             ----------  ----------  ----------  ----------

Revenues                                                                    

  Contract drilling services $   89,882  $   44,864  $  274,402  $  132,632

  Management fees                 3,285       4,516      10,499      13,391

  Reimbursables                  25,367      17,527      79,148      47,488

                             ----------  ----------  ----------  ----------

    Total revenues              118,534      66,907     364,049     193,511

                             ----------  ----------  ----------  ----------

Operating costs and expenses                                                

  Operating costs                69,610      41,582     212,224     112,946

  General and administrative      6,219       6,294      20,469      15,703

  Depreciation                   15,988       8,768      48,126      24,611

                             ----------  ----------  ----------  ----------

    Total operating expenses     91,817      56,644     280,819     153,260

                             ----------  ----------  ----------  ----------

Income from operations           26,717      10,263      83,230      40,251

Other income (expense)                                                     

  Interest income                     7         381          68         396

  Interest expense and                                                      

   financing charges            (37,074)    (14,292)   (117,966)    (35,608)

  Loss on debt                                                             

   extinguishment                     -     (24,006)    (25,196)    (24,006)

  Loss on acquisition of                                                   

   subsidiary                         -      (3,780)          -      (3,780)

  Other income                      455         618       1,913       1,568

                             ----------  ----------  ----------  ----------

    Total other expense         (36,612)    (41,079)   (141,181)    (61,430)

                             ----------  ----------  ----------  ----------

Loss before income taxes         (9,895)    (30,816)    (57,951)    (21,179)

Income tax provision              1,986       2,765      12,654      13,435

                             ----------  ----------  ----------  ----------

Net loss                     $  (11,881) $  (33,581) $  (70,605) $  (34,614)

                             ==========  ==========  ==========  ==========

                                                                           

Loss per share                                                             

  Basic                      $    (0.04) $    (0.12) $    (0.24) $    (0.14)

  Diluted                    $    (0.04) $    (0.12) $    (0.24) $    (0.14)

                                                                           

                                                                            

                                                                           

                          Vantage Drilling Company                         

                         Consolidated Balance Sheet                         

                (In thousands, except par value information)               

                                                                           

                                               September 30,   December 31,

                                                    2011           2010    

                                               -------------  -------------

                                                (Unaudited)                

                    ASSETS                                                  

Current assets                                                             

  Cash and cash equivalents                    $      37,188  $     120,443

  Restricted cash                                      6,761         29,004

  Trade receivables                                  118,823         50,190

  Inventory                                           22,326         19,760

  Prepaid expenses and other current assets            5,079         11,472

                                               -------------  -------------

    Total current assets                             190,177        230,869

                                               -------------  -------------

Property and equipment                                                      

  Property and equipment                           1,892,973      1,762,844

  Accumulated depreciation                           (92,640)       (44,712)

                                               -------------  -------------

    Property and equipment, net                    1,800,333      1,718,132

                                               -------------  -------------

Other assets                                                               

  Other assets                                        57,652         54,193

                                               -------------  -------------

    Total other assets                                57,652         54,193

                                               -------------  -------------

Total assets                                   $   2,048,162  $   2,003,194

                                               =============  =============

                                                                            

     LIABILITIES AND SHAREHOLDERS' EQUITY                                  

Current liabilities                                                        

  Accounts payable                             $      37,104  $      32,332

  Accrued liabilities                                 45,795         75,159

  Short-term debt                                        857          8,574

                                               -------------  -------------

    Total current liabilities                         83,756        116,065

                                               -------------  -------------

Long-term debt, net of discount of $40,530 and                             

 $63,654                                           1,244,470      1,103,480

Other long-term liabilities                           16,346         13,498

Commitments and contingencies                              -              -

Shareholders' equity                                                       

  Preferred shares, $0.001 par value, 10,000                               

   shares authorized; none issued or                                       

   outstanding                                             -              -

  Ordinary shares, $0.001 par value, 400,000                               

   shares authorized; 290,706 and 289,713                                  

   shares issued and outstanding                         291            290

  Additional paid-in capital                         858,600        854,557

  Accumulated deficit                               (155,301)       (84,696)

                                               -------------  -------------

    Total shareholders' equity                       703,590        770,151

                                               -------------  -------------

Total liabilities and shareholders' equity     $   2,048,162  $   2,003,194

                                               =============  =============

                                                                            

                                                                           

                                                                           

                          Vantage Drilling Company                         

                    Consolidated Statement of Cash Flows                   

                               (In thousands)                              

                                (Unaudited)                                 

                                                    Nine Months Ended      

                                                       September 30,       

                                               ----------------------------

                                                    2011           2010    

                                               -------------  -------------

CASH FLOWS FROM OPERATING ACTIVITIES                                       

Net loss                                       $     (70,605) $     (34,614)

Adjustments to reconcile net income to net                                 

 cash provided by (used in) operating                                      

 activities:                                                                

  Depreciation expense                                48,126         24,611

  Amortization of debt financing costs                 6,269          3,515

  Non-cash loss on debt extinguishment                 3,532         12,280

  Non-cash loss recognized related to                                      

   acquisition of subsidiary                               -          3,780

  Share-based compensation expense                     4,044          4,594

  Accretion of long-term debt                          2,582          3,965

  Amortization of debt discount                        7,374          2,682

  Deferred income tax expense                            123          1,650

  Gain on disposal of assets                             (86)             -

Changes in operating assets and liabilities:                               

  Restricted cash                                     22,243          1,944

  Trade receivables                                  (68,633)       (38,333)

  Inventory            &n

Contact Profile

Public & Investor Relations: Paul A. Bragg Chairman & Chief Executive Officer Vantage Drilling Company

P: (281) 404-4700
W: www.vantagedrilling.com

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