Wednesday, May 12th, 2010 - Vantage Drilling
HOUSTON, TX Vantage Drilling Company ("Vantage") (NYSE Amex: VTG.U) (NYSE Amex: VTG) (NYSE Amex: VTG.WS) reports a net income of $6.0 million or $0.03 per diluted share for the three months ended March 31, 2010 as compared to net income of $2.4 million or $0.03 per diluted share for the three months ended March 31, 2009.

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs operating, and an ultra deepwater drillship, the Platinum Explorer, currently under development. Vantage is also providing management services to an affiliate for two other ultra-deepwater drillships and to Sea Dragon for two ultra-deepwater semi-submersibles.

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

March 31,

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

2010 2009

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

Revenue

Contract drilling services $ 39,356 $ 9,787

Management fees 4,437 4,142

Reimbursables 14,457 367

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

Total revenue 58,250 14,296

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

Operating costs and expenses

Operating costs, excluding impairment and termination

costs 30,659 5,640

General and administrative 4,475 3,436

Depreciation 7,477 1,656

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

Total operating expenses 42,611 10,732

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

Income (loss) from operations 15,639 3,564

Other income (expense)

Interest income 12 8

Interest expense (7,985) (748)

Other income 612 86

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

Total other income (expense) (7,361) (654)

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

Income before income taxes 8,278 2,910

Income tax provision 2,315 552

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

Net income $ 5,963 $ 2,358

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

Earnings per share

Basic $ 0.03 $ 0.03

Diluted $ 0.03 $ 0.03


Vantage Drilling Company

Consolidated Balance Sheet

(In thousands, except par value information)


March 31, December 31,

2010 2009

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

ASSETS (Unaudited)

Current assets

Cash and cash equivalents $ 30,394 $ 15,992

Restricted cash 38,051 28,863

Trade receivables 39,742 17,536

Inventory 11,802 10,789

Prepaid expenses and other current assets 11,343 8,040

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

Total current assets 131,332 81,220

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

Property and Equipment

Property and equipment 911,476 899,541

Accumulated depreciation (18,806) (11,329)

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

Property and equipment, net 892,670 888,212

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

Other Assets

Investment in joint venture 122,265 120,306

Other assets 28,722 29,441

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

Total other assets 150,987 149,747

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

Total assets $ 1,174,989 $ 1,119,179

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



LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities

Accounts payable $ 17,849 $ 15,931

Accrued liabilities 21,692 14,285

Short-term debt 3,434 17,827

Current maturities of long-term debt 16,000 16,000

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

Total current liabilities 58,975 64,043

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

Long-term debt, net of discount of $3,728 and

$4,021 369,939 378,078

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; 236,009 and 187,277 shares

issued and outstanding 236 187

Additional paid-in capital 777,796 714,486

Accumulated deficit (31,154) (37,117)

Accumulated other comprehensive loss (803) (498)

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

Total shareholders' equity 746,075 677,058

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

Total liabilities and shareholders' equity $ 1,174,989 $ 1,119,179

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


Vantage Drilling Company

Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)



Three Months Ended

March 31,

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

2010 2009

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

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) $ 5,963 $ 2,358

Adjustments to reconcile net income to net cash

provided by (used in) operating activities:

Depreciation expense 7,477 1,656

Amortization of debt financing costs 976 205

Share-based compensation expense 1,526 1,142

Accretion of long-term debt 1,217 -

Amortization of senior notes discount 293 -

Deferred income tax benefit - -

Changes in operating assets and liabilities:

Restricted cash (9,188) (212)

Trade receivables (22,205) (9,686)

Inventory (1,013) (3,016)

Prepaid expenses and other current assets (3,304) 434

Other assets (198) (45)

Accounts payable 1,919 1,983

Accrued liabilities 7,245 4,049

Short-term debt 904 -

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

Net cash used in operating activities (8,388) (1,132)

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

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of assets - -

Additions to property and equipment (11,934) (17,685)

Investment in joint venture (1,959) -

Deferred acquisition costs - -

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

Net cash used in investing activities (13,893) (17,685)

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

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings under credit agreements 10,821

Repayment of long-term debt (9,649) (465)

Proceeds from issuance of ordinary shares in public

offering, net 47,688 -

Repayment of short-term debt (1,297) -

Debt issuance costs (59) -

Proceeds from notes payable-shareholders - 4,000

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

Net cash provided by financing activities 36,683 14,356

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

Net increase (decrease) in cash and cash equivalents 14,402 (4,461)

Cash and cash equivalents -- beginning of period 15,992 16,557

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

Cash and cash equivalents -- end of period $ 30,394 $ 12,096 ##

Contact Profile

Public & Investor Relations Contact: Paul A. Bragg, Chairman & Chief Executive Officer

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

Keywords

Vantage Drilling, Cayman Islands, deepwater drillship

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