Friday, May 11th, 2012 - Vantage Drilling Company

HOUSTON, TX--(Marketwire - May 10, 2012) - Vantage Drilling Company ("Vantage") (NYSE Amex: VTG) reports a net loss of $1.2 million or ($0.00) per diluted share for the three months ended March 31, 2012 as compared to a net loss of $18.7 million or ($0.06) per diluted share for the three months ended March 31, 2011.

Paul Bragg, Chairman and Chief Executive Officer, commented, "We continued our strong operating performance during the quarter. And importantly, we have now completed the acquisition and delivery of our third drillship, Titanium Explorer, which is now en-route to the US Gulf of Mexico. We feel that we are in better position today than at any point in our history."

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 two ultra-deepwater drillships, the Platinum Explorer and the Titanium 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 March 31,

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

                                                    2012           2011    

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

Revenues                                                                   

  Contract drilling services                   $     104,998  $      86,754

  Management fees                                      2,722          3,966

  Reimbursables                                       24,129         33,911

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

    Total revenues                                   131,849        124,631

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

Operating costs and expenses                                               

  Operating costs                                     69,324         77,393

  General and administrative                           5,260          6,847

  Depreciation                                        16,572         16,112

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

    Total operating expenses                          91,156        100,352

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

Income from operations                                40,693         24,279

Other income (expense)                                                     

  Interest income                                         12             38

  Interest expense and other financing charges       (36,763)       (41,542)

  Other income                                           645          1,480

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

    Total other expense                              (36,106)       (40,024)

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

Income (loss) before income taxes                      4,587        (15,745)

Income tax provision                                   5,766          2,909

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

Net loss                                       $      (1,179) $     (18,654)

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

                                                                            

Loss per share                                                             

  Basic                                        $       (0.00) $       (0.06)

  Diluted                                      $       (0.00) $       (0.06)

                                                                           

                                                                           

                                                                           

                                                                            

                          Vantage Drilling Company                         

                         Consolidated Balance Sheet                        

                (In thousands, except par value information)               

                                                                           

                                                 March 31,     December 31,

                                                    2012           2011     

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

                                                (Unaudited)                

                    ASSETS                                                 

Current assets                                                              

  Cash and cash equivalents                    $      56,474  $     110,031

  Restricted cash                                      5,378          7,028

  Trade receivables                                  113,594        100,908

  Inventory                                           25,651         24,376

  Prepaid expenses and other current assets           17,358         16,909

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

    Total current assets                             218,455        259,252

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

Property and equipment                                                     

  Property and equipment                           1,920,029      1,913,596

  Accumulated depreciation                          (124,574)      (108,521)

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

    Property and equipment, net                    1,795,455      1,805,075

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

Other assets                                                               

  Other assets                                        55,671         58,173

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

    Total other assets                                55,671         58,173

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

Total assets                                   $   2,069,581  $   2,122,500

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

                                                                            

     LIABILITIES AND SHAREHOLDERS' EQUITY                                  

Current liabilities                                                        

  Accounts payable                             $      42,260  $      46,362

  Accrued liabilities                                 57,187        103,809

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

    Total current liabilities                         99,447        150,171

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

Long-term debt, net of discount of $36,635 and                             

 $38,572                                           1,248,365      1,246,428

Other long-term liabilities                           24,549         29,755

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; 291,527 and 291,241                                  

   shares issued and outstanding                         292            291

  Additional paid-in capital                         862,754        860,502

  Accumulated deficit                               (165,826)      (164,647)

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

    Total shareholders' equity                       697,220        696,146

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

Total liabilities and shareholders' equity     $   2,069,581  $   2,122,500

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

                                                                           

                                                                            

                                                                           

                                                                           

                          Vantage Drilling Company                         

                    Consolidated Statement of Cash Flows                   

                               (In thousands)                              

                                (Unaudited)                                 

                                                                           

                                               Three Months Ended March 31,

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

                                                    2012           2011    

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

CASH FLOWS FROM OPERATING ACTIVITIES                                       

Net loss                                       $      (1,179) $     (18,654)

Adjustments to reconcile net loss to net cash                              

 used in operating activities:                                             

  Depreciation expense                                16,572         16,112

  Amortization of debt financing costs                 2,374          1,868

  Share-based compensation expense                     2,253            914

  Accretion of long-term debt                              -          1,489

  Amortization of debt discount                        1,937          2,847

  Deferred income tax expense (benefit)                  598           (252)

  Loss on disposal of assets                               3              -

Changes in operating assets and liabilities:                               

  Restricted cash                                      1,650          1,305

  Trade receivables                                  (12,686)       (36,727)

  Inventory                                           (1,276)        (1,954)

  Prepaid expenses and other current assets           (1,489)           533

  Other assets                                           610          1,162

  Accounts payable                                    (4,102)         7,761

  Accrued liabilities                                (55,455)       (26,046)

     &

Contact Profile

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

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

Keywords

Titanium Explorer

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