Hercules Offshore Announces Agreement to Divest of Land Rig Fleet

Hercules Offshore, Inc. today announced that it has entered into agreements with Petrex Sudamerica Sucursal de Venezuela S.A. and Saipem Perfuracoes e Construcoes Petroliferas Lda. (collectively, ‘Saipem’) for the sale of its nine land rigs and related assets (‘Land Assets’). The Land Assets include six land rigs in Venezuela, one in Trinidad and two in the United States. The purchase price is approximately $107 million and the transaction is expected to close late in the fourth quarter of 2007.