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Vantage Drilling Company: Vantage Drilling Company Reports Fourth Quarter 2008 Results

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^{Published in Business and Finance on Friday, March 13th 2009 at 5:03 GMT, Last Modified on 2009-11-03 19:26:26 by Market Wire}  

HOUSTON, TX--(Marketwire - March 13, 2009) - Vantage Drilling Company ("Vantage") (NYSE Alternext US: VTG-U) (NYSE Alternext US: [ VTG ]) (NYSE Alternext US: [ VTG-WS ]) reports a net loss of ($43.5) million or ($0.57) per diluted share for the three months ended December 31, 2008 as compared to net income of $1.8 million or $.04 per diluted share for the three months ended December 31, 2007. Net loss for the fiscal year ended December 31, 2008 was ($47.4) million or ($.78) per diluted share as compared to net income of $4.5 million or $0.14 per diluted share for the fiscal year ended December 31, 2007. The three months ended and year ended December 31, 2008 includes impairment and termination costs of $38.3 million associated with the termination of an option to acquire the Titanium Explorer drillship. The loss for the three months and year ended December 31, 2008 adjusted for the impairment and termination costs are ($5.2) million or ($0.07) per share and ($9.1) million or ($.15) per share.

Paul Bragg, President and Chief Executive Officer, commented, "The fourth quarter 2008 concludes our history in development stage. With the start up of operation of the Emerald Driller in February 2009 and commencement of construction management contracts for several deepwater rigs, we are now generating substantial revenues and cashflows. Recent contracts secured on two drillships are outstanding achievements for us and position us with a stable base of business for many years to come. Summarizing several important accomplishments are the following:

 -- Emerald Driller commenced a 2-year contract in Thailand. -- Current operating cash flow run-rate is approximately $70 million annually (1 jackup + construction management contracts). -- Awarded $1.1 Billion 5-year contract for Platinum Explorer drillship -- Awarded $1.6 Billion, 8-year contract for Titanium Explorer drillship -- Agreement to provide construction supervision, market and operate one deepwater, 6th generation semi-submersible (unit has $1.0 Billion, 5-year contract). Client has the option to extend Vantage's management services agreement to include a second semi-submersible." 

Vantage will conduct a call at 10:00 AM Eastern Time on Friday, March 13, 2009 to discuss results and developments for the fourth quarter 2008. To access the conference call, U.S. callers may dial toll free (877) 723-9509 and international callers may dial (719) 325-4797. The pass code will be 1411288. Please call ten minutes ahead of time to ensure proper connection. A replay of the conference call will be available for two weeks following the call and can be accessed by dialing (888) 203-1112 for U.S. callers and (719) 457-0820 for international callers. The access code for the replay is 1411288.

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with one Baker Marine Pacific Class 375 ultra-premium jackup drilling rig operating, and three such jackups 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 Offshore Limited for an ultra-deepwater semi-submersible.

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 (A Corporation in the Development Stage) CONSOLIDATED STATEMENT OF OPERATIONS Three Months Year Ended December 31, Ended December 31, -------------------------- ------------------------- 2008 2007 2008 2007 ------------ ------------ ------------ ----------- Revenue $ 912,750 $ -- $ 912,750 $ -- Operating costs and expenses Operating costs 5,365,160 -- 3,122,427 -- General and administrative 9,333,434 936,568 3,470,028 536,873 Impairment and termination costs 38,286,166 -- 38,286,166 -- Depreciation 101,263 10,421 78,309 4,815 ------------ ------------ ------------ ----------- Total operating expenses 53,086,023 946,989 44,956,930 541,688 ------------ ------------ ------------ ----------- Loss from operations (52,173,273) (946,989) (44,044,180) (541,688) Other income (expense) Interest income 4,095,067 7,699,060 6,176 3,193,968 Interest expense (56,485) -- (56,485) -- Other income 86,033 -- 86,033 -- ------------ ------------ ------------ ----------- Total other income (expense) 4,124,615 7,699,060 35,724 3,193,968 ------------ ------------ ------------ ----------- Income (loss) before income taxes (48,048,658) 6,752,071 (44,008,456) 2,652,280 Income tax provision (benefit) (670,466) 2,298,564 (540,650) 901,152 ------------ ------------ ------------ ----------- Net income (loss) $(47,378,192) $ 4,453,507 $(43,467,806) $ 1,751,128 ============ ============ ============ =========== Earnings (loss) Per Share Basic $ (0.78) $ 0.16 $ (0.57) $ 0.04 Diluted $ (0.78) $ 0.14 $ (0.57) $ 0.04 VANTAGE DRILLING COMPANY (A Corporation in the Development Stage) CONSOLIDATED BALANCE SHEET December 31, ---------------------------- 2008 2007 ------------- ------------- ASSETS Current assets Cash and cash equivalents $ 16,557,351 $ 1,262,625 Restricted cash 1,699,781 -- Restricted cash held in trust account -- 273,109,051 Receivables 3,276,843 -- Prepaid expenses and other assets 1,985,956 87,075 ------------- ------------- Total current assets 23,519,931 274,458,751 ------------- ------------- Property and Equipment Property and equipment 631,007,814 122,072 Accumulated depreciation (111,684) (10,421) ------------- ------------- Property and equipment, net 630,896,130 111,651 ------------- ------------- Other Assets Deferred income taxes 2,370,497 311,607 Other assets 8,496,964 756,771 ------------- ------------- Total other assets 10,867,461 1,068,378 ------------- ------------- Total assets $ 665,283,522 $ 275,638,780 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 3,826,815 $ 61,518 Accrued liabilities 14,766,472 578,618 Deferred underwriters fee -- 8,280,000 Income taxes payable (receivable) -- 310,171 Short-term debt 11,239,613 -- Current maturities of long-term debt 6,000,000 -- ------------- ------------- Total current liabilities 35,832,900 9,230,307 ------------- ------------- Long -term debt 133,000,000 -- Ordinary shares, subject to possible redemption, 10,346,550 shares at redemption value -- 79,286,965 Commitments and contingencies -- -- Shareholders' equity Preferred shares, $0.001 par value, 1,000,000 shares authorized, none issued or outstanding -- -- Ordinary shares, $0.001 par value, 400,000,000 and 100,000,000 shares authorized, and 75,708,331 and 42,375,000 shares issued and outstanding 75,708 42,375 Additional paid-in capital 542,330,581 185,159,318 Earnings (deficit) accumulated during the development stage (45,955,667) 1,919,815 ------------- ------------- Total shareholders' equity 496,450,622 187,121,508 ------------- ------------- Total liabilities and shareholders' equity $ 665,283,522 $ 275,638,780 ============= ============= VANTAGE DRILLING COMPANY (A Corporation in the Development Stage) CONSOLIDATED STATEMENT OF CASH FLOWS Year Ended December 31, ----------------------------- 2008 2007 ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (47,378,192) $ 4,453,507 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation expense 101,263 10,421 Amortization of debt financing costs 513,059 -- Share-based compensation expense 2,420,356 -- Deferred income tax benefit (2,058,890) (311,607) Write-off of asset value, net 28,286,166 -- Changes in operating assets and liabilities: Restricted cash (1,699,781) -- Receivables (3,276,843) -- Prepaid expenses and other assets (1,618,726) 93,201 Accounts payable 3,765,297 61,518 Accrued liabilities 15,117,296 888,789 ------------- ------------- Net cash provided by operating activities (5,828,995) 5,195,829 ------------- ------------- CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of assets (213,396,605) -- Additions to property and equipment (170,775,303) (122,072) Deferred acquisition costs -- (756,771 Restricted cash held in trust account 273,109,051 (273,109,051) ------------- ------------- Net cash provided by (used in) investing activities (111,062,857) (273,987,894) ------------- ------------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings under credit agreement 139,000,000 -- Debt issuance costs (8,533,406) -- Advances from stockholders of OGIL 3,300,000 -- Repayments of advances from stockholders of OGIL (3,300,000) -- Proceeds from issuance of ordinary shares to initial stockholders -- -- Proceeds from issuance of ordinary shares and warrants in private placement -- 6,000,000 Proceeds from issuance of ordinary shares and warrants to public stockholders -- 255,930,000 Proceeds from issuance of option to purchase ordinary shares and warrants to underwriters -- 100 Proceeds from notes payable-stockholders 10,000,000 85,800 Repayment of notes payable-stockholders -- (275,000) Proceeds from deferred underwriters fee -- 8,280,000 Repayment of deferred underwriters fee (8,280,000) -- Redemption of ordinary shares (16) -- ------------- ------------- Net cash provided by financing activities 132,186,578 270,020,900 ------------- ------------- Net increase (decrease) in cash and cash equivalents 15,294,726 1,228,835 Cash and cash equivalents -- beginning of period 1,262,625 33,790 ------------- ------------- Cash and cash equivalents -- end of period $ 16,557,351 $ 1,262,625 ============= =============