|                             |   |           |      |   |   |   |
|----------------------------------|--------|----------------|-----------|--------|--------|--------|
|                             |   | 2009           |      |   | 2008   |   |
|                             |   | (In Thousands) |      |
|                             |   |           |      |   |   |   |
| FOR THE YEAR ENDED SEPTEMBER 30: |   |           |      |   |   |   |
| REVENUES                         |   | $              | 586,507   |   |   | $      | 526,604 |   |
| NET INCOME                       |   |           | 250,745   |   |   |   | 215,438 |   |
| CAPITAL EXPENDITURES             |   |           | 430,470   |   |   |   | 328,246 |   |
| AT SEPTEMBER 30:                 |   |           |      |   |   |   |   |   |
| NET PROPERTY AND EQUIPMENT       |   | $              | 1,184,300 |   |   | $      | 787,838 |   |
| TOTAL ASSETS                     |   |           | 1,509,402 |   |   |   | 1,096,597 |   |
| TOTAL SHAREHOLDERS' EQUITY       |   |           | 1,102,293 |   |   |   | 843,690 |   |

----

----

----

| (In thousands, except per share amounts, fleet                            | At or For the Years Ended September 30, |      |      |   |     |
|---------------------------------------------------------------------------|-----------------------------------------|-----------|-----------|--------|----------|
|  data and ratios)                                                    |                                    | 2009      |      | 2008   |     | 2007 |   | 2006 |   | 2005 |   |
| STATEMENTS OF OPERATIONS DATA:                                            |                                    |      |      |   |     |   |   |   |   |   |   |
|      Revenues                                         | $                                       | 586,507   |      | $      | 526,604  |   | $ | 403,037 |   | $ | 276,625 |   |   | $ | 176,156 |   |
|      Contract drilling costs                          |                                    | (221,709  | )         |   | (216,395 | ) |   | (186,949 | ) |   | (144,366 | ) |   |   | (102,849 | ) |
|      Depreciation                                     |                                    | (35,119   | )         |   | (34,783  | ) |   | (33,366 | ) |   | (26,401 | ) |   |   | (26,735 | ) |
|      General and administrative expenses              |                                    | (31,639   | )         |   | (30,975  | ) |   | (23,929 | ) |   | (20,630 | ) |   |   | (14,245 | ) |
|      Gain on sale of equipment                        |                                    | 402       |      |   | 155      |   |   | 414 |   |   | 10,548 |   |   |   | - |   |
|      OPERATING INCOME                                 |                                    | 298,442   |      |   | 244,606  |   |   | 159,207 |   |   | 95,776 |   |   |   | 32,327 |   |
|      Other (expense) income                           |                                    | (2,011    | )         |   | 169      |   |   | 752 |   |   | (3,940 | ) |   |   | (6,719 | ) |
|      Tax (provision) benefit                          |                                    | (45,686   | )         |   | (29,337  | ) |   | (20,935 | ) |   | (5,714 | ) |   |   | 403 |   |
|                                                                      | NET INCOME                              | $         | 250,745   |   | $        | 215,438 |   | $ | 139,024 |   | $ | 86,122 |   |   | $ | 26,011 |   |
|                                                                      |                                    |      |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| PER SHARE DATA:                                                           |                                    |      |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
|      Earnings per common share:                       |                                    |      |      |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      | Basic                                   | $         | 3.91      |   | $        | 3.38 |   | $ | 2.22 |   | $ | 1.39 |   |   | $ | 0.43 |   |
|                                                                      | Diluted                                 | $         | 3.89      |   | $        | 3.34 |   | $ | 2.18 |   | $ | 1.37 |   |   | $ | 0.42 |   |
|      Average common shares outstanding:               |                                    |      |      |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      | Basic                                   |      | 64,167    |   |     | 63,756 |   |   | 62,686 |   |   | 61,872 |   |   |   | 60,824 |   |
|                                                                      | Diluted                                 |      | 64,493    |   |     | 64,556 |   |   | 63,628 |   |   | 62,884 |   |   |   | 62,440 |   |
|                                                                      |                                    |      |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| FLEET DATA:                                                               |                                    |      |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
|      Number of rigs owned or managed, at end          |                                    |      |      |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      | of period                               |      | 9         |   |     | 8 |   |   | 8 |   |   | 10 |   |   |   | 11 |   |
|      Utilization rate for in-service rigs (1)         |                                    | 85        | %         |   | 100      | % |   | 100 | % |   | 100 | % |   |   | 98 | % |
|                                                                      |                                    |      |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE SHEET DATA:                                                       |                                    |      |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
|      Cash and cash equivalents                        | $                                       | 100,259   |      | $      | 121,092  |   | $ | 100,361 |   | $ | 32,276 |   |   | $ | 18,982 |   |
|      Working capital                                  |                                    |      | 191,686   |   |     | 248,052 |   |   | 158,549 |   |   | 86,308 |   |   |   | 35,894 |   |
|      Net property and equipment                       |                                    | 1,184,300 |      |   | 787,838  |   |   | 493,851 |   |   | 436,166 |   |   |   | 390,778 |   |
|      Total assets                                     |                                    |      | 1,509,402 |   |     | 1,096,597 |   |   | 717,724 |   |   | 593,829 |   |   |   | 495,694 |   |
|      Total long-term debt (including current portion) |                                    | 275,000   |      |   | 170,000  |   |   | 18,000 |   |   | 64,000 |   |   |   | 90,000 |   |
|      Shareholders' equity (2) (3)                     |                                    | 1,102,293 |      |   | 843,690  |   |   | 615,855 |   |   | 458,894 |   |   |   | 362,137 |   |
|      Ratio of current assets to current liabilities   |                                    | 2.70      |      |   | 5.36     |   |   | 3.75 |   |   | 2.41 |   |   |   | 1.64 |   |
|                                                                      |                                    |      |      |   |     |   |   |   |   |   |   |   |   |   |   |   |   |

|   |  (1) | Excludes managed rigs, the SEASCOUT (sold in fiscal year 2006), and contractual downtime on rigs upgraded. |
|--------|-----------|------------------------------------------------------------------------------------------------------------|

----

| RIG NAME                    | YEAR UPGRADED OR CONSTRUCTION COMPLETED | MAXIMUM WATER DEPTH | PERCENTAGE OF FY 2009 REVENUES | LOCATION AT NOVEMBER 23, 2009 | CUSTOMER                                                       | CONTRACT STATUS ATNOVEMBER 23, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|-----------------------------|----------------------------------------------|---------------------|--------------------------------|-------------------------------|----------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| SEMISUBMERSIBLES -          |                                         |                |                           |
| ATWOOD EAGLE                | 2000/2002                                    | 5,000 Ft.           | 25%                            | Offshore Australia            | WOODSIDEENERGY LTD(“WOODSIDE”)                     | The rig is currently working under a drilling program with Woodside which is expected to be completed in June 2010.  Following the Woodside contract, the rig will drill one well deferred from a previous program with BHP Billiton Petroleum which is expected to be completed in August 2010.  Following this well, the rig hasa commitment with Chevron Australia Pty. Ltd. that will last at least until the expected delivery of the ATWOOD OSPREY in February/March 2011.  |   |   |
| ATWOOD HUNTER               | 1997/2001                                    | 5,000 Ft.           | 31%                            | Offshore Ghana                | KOSMOS ENERGY GHANA HC (“KOSMOS”)                  | The rig is currently working under a contract with Kosmos until June 2010.  Following the Kosmos work, the rig will be moved to Equatorial Guinea to work for Noble Energy, Inc.  The combined Noble/Kosmos contract commitment extends to October/November 2012.                                                                                                                                                                                                                 |   |   |
| ATWOOD FALCON               | 1998/2006                                    | 5,000 Ft.           | 14%                            | Offshore Malaysia             | SARAWAK SHELL BERHAD (“SHELL”)                     | The rig is currently working under a drilling program with Shell which extends to August 2011.                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |
|  ATWOOD SOUTHERN CROSS |   1997/2006                        |  2,000 Ft.     |  4%                       |  West Africa             |  NONE                                                     |  We are pursuing contract opportunities while the rig is currently “ready stacked” in West Africa.                                                                                                                                                                                                                                                                                                                                                                                   |   |   |
|  ATWOOD OSPREY         |  Under Construction                     |  6,000 Ft.     |  0%                       |  N/A                     | CHEVRON AUSTRALIA PTY. LTD.  (“CHEVRON”) |  The rig is under construction in Singapore with expected delivery in early 2011.  Upon delivery, the rig will be moved to offshore Australia where it will commence a three year drilling program for Chevron.                                                                                                                                                                                                                                                                        |   |   |
|  To-Be-Named           |  Under Construction                     |  10,000 Ft.    |  0%                       |  N/A                     |  NONE                                                     | The rig is under construction in Singapore with expected delivery in mid-2012.                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |

----

| CANTILEVER JACK-UPS – |
|-----------------------------|
| ATWOOD BEACON          | Construction Completed  in 2003 | 400 Ft. | 7% | Offshore Equatorial Guinea | HESS EQUATORIAL GUINEA, Inc. (“HESS”) | The rig is currently working under a drilling program for Hess which extends to June 2010.  |
|  VICKSBURG             | 1998/2009 | 300 Ft. | 7% | Offshore Thailand | NUCOASTAL (THAILAND) LIMITED | The rig is currently working under a drilling commitment for NuCoastal which extends to the end of March 2010.  |
| ATWOOD AURORA               | Construction Completed in 2009 | 350 Ft. | 4% | Offshore Egypt | RWE DEA NILE GMBH (“RWE”) | The rig is currently working under a contract commitment with RWE that extend to April 2011. |

| SUBMERSIBLE –                  |
|--------------------------------------|
|   RICHMOND                 | 2000/2002/2007 | 70 Ft. | 3% | U.S. Gulf of Mexico | APPLIED DRILLING TECHNOLOGY INC.  | The rig is currently working under a drilling commitment which extends into December 2009.  Contract opportunities are currently being pursued for additional work for the rig after it completes the drilling of this one-well program. |
| SEMISUBMERSIBLE TENDER ASSIST UNIT - |
|   SEAHAWK                  | 1992/1999/2006 | 600 Ft. | 5% | Offshore Equatorial Guinea | AMERADA HESS EQUATORIAL GUINEA, INC. (“HESS”) | The rig is currently working under a contractual commitment with Hess which extends to September 2010.  |
|                                 |   |   |   |   |   |   |

----

| ·   | our dependence on the oil and gas industry; |
|--------------------|---------------------------------------------|

| ·   | the operational risks involved in drilling for oil and gas; |
|--------------------|-------------------------------------------------------------|

| ·   | risks associated with the current global economic crisis and its impact on capital markets, liquidity, and financing of future drilling activity; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes in rig utilization and dayrates in response to the level of activity in the oil and gas industry, which is significantly affected by indications and expectations regarding the level and volatility of oil and gas prices, which in turn are affected by political, economic and weather conditions affecting or potentially affecting regional or worldwidedemand for oil and gas, actions or anticipated actions by OPEC, inventory levels, deliverability constraints, and future market activity; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the extent to which customers and potential customers continue to pursue deepwater drilling; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | exploration success or lack of exploration success by our customers and potential customers; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | the highly competitive and volatile nature of our business, with periods of low demand and excess rig availability; |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | the impact of possible disruption in operations due to terrorism, acts of piracy, embargoes, war or other military operations; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | our ability to enter into and the terms of future drilling contracts; |
|--------------------|-----------------------------------------------------------------------|

| ·   | the availability of qualified personnel; |
|--------------------|------------------------------------------|

| ·   | our failure to retain the business of one or more significant customers; |
|--------------------|--------------------------------------------------------------------------|

| ·   | the termination or renegotiation of contracts by customers; |
|--------------------|-------------------------------------------------------------|

| ·   | the availability of adequate insurance at a reasonable cost; |
|--------------------|--------------------------------------------------------------|

| ·   | the occurrence of an uninsured loss; |
|--------------------|--------------------------------------|

| ·   | the risks of international operations, including possible economic, political, social or monetary instability, and compliance with foreign laws; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the effect public health concerns could have on our international operations and financial results; |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | compliance with or breach of environmental laws; |
|--------------------|--------------------------------------------------|

| ·   | the incurrence of secured debt or additional unsecured indebtedness or other obligations by us or our subsidiaries; |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | the adequacy of sources of liquidity for our operations and those of our customers; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | currently unknown rig repair needs and/or additional opportunities to accelerate planned maintenance expenditures due to presently unanticipated rig downtime; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | higher than anticipated accruals for performance-based compensation due to better than anticipated performance by us, higher than anticipated severance expenses due to unanticipated employee terminations, higher than anticipated legal and accounting fees due to unanticipated financing or other corporate transactions, and other factors that could increasegeneral and administrative expenses; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the actions of our competitors in the offshore drilling industry, which could significantly influence rig dayrates and utilization; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes in the geographic areas in which our customers plan to operate or the tax rate in such jurisdiction, which in turn could change our expected effective tax rate; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes in oil and gas drilling technology or in our competitors’ drilling rig fleets that could make our drilling rigs less competitive or require major capital investments to keep them competitive; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | rig availability; |
|--------------------|-------------------|

| ·   | the effects and uncertainties of legal and administrative proceedings and other contingencies; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | the impact of governmental laws and regulations and the uncertainties involved in their administration, particularly in some foreign jurisdictions; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes in accepted interpretations of accounting guidelines and other accounting pronouncements and tax laws; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | risks involved in the construction of a dynamically positioned semisubmersible drilling unit without a contract; |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | although our current long-term contract commitments do not provide for early termination due to market deterioration, the risk that customers could seek to amend some of these contracts due to market decline which could alter the timing and amount of our current contracted cash flows; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the risks involved in the construction, upgrade, and repair of our drilling units including project delays affecting our ability to meet contractual commitments, as well as commencement of operations of our drilling units following delivery; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | such other factors as may be discussed in this report and our other reports filed with the Securities and Exchange Commission, or SEC. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Completing the construction and commissioning, and start-up of our ultra-premium jack-up, the ATWOOD AURORA; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | Completing the life enhancing upgrade of our premium jack-up, the VICKSBURG; |
|--------------------|------------------------------------------------------------------------------|

| ·   | Achieving the most favorable operating results in our history; and |
|--------------------|--------------------------------------------------------------------|

| ·   | Strengthening our liquidity position  by executing a $280 million credit facility in November 2008 at a time when the world’s financial and banking markets had experienced a significant downturn. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Average Per Day Revenues                                           |   |
|--------------------------------------------------------------------|--------|
|                                                               |   | Fiscal Year  |   |   | Fiscal Year |   |   | Fiscal Year |   |   |   |   |
|                                                               |   |  2007 |   |   |  2008 |   |   |  2009 |   |   |   |   |
| ATWOOD HUNTER                                                      |   | $ | 234,000 |   |   | $ | 246,000 |   |   | $ | 500,000 |   |   |   |   |
| ATWOOD EAGLE                                                       |   |   | 160,000 |   |   |   | 241,000 |   |   |   | 398,000 |   |   |   |   |
| ATWOOD FALCON                                                      |   |   | 138,000 |   |   |   | 216,000 |   |   |   | 223,000 |   |   |   |   |
| VICKSBURG                                                          |   |   | 110,000 |   |   |   | 155,000 |   |   |   | 118,000 |  (1) |   |   |   |   |
| ATWOOD BEACON                                                      |   |   | 109,000 |   |   |   | 128,000 |   |   |   | 105,000 |   |   |   |   |   |
| SEAHAWK                                                            |   |   | 84,000 |   |   |   | 88,000 |   |   |   | 85,000 |   |   |   |   |   |
| ATWOOD SOUTHERN CROSS                                              |   |   | 171,000 |   |   |   | 321,000 |   |   |   | 70,000 |  (2) |   |   |   |   |
| ATWOOD AURORA                                                      |   |   | --- |   |   |   | --- |   |   |   | 56,000 |  (3) |   |   |   |   |
| RICHMOND                                                           |   |   | 81,000 |   |   |   | 44,000 | (4) |   |   | 52,000 |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Rig incurred a life-enhancing upgrade during fiscal year 2009. |   |   |   |   |   |
| (2) Rig has been idle since mid-December 2008.                     |   |   |   |   |   |
| (3) Rig commenced operations in April 2009.                        |   |   |   |   |   |
| (4) Rig incurred a life-enhancing upgrade during fiscal year 2008. |   |   |   |   |   |

----

| VICKSBURG             | Ten (10) zero rate days during the third or fourth quarter due to required regulatory inspections  |
|-----------------------|---------------------------------------------------------------------------------------------------------|
| RICHMOND              | Ten (10) zero rate days during the third quarter for required regulatory inspections               |
| ATWOOD SOUTHERN CROSS | Ten (10) zero rate days during the fourth quarter for required regulatory inspections                   |

|                  |   | REVENUES      |   |
|-----------------------|--------|---------------|--------|
|                  |   | (In millions) |   |
|                  |   | Fiscal        |   |   | Fiscal |   |   |   |   |
|                  |   | Year 2009     |   |   | Year 2008 |   |   | Variance |   |
| ATWOOD HUNTER         |   | $             | 182.5  |   |   | $ | 89.9 |   |   | $ | 92.6 |   |
| ATWOOD EAGLE          |   |          | 145.1  |   |   |   | 88.4 |   |   |   | 56.7 |   |
| ATWOOD AURORA         |   |          | 20.2   |   |   |   | - |   |   |   | 20.2 |   |
| RICHMOND         |   |          | 19.1   |   |   |   | 16.1 |   |   |   | 3.0 |   |
| ATWOOD FALCON         |   |          | 81.6   |   |   |   | 79.0 |   |   |   | 2.6 |   |
| SEAHAWK               |   |          | 31.1   |   |   |   | 32.1 |   |   |   | (1.0 | ) |
| ATWOOD BEACON         |   |          | 38.3   |   |   |   | 46.8 |   |   |   | (8.5 | ) |
| VICKSBURG        |   |          | 43.0   |   |   |   | 56.7 |   |   |   | (13.7 | ) |
| ATWOOD SOUTHERN CROSS |   |          | 25.6   |   |   |   | 117.6 |   |   |   | (92.0 | ) |
|                  |   | $             | 586.5  |   |   | $ | 526.6 |   |   | $ | 59.9 |   |

----

|                  |   | CONTRACT DRILLING COSTS |   |
|-----------------------|--------|-------------------------|--------|
|                  |   | (In millions)           |   |
|                  |   | Fiscal                  |   |   | Fiscal |   |   |   |   |
|                  |   | Year 2009               |   |   | Year 2008 |   |   | Variance |   |
| ATWOOD AURORA         |   | $                       | 9.7    |   |   | $ | - |   |   | $ | 9.7 |   |
| ATWOOD HUNTER         |   |                    | 36.8   |   |   |   | 28.9 |   |   |   | 7.9 |   |
| ATWOOD EAGLE          |   |                    | 47.0   |   |   |   | 44.5 |   |   |   | 2.5 |   |
| RICHMOND         |   |                    | 14.2   |   |   |   | 12.1 |   |   |   | 2.1 |   |
| ATWOOD FALCON         |   |                    | 25.8   |   |   |   | 24.6 |   |   |   | 1.2 |   |
| ATWOOD BEACON         |   |                    | 16.7   |   |   |   | 19.2 |   |   |   | (2.5 | ) |
| VICKSBURG        |   |                    | 15.2   |   |   |   | 18.6 |   |   |   | (3.4 | ) |
| SEAHAWK               |   |                    | 24.7   |   |   |   | 30.1 |   |   |   | (5.4 | ) |
| ATWOOD SOUTHERN CROSS |   |                    | 23.9   |   |   |   | 33.1 |   |   |   | (9.2 | ) |
| OTHER                 |   |                    | 7.7    |   |   |   | 5.3 |   |   |   | 2.4 |   |
|                  |   | $                       | 221.7  |   |   | $ | 216.4 |   |   | $ | 5.3 |   |

----

|                  |   | DEPRECIATION EXPENSE |   |
|-----------------------|--------|----------------------|--------|
|                  |   | (In millions)        |   |
|                  |   | Fiscal               |   |   | Fiscal |   |   |   |   |
|                  |   | Year 2009            |   |   | Year 2008 |   |   | Variance |   |
| ATWOOD AURORA         |   | $                    | 3.3    |   |   | $ | - |   |   | $ | 3.3 |   |
| RICHMOND         |   |                 | 1.7    |   |   |   | 1.0 |   |   |   | 0.7 |   |
| ATWOOD HUNTER         |   |                 | 6.3    |   |   |   | 5.9 |   |   |   | 0.4 |   |
| ATWOOD FALCON         |   |                 | 5.5    |   |   |   | 5.2 |   |   |   | 0.3 |   |
| ATWOOD SOUTHERN CROSS |   |                 | 3.8    |   |   |   | 3.7 |   |   |   | 0.1 |   |
| ATWOOD EAGLE          |   |                 | 4.5    |   |   |   | 4.5 |   |   |   | - |   |
| ATWOOD BEACON         |   |                 | 4.8    |   |   |   | 5.1 |   |   |   | (0.3 | ) |
| VICKSBURG        |   |                 | 2.4    |   |   |   | 2.8 |   |   |   | (0.4 | ) |
| SEAHAWK               |   |                 | 2.3    |   |   |   | 6.1 |   |   |   | (3.8 | ) |
| OTHER                 |   |                 | 0.5    |   |   |   | 0.5 |   |   |   | - |   |
|                  |   | $                    | 35.1   |   |   | $ | 34.8 |   |   | $ | 0.3 |   |
|                  |   |                 |   |   |   |   |   |   |   |   |   |   |

----

|                           |   | REVENUES      |   |
|--------------------------------|--------|---------------|--------|
|                           |   | (In millions) |   |
|                           |   | Fiscal        |   |   | Fiscal |   |   |   |   |
|                           |   | Year 2008     |   |   | Year 2007 |   |   | Variance |   |
| ATWOOD SOUTHERN CROSS          |   | $             | 117.6  |   |   | $ | 62.3 |   |   | $ | 55.3 |   |
| ATWOOD EAGLE                   |   |          | 88.4   |   |   |   | 58.4 |   |   |   | 30.0 |   |
| ATWOOD FALCON                  |   |          | 79.0   |   |   |   | 50.5 |   |   |   | 28.5 |   |
| VICKSBURG                 |   |          | 56.7   |   |   |   | 40.0 |   |   |   | 16.7 |   |
| ATWOOD BEACON                  |   |          | 46.8   |   |   |   | 39.8 |   |   |   | 7.0 |   |
| ATWOOD HUNTER                  |   |          | 89.9   |   |   |   | 85.4 |   |   |   | 4.5 |   |
| SEAHAWK                        |   |          | 32.1   |   |   |   | 30.6 |   |   |   | 1.5 |   |
| AUSTRALIA MANAGEMENT CONTRACTS |   |          | -      |   |   |   | 6.5 |   |   |   | (6.5 | ) |
| RICHMOND                  |   |          | 16.1   |   |   |   | 29.5 |   |   |   | (13.4 | ) |
|                           |   | $             | 526.6  |   |   | $ | 403.0 |   |   | $ | 123.6 |   |

----

|                           |   | CONTRACT DRILLING COSTS |   |
|--------------------------------|--------|-------------------------|--------|
|                           |   | (In millions)           |   |
|                           |   | Fiscal                  |   |   | Fiscal |   |   |   |   |
|                           |   | Year 2008               |   |   | Year 2007 |   |   | Variance |   |
| ATWOOD SOUTHERN CROSS          |   | $                       | 33.1   |   |   | $ | 20.7 |   |   | $ | 12.4 |   |
| ATWOOD EAGLE                   |   |                    | 44.5   |   |   |   | 35.0 |   |   |   | 9.5 |   |
| VICKSBURG                 |   |                    | 18.6   |   |   |   | 14.0 |   |   |   | 4.6 |   |
| ATWOOD BEACON                  |   |                    | 19.2   |   |   |   | 15.5 |   |   |   | 3.7 |   |
| ATWOOD HUNTER                  |   |                    | 28.9   |   |   |   | 25.2 |   |   |   | 3.7 |   |
| SEAHAWK                        |   |                    | 30.1   |   |   |   | 28.2 |   |   |   | 1.9 |   |
| ATWOOD FALCON                  |   |                    | 24.6   |   |   |   | 23.6 |   |   |   | 1.0 |   |
| RICHMOND                  |   |                    | 12.1   |   |   |   | 13.1 |   |   |   | (1.0 | ) |
| AUSTRALIA MANAGEMENT CONTRACTS |   |                    | -      |   |   |   | 5.1 |   |   |   | (5.1 | ) |
| OTHER                          |   |                    | 5.3    |   |   |   | 6.5 |   |   |   | (1.2 | ) |
|                           |   | $                       | 216.4  |   |   | $ | 186.9 |   |   | $ | 29.5 |   |
|                           |   |                    |   |   |   |   |   |   |   |   |   |   |

|                  |   | DEPRECIATION EXPENSE |   |
|-----------------------|--------|----------------------|--------|
|                  |   | (In millions)        |   |
|                  |   | Fiscal               |   |   | Fiscal |   |   |   |   |
|                  |   | Year 2008            |   |   | Year 2007 |   |   | Variance |   |
| ATWOOD FALCON         |   | $                    | 5.2    |   |   | $ | 4.4 |   |   | $ | 0.8 |   |
| ATWOOD SOUTHERN CROSS |   |                 | 3.7    |   |   |   | 3.4 |   |   |   | 0.3 |   |
| ATWOOD HUNTER         |   |                 | 5.9    |   |   |   | 5.7 |   |   |   | 0.2 |   |
| SEAHAWK               |   |                 | 6.1    |   |   |   | 6.1 |   |   |   | - |   |
| RICHMOND         |   |                 | 1.0    |   |   |   | 1.0 |   |   |   | - |   |
| ATWOOD EAGLE          |   |                 | 4.5    |   |   |   | 4.5 |   |   |   | - |   |
| ATWOOD BEACON         |   |                 | 5.1    |   |   |   | 5.1 |   |   |   | - |   |
| VICKSBURG        |   |                 | 2.8    |   |   |   | 2.9 |   |   |   | (0.1 | ) |
| OTHER                 |   |                 | 0.5    |   |   |   | 0.3 |   |   |   | 0.2 |   |
|                  |   | $                    | 34.8   |   |   | $ | 33.4 |   |   | $ | 1.4 |   |

----

----

|                     |   |   |    |   |   |   |    |   |   |   |    |   |   | Fiscal     |    |
|--------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|------------|---------|
|                     |   | Fiscal |    |   | Fiscal |   |    | Fiscal |   |   | Fiscal  |   |   | 2014 and   |    |
|                     |   | 2010   |    |   | 2011   |   |    | 2012   |   |   | 2013    |   |   | thereafter |    |
| Credit Facility (1)      |   | $      | -       |   |   | $      | -       |   |   | $      | -       |   |   | $          | 200,000 |   |   | $ | 75,000 |   |
| Purchase Commitments (2) |   |   | 250,000 |   |   |   | 305,000 |   |   |   | 250,000 |   |   |       | -       |   |   |   | - |   |
| Operating Leases         |   |   | 1,271   |   |   |   | 1,098   |   |   |   | 1,022   |   |   |       | 1,019   |   |   |   | 1,019 |   |
|                     |   | $      | 251,271 |   |   | $      | 306,098 |   |   | $      | 251,022 |   |   | $          | 201,019 |   |   | $ | 76,019 |   |

| (1)   | Amounts exclude interest on our $300 million and $280 million credit facilities as interest rates are variable. |
|-----------------|-----------------------------------------------------------------------------------------------------------------|

| (2)   | Rig construction commitments for the two new deepwater semisubmersibles. |
|-----------------|--------------------------------------------------------------------------|

----

----

----

----

----

| (i)   | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company;and |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  /s/ John R. IrwinJohn R. Irwin Director, President  and Chief Executive Officer |   | s/ James M. HollandJames M. HollandSenior Vice President, ChiefFinancial Officer and Secretary |   |
|------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|
|                                                                                                 |   |                                                                                           |   |
|  November 25, 2009                                                                              |   |                                                                                           |   |

----

----

|                                                                                                          |   |   |      |   |   |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| September 30,                 |   |
| (In thousands)                                                                                                | 2009   | 2008   |      |
|                                                                                                          |   |   |      |   |   |   |
| ASSETS                                                                                                        |   |   |      |   |   |   |
|                                                                                                          |   |   |      |   |   |   |
| CURRENT ASSETS:                                                                                               |   |   |      |   |   |   |
|     Cash and cash equivalents                                                             |   | $      | 100,259   |   |   | $      | 121,092 |   |
|     Accounts receivable, net of an allowance                                              |   |   |      |   |   |   |   |   |
|         of $65 and $114 at September 30, 2009                         |   |   |      |   |   |   |   |   |
|         and 2008, respectively                                        |   |   | 124,053   |   |   |   | 132,367 |   |
|     Income tax receivable                                                                 |   |   | 8,306     |   |   |   | 3,292 |   |
|     Insurance receivable                                                                  |   |   | 2,518     |   |   |   | - |   |
|     Inventories of materials and supplies                                                 |   |   | 50,136    |   |   |   | 37,906 |   |
|     Deferred tax assets                                                                   |   |   | 35        |   |   |   | 21 |   |
|     Prepaid expenses and deferred costs                                                   |   |   | 19,297    |   |   |   | 10,225 |   |
|       Total Current Assets                                                      |   |   | 304,604   |   |   |   | 304,903 |   |
|                                                                                                          |   |   |      |   |   |   |   |   |
| NET PROPERTY AND EQUIPMENT                                                                                    |   |   | 1,184,300 |   |   |   | 787,838 |   |
|                                                                                                          |   |   | 1,184,300 |   |   |   | 787,838 |   |
|                                                                                                          |   |   |      |   |   |   |   |   |
| LONG TERM ASSETS:                                                                                             |   |   |      |   |   |   |   |   |
|      Other receivables                                                               |   |   | 14,331    |   |   |   | - |   |
|      Deferred costs and other assets                                                 |   |   | 6,167     |   |   |   | 3,856 |   |
|                                                                                                          |   |   | 20,498    |   |   |   | 3,856 |   |
|                                                                                                          |   | $      | 1,509,402 |   |   | $      | 1,096,597 |   |
|                                                                                                          |   |   |      |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                          |   |   |      |   |   |   |   |   |
|                                                                                                          |   |   |      |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                                          |   |   |      |   |   |   |   |   |
|    Accounts payable                                                                            |   | $      | 19,066    |   |   | $      | 16,987 |   |
|    Accrued liabilities                                                                         |   |   | 28,960    |   |   |   | 23,551 |   |
|    Income tax payable                                                                          |   |   | 29,067    |   |   |   | 16,009 |   |
|    Deferred credits                                                                            |   |   | 35,825    |   |   |   | 304 |   |
|        Total Current Liabilities                                           |   |   | 112,918   |   |   |   | 56,851 |   |
|                                                                                                          |   |   |      |   |   |   |   |   |
|                                                                                                          |   |   |      |   |   |   |   |   |
|  LONG-TERM DEBT                                                                                          |   |   | 275,000   |   |   |   | 170,000 |   |
|                                                                                                          |   |   | 275,000   |   |   |   | 170,000 |   |
| LONG TERM LIABILITIES:                                                                                        |   |   |      |   |   |   |   |   |
|      Deferred income taxes                                                           |   |   | 6,082     |   |   |   | 10,595 |   |
|      Deferred credits                                                                |   |   | 2,921     |   |   |   | 7,942 |   |
|      Other                                                                           |   |   | 10,188    |   |   |   | 7,519 |   |
|                                                                                                          |   |   | 19,191    |   |   |   | 26,056 |   |
|                                                                                                          |   |   |      |   |   |   |   |   |
| COMMITMENTS AND CONTENGENCIES (SEE NOTE 11)                                                                   |   |   |      |   |   |
|                                                                                                          |   |   |      |   |   |   |   |   |
| SHAREHOLDERS' EQUITY (NOTE 7):                                                                                |   |   |      |   |   |   |   |   |
|     Preferred stock, no par value;                                                        |   |   |      |   |   |   |   |   |
|          1,000 shares authorized,  none outstanding    |   |   | -         |   |   |   | - |   |
|     Common stock, $1 par value, 90,000 shares                                             |   |   |      |   |   |   |   |   |
|           authorized with 64,236 and 64,031 issued          |   |   |      |   |   |   |   |   |
|           and outstanding at September 30, 2009             |   |   |      |   |   |   |   |   |
|           and 2008, respectively                            |   |   | 64,236    |   |   |   | 64,031 |   |
|     Paid-in capital                                                                       |   |   | 122,457   |   |   |   | 114,804 |   |
|     Retained earnings                                                                     |   |   | 915,600   |   |   |   | 664,855 |   |
|         Total Shareholders' Equity                                    |   |   | 1,102,293 |   |   |   | 843,690 |   |
|                                                                                                          |   | $      | 1,509,402 |   |   | $      | 1,096,597 |   |
|                                                                                                          |   |   |      |   |   |   |   |   |

----

|                                                | For Years Ended September 30, |   |
|-----------------------------------------------------|-------------------------------|--------|
| (In thousands, except per share amounts)            | 2009                          | 2008   | 2007 |   |
|                                                |                          |   |   |   |   |   |   |   |   |
| REVENUES:                                           |                          |   |   |   |   |   |   |   |   |
|  Contract drilling                             |                          | $      | 586,507 |   |   | $ | 526,604 |   |   | $ | 400,479 |   |
|  Business interruption proceeds                |                          |   | - |   |   |   | - |   |   |   | 2,558 |   |
|                                                |                          |   | 586,507 |   |   |   | 526,604 |   |   |   | 403,037 |   |
|  COSTS AND EXPENSES:                           |                          |   |   |   |   |   |   |   |   |   |   |   |
|  Contract drilling                             |                          |   | 221,709 |   |   |   | 216,395 |   |   |   | 186,949 |   |
|  Depreciation                                  |                          |   | 35,119 |   |   |   | 34,783 |   |   |   | 33,366 |   |
|  General and administrative                    |                          |   | 31,639 |   |   |   | 30,975 |   |   |   | 23,929 |   |
|  Gain on sale of equipment                     |                          |   | (402 | ) |   |   | (155 | ) |   |   | (414 | ) |
|                                                |                          |   | 288,065 |   |   |   | 281,998 |   |   |   | 243,830 |   |
|  OPERATING INCOME                              |                          |   | 298,442 |   |   |   | 244,606 |   |   |   | 159,207 |   |
|  OTHER INCOME (EXPENSE):                       |                          |   |   |   |   |   |   |   |   |   |   |   |
|  Interest expense, net of capitalized interest |                          |   | (2,293 | ) |   |   | (1,410 | ) |   |   | (1,689 | ) |
|  Interest income                               |                          |   | 282 |   |   |   | 1,579 |   |   |   | 2,441 |   |
|                                                |                          |   | (2,011 | ) |   |   | 169 |   |   |   | 752 |   |
|  INCOME BEFORE INCOME TAXES                    |                          |   | 296,431 |   |   |   | 244,775 |   |   |   | 159,959 |   |
|  PROVISION FOR INCOME TAXES                    |                          |   | 45,686 |   |   |   | 29,337 |   |   |   | 20,935 |   |
|  NET INCOME                                    |                          | $      | 250,745 |   |   | $ | 215,438 |   |   | $ | 139,024 |   |
|  EARNINGS PER COMMON SHARE (NOTE 2):           |                          |   |   |   |   |   |   |   |   |   |   |   |
|  Basic                                         |                          | $      | 3.91 |   |   | $ | 3.38 |   |   | $ | 2.22 |   |
|  Diluted                                       |                          |   | 3.89 |   |   |   | 3.34 |   |   |   | 2.18 |   |
|  AVERAGE COMMON SHARES OUTSTANDING (NOTE 2):   |                          |   |   |   |   |   |   |   |   |   |   |   |
|  Basic                                         |                          |   | 64,167 |   |   |   | 63,756 |   |   |   | 62,686 |   |
|  Diluted                                       |                          |   | 64,493 |   |   |   | 64,556 |   |   |   | 63,628 |   |

----

|                                                                           | For Years Ended September 30, |   |
|--------------------------------------------------------------------------------|-------------------------------|--------|
| (In thousands)                                                                 | 2009                          | 2008   | 2007 |   |
| CASH FLOW FROM OPERATING ACTIVITIES:                                           |                          |   |   |   |   |   |   |   |   |
|   Net income                                               |                          | $      | 250,745 |   |   | $ | 215,438 |   |   | $ | 139,024 |   |
| Adjustments to reconcile net income to net cash provided by                    |                          |   |   |   |   |   |   |   |   |   |   |   |
| operating activities:                                                          |                          |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                                                                   |                          |   | 35,119 |   |   |   | 34,783 |   |   |   | 33,366 |   |
| Amortization of debt issuance costs                                            |                          |   | 717 |   |   |   | 657 |   |   |   | 804 |   |
| Amortization of deferred items                                                 |                          |   | (15,902 | ) |   |   | (10,305 | ) |   |   | (25,729 | ) |
| Provision for doubtful accounts                                                |                          |   | 1,002 |   |   |   | 764 |   |   |   | 127 |   |
| Provision for inventory obsolescence                                           |                          |   | 680 |   |   |   | 290 |   |   |   | 240 |   |
| Deferred federal income tax benefit                                            |                          |   | (4,527 | ) |   |   | (3,765 | ) |   |   | (2,169 | ) |
| Share-based compensation expense                                               |                          |   | 7,664 |   |   |   | 7,901 |   |   |   | 5,005 |   |
| Gain on sale of assets                                                         |                          |   | (402 | ) |   |   | (155 | ) |   |   | (414 | ) |
| Changes in assets and liabilities:                                             |                          |   |   |   |   |   |   |   |   |   |   |   |
| (Increase) decrease in accounts receivable                                     |                          |   | (4,819 | ) |   |   | (59,895 | ) |   |   | 3,498 |   |
| Increase in income tax receivable                                              |                          |   | (5,014 | ) |   |   | (1,422 | ) |   |   | (1,805 | ) |
| Increase in inventory                                                          |                          |   | (12,910 | ) |   |   | (11,475 | ) |   |   | (4,837 | ) |
| (Increase) decrease in prepaid expenses                                        |                          |   | (1,892 | ) |   |   | 15 |   |   |   | (1,454 | ) |
| Increase in deferred costs and other assets                                    |                          |   | (9,825 | ) |   |   | (1,350 | ) |   |   | (4,506 | ) |
| Increase (decrease) in accounts payable                                        |                          |   | (11 | ) |   |   | 5,218 |   |   |   | 9 |   |
| Increase (decrease) in accrued liabilities                                     |                          |   | (43 | ) |   |   | 6,965 |   |   |   | 6,113 |   |
| Increase in income tax payable                                                 |                          |   | 13,058 |   |   |   | 7,349 |   |   |   | 6,011 |   |
| Increase in deferred credits and other liabilities                             |                          |   | 51,262 |   |   |   | 887 |   |   |   | 34,941 |   |
|                                                                           |                          |   | 54,157 |   |   |   | (23,538 | ) |   |   | 49,200 |   |
| Net Cash Provided by Operating Activities                                      |                          |   | 304,902 |   |   |   | 191,900 |   |   |   | 188,224 |   |
| CASH FLOW FROM INVESTING ACTIVITIES:                                           |                          |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                           |                          |   | (430,470 | ) |   |   | (328,246 | ) |   |   | (88,770 | ) |
| Collection of insurance receivable                                             |                          |   | 1,822 |   |   |   | - |   |   |   | 550 |   |
| Proceeds from sale of assets                                                   |                          |   | 330 |   |   |   | 378 |   |   |   | 669 |   |
| Net Cash Used by Investing Activities                                          |                          |   | (428,318 | ) |   |   | (327,868 | ) |   |   | (87,551 | ) |
| CASH FLOW FROM FINANCING ACTIVITIES:                                           |                          |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from debt                                                             |                          |   | 155,000 |   |   |   | 170,000 |   |   |   | - |   |
| Principal payments on debt                                                     |                          |   | (50,000 | ) |   |   | (18,000 | ) |   |   | (46,000 | ) |
| Debt issuance costs paid                                                       |                          |   | (2,611 | ) |   |   | (1,336 | ) |   |   | - |   |
| Tax benefit from the exercise of stock options                                 |                          |   | - |   |   |   | - |   |   |   | 3,432 |   |
| Proceeds from exercise of stock options                                        |                          |   | 194 |   |   |   | 6,035 |   |   |   | 9,980 |   |
| Net Cash Provided (Used) by Financing Activities                               |                          |   | 102,583 |   |   |   | 156,699 |   |   |   | (32,588 | ) |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                           |                          | $      | (20,833 | ) |   | $ | 20,731 |   |   | $ | 68,085 |   |
| CASH AND CASH EQUIVALENTS, at beginning of period                              |                          | $      | 121,092 |   |   | $ | 100,361 |   |   | $ | 32,276 |   |
| CASH AND CASH EQUIVALENTS, at end of period                                    |                          | $      | 100,259 |   |   | $ | 121,092 |   |   | $ | 100,361 |   |
|                                                                           |                          |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                              |                          |   |   |   |   |   |   |   |   |   |   |   |
| Cash paid during the year for domestic and foreign income taxes                |                          | $      | 40,713 |   |   | $ | 27,421 |   |   | $ | 13,095 |   |
| Cash paid during the year for interest, net of amounts capitalized             |                          | $      | 2,144 |   |   | $ | 1,342 |   |   | $ | 1,822 |   |
|                                                                           |                          |   |   |   |   |   |   |   |   |   |   |   |
| Non-cash activities:                                                           |                          |   |   |   |   |   |   |   |   |   |   |   |
| Increase in insurance receivable related to capital expenditures and inventory |                          | $      | 2,518 |   |   | $ | 0 |   |   | $ | 0 |   |
| Increase in accrued liabilities related to capital expenditures                |                          | $      | 7,579 |   |   | $ | 746 |   |   | $ | 745 |   |
|                                                                           |                          |   |   |   |   |   |   |   |   |   |   |   |
|                                                                           |                          |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                |   |         |          |     |                      |   |
|-----------------------------------------------------|--------|--------------|---------------|----------|---------------------------|--------|
|                                                |   |         |          |     |                      |   |   |   |   |   |   |  Total |   |
|                                                |   | Common Stock |  Paid-in | Retained |  Stockholders’ |   |
| (In thousands)                                      | Shares | Amount       | Capital       | Earnings | Equity                    |   |
|                                                |   |         |          |     |                      |   |   |   |   |   |   |   |   |   |   |
| September 30, 2006                                  |   |         | 62,092        |     |                      | $      | 62,092 |   |   | $ | 84,870 |   |   | $ | 311,932 |   |   | $ | 458,894 |   |
| Net income                                          |   |         | -             |     |                      |   | - |   |   |   | - |   |   |   | 139,024 |   |   |   | 139,024 |   |
| Restricted stock awards                             |   |         | 14            |     |                      |   | 14 |   |   |   | (14 | ) |   |   | - |   |   |   | - |   |
| Exercise of employee stock options                  |   |         | 1,244         |     |                      |   | 1,244 |   |   |   | 8,736 |   |   |   | - |   |   |   | 9,980 |   |
| Stock option and restricted stock                   |   |         |          |     |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     award compensation expense  |   |         |          |     |                      |   |   |   |   |   | 5,005 |   |   |   |   |   |   |   | 5,005 |   |
| Tax benefit from exercise of employee stock options |   |         | -             |     |                      |   | - |   |   |   | 2,952 |   |   |   | - |   |   |   | 2,952 |   |
| September 30, 2007                                  |   |         | 63,350        |     |                      |   | 63,350 |   |   |   | 101,549 |   |   |   | 450,956 |   |   |   | 615,855 |   |
| FIN 48 adoption                                     |   |         | -             |     |                      |   | - |   |   |   | - |   |   |   | (1,539 | ) |   |   | (1,539 | ) |
| Net income                                          |   |         | -             |     |                      |   | - |   |   |   | - |   |   |   | 215,438 |   |   |   | 215,438 |   |
| Exercise of employee stock options                  |   |         | 681           |     |                      |   | 681 |   |   |   | 5,354 |   |   |   | - |   |   |   | 6,035 |   |
| Stock option and restricted stock                   |   |         |          |     |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     award compensation expense  |   |         | -             |     |                      |   | - |   |   |   | 7,901 |   |   |   | - |   |   |   | 7,901 |   |
| September 30, 2008                                  |   |         | 64,031        |     |                      |   | 64,031 |   |   |   | 114,804 |   |   |   | 664,855 |   |   |   | 843,690 |   |
| Net income                                          |   |         | -             |     |                      |   | - |   |   |   | - |   |   |   | 250,745 |   |   |   | 250,745 |   |
| Exercise of employee stock options                  |   |         | 205           |     |                      |   | 205 |   |   |   | (11 | ) |   |   | - |   |   |   | 194 |   |
| Stock option and restricted stock                   |   |         |          |     |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     award compensation expense  |   |         | -             |     |                      |   | - |   |   |   | 7,664 |   |   |   | - |   |   |   | 7,664 |   |
| September 30, 2009                                  |   | $            | 64,236        |     |                      | $      | 64,236 |   |   | $ | 122,457 |   |   | $ | 915,600 |   |   | $ | 1,102,293 |   |
|                                                |   |         |          |     |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                                                                | Years     |
|---------------------------------------------------------------------|-----------|
| Drilling vessels and related equipmentDrill pipeFurniture and other | 5-3533-10 |

----

----

|         |                                  |       |    |   |   |   |             |   |
|--------------|---------------------------------------|------------|---------|--------|--------|--------|------------------|--------|
|         |                                  | Net Income |    |   | Shares |   | Per Share Amount |   |
| Fiscal 2009: |                                  |       |    |   |   |   |             |   |
|         | Basic earnings per share              | $          | 250,745 |   |   |   | 64,167           |   |   | $ | 3.91 |   |
|         | Effect of dilutive securities – |       |    |   |   |   |             |   |   |   |   |   |
|         | Stock options                         |       | -       |   |   |   | 326              |   |   |   | (0.02 | ) |
|         | Diluted earnings per share            | $          | 250,745 |   |   |   | 64,493           |   |   | $ | 3.89 |   |
| Fiscal 2008: |                                  |       |    |   |   |   |             |   |   |   |   |
|         | Basic earnings per share              | $          | 215,438 |   |   |   | 63,756           |   |   | $ | 3.38 |   |
|         | Effect of dilutive securities – |       |    |   |   |   |             |   |   |   |   |   |
|         | Stock options                         |       | -       |   |   |   | 800              |   |   |   | (0.04 | ) |
|         | Diluted earnings per share            | $          | 215,438 |   |   |   | 64,556           |   |   | $ | 3.34 |   |
| Fiscal 2007: |                                  |       |    |   |   |   |             |   |   |   |   |
|         | Basic earnings per share              | $          | 139,024 |   |   |   | 62,686           |   |   | $ | 2.22 |   |
|         | Effect of dilutive securities – |       |    |   |   |   |             |   |   |   |   |   |
|         | Stock options                         |       | -       |   |   |   | 942              |   |   |   | (0.04 | ) |
|         | Diluted earnings per share            | $          | 139,024 |   |   |   | 63,628           |   |   | $ | 2.18 |   |

----

|                                         |   | 2007   |      |   | 2001   |   |    | 1996   |   |
|----------------------------------------------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|
|                                         |   | Plan   |      |   | Plan   |   |    | Plan   |   |
|                                         |   |   |      |   |   |   |    |   |   |
| Shares available for future awards or grants |   |   | 2,781,749 |   |   |   | -       |   |   |   | - |   |
| Outstanding stock option grants              |   |   | 461,948   |   |   |   | 926,528 |   |   |   | 110,922 |   |
| Outstanding unvested restricted stock awards |   |   | 439,880   |   |   |   | 118,300 |   |   |   | - |   |

|                                              |   | September 30, |   |
|---------------------------------------------------|--------|---------------|--------|
|                                              |   | 2009          |   |   | 2008 |   |
| Unrecognized Compensation Cost                    |   |          |   |   |   |   |
| Stock options                                     |   | $             | 3,738  |   |   | $ | 4,414 |   |
| Restricted stock awards                           |   |          | 7,329  |   |   |   | 10,072 |   |
| Total                                             |   | $             | 11,067 |   |   | $ | 14,486 |   |
|                                              |   |          |   |   |   |   |   |   |
| Remaining weighted average service period (Years) |   |          | 2.1    |   |   |   | 2.6 |   |

----

|                    |   | Fiscal |   |   | Fiscal |   |   | Fiscal |   |
|-------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                    |   | 2009   |   |   | 2008   |   |   | 2007   |   |
| Risk-Free Interest Rate |   |   | 1.5    | %      |   |   | 3.7    | %      |   |   | 4.5 | % |
| Expected Volatility     |   |   | 42     | %      |   |   | 46     | %      |   |   | 46 | % |
| Expected Life (Years)   |   |   | 5.2    |   |   |   | 5.3    |   |   |   | 5.3 |   |
| Dividend Yield          |   | None   |   |   | None   |   |   | None   |   |

|                              |   |      |   |   |     |   | Weighted     |   |                                                                                                |   |
|-----------------------------------|--------|-----------|--------|--------|----------|--------|--------------|--------|-----------------------------------------------------------------------------------------------------|--------|
|                              |   |      |   |   | Weighted |   | Average      |   |                                                                                                |   |
|                              |   | Number of |   |   | Average  |   | Remaining    |   | Aggregate                                                                                           |   |
|                              |   | Options   |   |   | Exercise |   | Contractual  |   | Intrinsic                                                                                           |   |
|                              |   | (000s)    |   |   | Price    |   | Life (Years) |   | Value (000s)                                                                                        |   |
| Outstanding at October 1, 2008    |   |      | 1,253  |   |     | $      | 18.82        |   |                                                                                                |   |   |   |
| Granted                           |   |      | 286    |   |     |   | 14.65        |   |                                                                                                |   |   |   |
| Exercised                         |   |      | (20    | )      |     |   | 10.74        |   |                                                                                                |   | $ | 355 |   |
| Forfeited                         |   |      | (20    | )      |     |   | 26.46        |   |                                                                                                |   |   |   |   |
| Outstanding at September 30, 2009 |   |      | 1,499  |   |     | $      | 18.03        |   |                 6.2 |   | $ | 25,846 |   |
| Exercisable at September 30, 2009 |   |      | 960    |   |     | $      | 14.80        |   |                 5.0 |   | $ | 19,651 |   |

----

|                           |   | Number of |   |   |       |   |
|--------------------------------|--------|-----------|--------|--------|------------|--------|
|                           |   | Shares    |   |   | Wtd. Avg.  |   |
|                           |   | (000s)    |   |   | Fair Value |   |
| Unvested at October 1, 2008    |   |      | 581    |   |       | $      | 32.50 |   |
| Granted                        |   |      | 173    |   |       |   | 14.65 |   |
| Vested                         |   |      | (185   | )      |       |   | 20.06 |   |
| Forfeited                      |   |      | (11    | )      |       |   | 32.58 |   |
| Unvested at September 30, 2009 |   |      | 558    |   |       | $      | 31.09 |   |

|                                   |                     |           |      | September 30, |      |
|----------------------------------------|--------------------------|----------------|-----------|---------------|-----------|
|                                   |                     |           |      | 2009          |      |   | 2008 |   |
| Drilling vessels and related equipment |                     |           |      |          |      |   |
|                                   | Cost                     |           |      | $             | 1,536,904 |   |   | $ | 1,106,709 |   |
|                                   | Accumulated depreciation |           |      | (356,907      | )         |   |   | (324,376 | ) |
|                                   |                     | Net book value |      |          | 1,179,997 |   |   |   | 782,333 |   |
|                                   |                     |           |      |          |      |   |   |   |   |   |
| Drill pipe                             |                     |           |      |          |      |   |   |   |
|                                   | Cost                     |           |      |          | 15,417    |   |   |   | 15,568 |   |
|                                   | Accumulated depreciation |           |      | (13,022       | )         |   |   | (12,139 | ) |
|                                   |                     | Net book value |      |          | 2,395     |   |   |   | 3,429 |   |
|                                   |                     |           |      |          |      |   |   |   |   |   |
| Furniture and other                    |                     |           |      |          |      |   |   |   |
|                                   | Cost                     |           |      |          | 9,750     |   |   |   | 9,423 |   |
|                                   | Accumulated depreciation |           |      | (7,842        | )         |   |   | (7,347 | ) |
|                                   |                     | Net book value |      |          | 1,908     |   |   |   | 2,076 |   |
|                                   |                     |           |      |          |      |   |   |   |   |   |
| NET PROPERTY AND EQUIPMENT             |                     | $              | 1,184,300 |          |      | $ | 787,838 |   |
|                                   |                     |           |      |          |      |   |   |   |   |   |

----

|                                                       |   | September 30, |    |
|------------------------------------------------------------|--------|---------------|---------|
|                                                       |   | 2009          |    |   | 2008 |   |
| 2007 credit facility, bearing interest (market adjustable) |   |          |    |   |   |   |
| at approximately 1.9% and 3.5% per annum at                |   |          |    |   |   |   |
| September 30, 2009 and September 30, 2008, respectively    |   | $             | 200,000 |   |   | $ | 170,000 |   |
| 2008 credit facility, bearing interest (market adjustable) |   |          |    |   |   |   |   |   |
| at approximately 2.2% per annum at September 30, 2009      |   |          | 75,000  |   |   |   | - |   |
|                                                       |   | $             | 275,000 |   |   | $ | 170,000 |   |
|                                                       |   |          |    |   |   |   |   |   |

----

|                   |   | Fiscal |    |   | Fiscal |   |    | Fiscal |   |
|------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                   |   | 2009   |    |   | 2008   |   |    | 2007   |   |
| Domestic income (loss) |   | $      | (9,492  | )      |   | $      | (6,480  | )      |   | $ | 8,788 |   |
| Foreign income         |   |   | 305,923 |   |   |   | 251,255 |   |   |   | 151,171 |   |
|                   |   | $      | 296,431 |   |   | $      | 244,775 |   |   | $ | 159,959 |   |
|                   |   |   |    |   |   |   |    |   |   |   |   |   |

|                |   | Fiscal |   |   | Fiscal |   |   | Fiscal |   |
|---------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                |   | 2009   |   |   | 2008   |   |   | 2007   |   |
| Current - domestic  |   | $      | 160    |   |   | $      | 209    |   |   | $ | 3,432 |   |
| Deferred - domestic |   |   | (4,335 | )      |   |   | (3,555 | )      |   |   | (1,921 | ) |
| Current - foreign   |   |   | 50,052 |   |   |   | 32,893 |   |   |   | 19,672 |   |
| Deferred - foreign  |   |   | (191   | )      |   |   | (210   | )      |   |   | (248 | ) |
|                |   | $      | 45,686 |   |   | $      | 29,337 |   |   | $ | 20,935 |   |
|                |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                    |   | September 30, |    |
|---------------------------------------------------------|--------|---------------|---------|
|                                                    |   | 2009          |    |   | 2008 |   |
| Deferred tax assets -                                   |   |          |    |   |   |   |
| Net operating loss carryforwards                        |   | $             | 3,197   |   |   | $ | 618 |   |
| Tax credit carryforwards                                |   |          | 730     |   |   |   | 730 |   |
| Stock option compensation expense                       |   |          | 4,498   |   |   |   | 3,575 |   |
| Book accruals                                           |   |          | 2,341   |   |   |   | 1,412 |   |
|                                                    |   |          | 10,766  |   |   |   | 6,335 |   |
| Deferred tax liabilities -                              |   |          |    |   |   |   |   |   |
| Difference in book and tax basis of equipment           |   |          | (16,083 | ) |   |   | (16,179 | ) |
|                                                    |   |          | (16,083 | ) |   |   | (16,179 | ) |
|                                                    |   |          |    |   |   |   |   |   |
| Net deferred tax liabilities before valuation allowance |   |          | (5,317  | ) |   |   | (9,844 | ) |
| Valuation allowance                                     |   |          | (730    | ) |   |   | (730 | ) |
|                                                    |   | $             | (6,047  | ) |   | $ | (10,574 | ) |
|                                                    |   |          |    |   |   |   |   |   |
| Net current deferred tax assets                         |   | $             | 35      |   |   | $ | 21 |   |
| Net noncurrent deferred tax liabilities                 |   |          | (6,082  | ) |   |   | (10,595 | ) |
|                                                    |   | $             | (6,047  | ) |   | $ | (10,574 | ) |
|                                                    |   |          |    |   |   |   |   |   |

----

|                                                                              |   | Fiscal |   |   | Fiscal |   |   | Fiscal |   |
|-----------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                              |   | 2009   |   |   | 2008   |   |   | 2007   |   |
| Statutory income tax rate                                                         |   |   | 35     | %      |   |   | 35     | %      |   |   | 35 | % |
| Resolution of prior period tax items                                              |   |   | (1     | )      |   |   | -      |   |   |   | (1 | ) |
| Decrease in tax rate resulting from -                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|   Foreign tax rate differentials, net of foreign tax credit utilization |   |   | (19    | )      |   |   | (23    | )      |   |   | (21 | ) |
| Effective income tax rate                                                         |   |   | 15     | %      |   |   | 12     | %      |   |   | 13 | % |

|                                                                                    | Liability for Uncertain |   |
|-----------------------------------------------------------------------------------------|-------------------------|--------|
|                                                                                    | Tax Positions           |   |
| Balance at October 1, 2008                                                              |                    | $      | 3,492 |   |
|     Increases based on tax positions related to prior fiscal years  |                    |   | 1,811 |   |
|     Decreases based on tax positions related to prior fiscal years  |                    |   | (95 | ) |
|     Increases based on tax positions related to current fiscal year |                    |   | 671 |   |
|     Decreases based on lapses of applicable statues of limitation   |                    |   | (932 | ) |
| Balance at September 30, 2009                                                           |                    | $      | 4,947 |   |
|                                                                                    |                    |   |   |   |

----

----

|                                               |   | Fiscal |    |   | Fiscal |   |   | Fiscal |   |
|----------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                               |   | 2009   |    |   | 2008   |   |   | 2007   |   |
|                                               |   |   |    |   |   |   |   |   |   |
| Noble Energy Mediterranean, Ltd.                   |   | $      | 149,603 |   |   | $      | -      |   |   | $ | - |   |
| Woodside Energy Ltd.                               |   |   | 114,637 |   |   |   | 37,542 |   |   |   | 68,032 |   |
| Sarawak Shell Bhd.                                 |   |   | 81,538  |   |   |   | 78,988 |   |   |   | 50,502 |   |
| Chevron Overseas Petroleum                         |   |   | 39,720  |   |   |   | 56,712 |   |   |   | 38,272 |   |
| ENI Spa AGIP Exploration & Production Division |   |   | -       |   |   |   | 83,308 |   |   |   | 445 |   |
| Petronas Carigali Sdn Bhd                          |   |   | -       |   |   |   | 60,182 |   |   |   | 1,713 |   |
| BHP Billiton Petoleum PTY                          |   |   | -       |   |   |   | 34,431 |   |   |   | 53,410 |   |

----

----

----

----

|                                          |   | Fiscal |      |   | Fiscal |   |      | Fiscal |   |
|-----------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                                          |   | 2009   |      |   | 2008   |   |      | 2007   |   |
| REVENUES:                                     |   |   |      |   |   |   |      |   |   |
| United States                                 |   | $      | 19,055    |   |   | $      | 16,096    |   |   | $ | 29,484 |   |
| Southeast Asia & India                    |   |   | 162,888   |   |   |   | 182,503   |   |   |   | 130,390 |   |
| Mediterranean & Black Sea                 |   |   | 169,828   |   |   |   | 141,414   |   |   |   | 112,385 |   |
| Africa                                        |   |   | 89,601    |   |   |   | 98,188    |   |   |   | 65,893 |   |
| Australia                                     |   |   | 145,135   |   |   |   | 88,403    |   |   |   | 64,885 |   |
|                                          |   | $      | 586,507   |   |   | $      | 526,604   |   |   | $ | 403,037 |   |
|                                          |   |   |      |   |   |   |      |   |   |   |   |   |
| OPERATING INCOME (EXPENSE):                   |   |   |      |   |   |   |      |   |   |   |   |   |
| United States                                 |   | $      | 48,535    |   |   | $      | (1,891    | )      |   | $ | 8,484 |   |
| Southeast Asia & India                    |   |   | 42,025    |   |   |   | 108,030   |   |   |   | 106,544 |   |
| Mediterranean & Black Sea                 |   |   | 141,133   |   |   |   | 103,934   |   |   |   | 27,471 |   |
| Africa                                        |   |   | 14,301    |   |   |   | 35,336    |   |   |   | 27,528 |   |
| Australia                                     |   |   | 84,087    |   |   |   | 30,172    |   |   |   | 13,109 |   |
| Corporate general and administrative expenses |   |   | (31,639   | )      |   |   | (30,975   | )      |   |   | (23,929 | ) |
|                                          |   | $      | 298,442   |   |   | $      | 244,606   |   |   | $ | 159,207 |   |
|                                          |   |   |      |   |   |   |      |   |   |   |   |   |
| TOTAL ASSETS:                                 |   |   |      |   |   |   |      |   |   |   |   |   |
| United States                                 |   | $      | 61,982    |   |   | $      | 208,597   |   |   | $ | 182,687 |   |
| Southeast Asia & India                    |   |   | 750,141   |   |   |   | 491,059   |   |   |   | 241,754 |   |
| Mediterranean & Black Sea                 |   |   | 225,332   |   |   |   | 78,492    |   |   |   | 126,214 |   |
| Africa                                        |   |   | 238,700   |   |   |   | 110,629   |   |   |   | 36,074 |   |
| Australia                                     |   |   | 192,330   |   |   |   | 152,031   |   |   |   | 121,968 |   |
| Other                                         |   |   | 40,917    |   |   |   | 55,789    |   |   |   | 9,027 |   |
|                                          |   | $      | 1,509,402 |   |   | $      | 1,096,597 |   |   | $ | 717,724 |   |

----

|                        |   | QUARTERS ENDED (1) |    |
|-----------------------------|--------|--------------------|---------|
|                        |   |               |    |   |   |   |   |   |   |   |   |   |
|                        |   | December 31        |    |   | March 31 |   |   | June 30 |   |   | September 30 |   |
| Fiscal 2009                 |   |               |    |   |   |   |   |   |   |   |   |   |
| Revenues                    |   | $                  | 165,504 |   |   | $ | 140,652 |   |   | $ | 149,307 |   |   | $ | 131,044 |   |
| Income before income taxes  |   |               | 91,716  |   |   |   | 71,533 |   |   |   | 73,744 |   |   |   | 59,438 |   |
| Net income                  |   |               | 78,363  |   |   |   | 56,427 |   |   |   | 67,671 |   |   |   | 48,284 |   |
| Earnings per common share - |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                       |   |               | 1.22    |   |   |   | 0.88 |   |   |   | 1.05 |   |   |   | 0.75 |   |
| Diluted                     |   |               | 1.22    |   |   |   | 0.88 |   |   |   | 1.05 |   |   |   | 0.75 |   |
|                        |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fiscal 2008                 |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                    |   | $                  | 111,048 |   |   | $ | 113,530 |   |   | $ | 141,372 |   |   | $ | 160,654 |   |
| Income before income taxes  |   |               | 43,111  |   |   |   | 46,354 |   |   |   | 68,066 |   |   |   | 87,244 |   |
| Net income                  |   |               | 38,549  |   |   |   | 41,755 |   |   |   | 60,381 |   |   |   | 74,753 |   |
| Earnings per common share - |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                       |   |               | 0.61    |   |   |   | 0.66 |   |   |   | 0.94 |   |   |   | 1.17 |   |
| Diluted                     |   |               | 0.60    |   |   |   | 0.65 |   |   |   | 0.93 |   |   |   | 1.16 |   |

| (1)   | The sum of the individual quarterly net income per common share amounts may not agree with year-to-date net income per common share as each quarterly computation is based on the weighted average number of common shares outstanding during that period. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| DIRECTORS DEBORAH A. BECK (2, 3, 4)  Corporate Executive, Retired  Milwaukee, Wisconsin ROBERT W. BURGESS (2, 3, 4)  Financial Executive, Retired  Orleans, Massachusetts GEORGE S. DOTSON (1, 2, 3, 4)  Corporate Executive, Retired  Tulsa, Oklahoma JACK E. GOLDEN (4)  Corporate Executive, Retired  Spicewood, Texas HANS HELMERICH (1, 4)  President, Chief Executive Officer  Helmerich & Payne, Inc.  Tulsa, Oklahoma JOHN R. IRWIN (1)  President, Chief Executive Officer  Atwood Oceanics, Inc.  Houston, Texas JAMES R. MONTAGUE (2, 3, 4)  Corporate Executive, Retired  Houston, Texas (1)  Executive Committee(2)  Audit Committee(3)  Compensation Committee(4)  Nominating & Corporate Governance Committee ___________________________________________  | OFFICERS JOHN R. IRWIN  President, Chief Executive Officer JAMES M. HOLLAND  Senior Vice President, Chief Financial Officer and   Secretary GLEN P. KELLEY  Senior Vice President - Marketing and Administration ALAN QUINTERO  Senior Vice President - Operations RONNIE L. HALL  Vice President - Operations BARRY M. SMITH  Vice President - Technical Services RANDAL F. PRESLEY  Vice President - Administrative Services MICHAEL A. CAMPBELL  Vice President - Controller  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|           |   | Fiscal |   |   | Fiscal |   |
|----------------|--------|--------|--------|--------|--------|--------|
|           |   | 2009   |   |   | 2008   |   |
| Quarters Ended |   | Low    |   |   | High   |   |   | Low |   |   | High |   |
| December 31    |   | $      | 12.60  |   |   | $      | 36.36 |   |   | $ | 35.75 |   |   | $ | 51.84 |   |
| March 31       |   |   | 13.03  |   |   |   | 20.55 |   |   |   | 36.39 |   |   |   | 52.70 |   |
| June 30        |   |   | 15.96  |   |   |   | 28.95 |   |   |   | 44.56 |   |   |   | 62.95 |   |
| September 30   |   |   | 21.40  |   |   |   | 36.65 |   |   |   | 32.25 |   |   |   | 63.46 |   |
|           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| GRAPH DATA                        |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------|--------|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                              |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   | Fiscal Year Ended September 30, |   |   |   |   |   |   |   |   |   |   |
| CRSP Total Returns Index for:     |   | 2004                            |   |   | 2005   |   |   | 2006   |   |   | 2007   |   |   | 2008   |   |   | 2009   |   |
|                              |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Atwood Oceanics, Inc.             |   |                            | 100.0  |   |   |   | 177.1  |   |   |   | 189.2  |   |   |   | 322.1  |   |   |   | 306.3 |   |   |   | 296.8 |   |
| NYSE/AMEX/Nasdaq Stock Markets    |   |                            | 100.0  |   |   |   | 114.5  |   |   |   | 126.4  |   |   |   | 147.3  |   |   |   | 116.4 |   |   |   | 104.3 |   |
|   (US Companies)        |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Self-determined Peer Group +      |   |                            | 100.0  |   |   |   | 160.6  |   |   |   | 172.9  |   |   |   | 256.1  |   |   |   | 215.9 |   |   |   | 185.1 |   |
|   Atwood Oceanics, Inc. |   |                            |   |   |   |   |   |   |   |   | .      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   | * Assumptions: (1) $100 invested on September 30, 2004; (2) dividends, if any, were reinvested; and (3) a September 30 fiscal year end. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

----

| BAR CHART - REVENUES ($ MILLIONS)                     |   |
|-------------------------------------------------------|--------|
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2005                                                  |   |   | 2006 |   |   | 2007 |   |   | 2008 |   |   | 2009 |   |
| $                                                     | 176.2  |   |   | $ | 276.6 |   |   | $ | 403.0 |   |   | $ | 526.6 |   |   | $ | 586.5 |   |
|  BAR CHART - CAPITAL EXPENDITURES ($ MILLIONS)   |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  | 2005   |   |   |   | 2006 |   |   |   | 2007 |   |   |   | 2008 |   |   |   | 2009 |   |
| $                                                     | 25.6   |   |   | $ | 76.1 |   |   | $ | 88.8 |   |   | $ | 328.2 |   |   | $ | 430.5 |   |
|  BAR CHART – OPERATING INCOME ($ MILLIONS) |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  | 2005   |   |   |   | 2006 |   |   |   | 2007 |   |   |   | 2008 |   |   |   | 2009 |   |
| $                                                     | 32.3   |   |   | $ | 95.8 |   |   | $ | 159.2 |   |   | $ | 244.6 |   |   | $ | 298.4 |   |
|  BAR CHART - NET INCOME ($ MILLIONS)             |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  | 2005   |   |   |   | 2006 |   |   |   | 2007 |   |   |   | 2008 |   |   |   | 2009 |   |
| $                                                     | 26.0   |   |   | $ | 86.1 |   |   | $ | 139.0 |   |   | $ | 215.4 |   |   | $ | 250.7 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----