The second generation rig is presently idle, while the third generation unit is under charter to an affiliate of Transocean Sedco Forex through September 2001. Additionally, Pride has agreed to acquire a 250-foot water depth jackup rig, which it has been operating for the past year under a bareboat charter agreement. The jackup is an independent leg, cantilevered model which was rebuilt in 1998 and returned to service in 1999.
Pride currently operates the rig offshore Bangladesh.
The transactions are expected to close early in the fourth quarter of 2000, subject to completion of definitive purchase documents. While the market for mid-water depth semisubmersibles has yet to recover as significantly as other offshore drilling segments, we believe that this investment will provide us substantial leverage to improving dayrates when such a recovery occurs. The remaining charter period of about one year on the third generation rig will provide us with some immediate cash flow, as well. The jackup rig was substantially rebuilt and re-equipped just two years ago and we have had excellent operating performance from it. The owner, an exploration and production company, decided to divest the rig, and we are pleased to acquire it.