SOURCE: Vantage Drilling Company

August 15, 2008 00:25 ET

Vantage Drilling Company Reports Second Quarter 2008 Results

HOUSTON, TX--(Marketwire - August 15, 2008) - Vantage Drilling Company ("Vantage") (AMEX: VTG.U) (AMEX: VTG) (AMEX: VTG.WS) reports a net loss of $531,000 or $.01 per share for the three months ended June 30, 2008 as compared to net income of $648,000 or $.03 per share for the three months ended June 30, 2007. Net income for the six month periods ended June 30, 2008 and 2007 were $640,000 or $.01 per diluted share and $648,000 or $.04 per diluted share, respectively.

Paul Bragg, President and Chief Executive Officer, commented, "The second quarter has been a tremendous period of transformation for Vantage as we completed our acquisition of OGIL, established our operating base in Singapore and completed the build-up of our operations management team."

Milestones completed during the second quarter:

--  Completed the acquisition of Offshore Group Investment Limited
    ("OGIL") which provided Vantage four Baker Marine Pacific Class 375 jackup
    rigs that are currently under construction, a contract for the purchase of
    a 12,000 ft. ultra-deepwater high-specification drillship that is currently
    under development and an option to purchase a second 12,000 ft. ultra-
    deepwater high-specification drillship.
    
--  Closed a $440.0 million credit facility to finance the completion of
    the jackup rigs.
    
--  Established our operating base in Singapore to support our
    construction oversight and regional operations.
    
--  Launched the Emerald Driller, the first of our jackup rigs scheduled
    for delivery in December 2008, and commenced the commissioning process.
    
--  Keel laying on the Aquamarine Driller and Topaz Driller, which are
    scheduled for delivery in September and December 2009, respectively,
    bringing all of our jackup rigs into the construction phase.
    

Vantage will conduct a call at 11:00 AM EDT on Friday, August 15, 2008 to discuss results and developments for the second quarter 2008. To access the conference call, U.S. callers may dial toll free (877) 719-9796 and international callers may dial (719) 325-4801. Please call ten minutes ahead of time to ensure proper connection. A replay of the conference call will be available for two weeks following the call and can be accessed by dialing (888) 203-1112 for U.S. callers and (719) 457-0820 for international callers. The access code for the replay is 3685074.

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with four Baker Marine Pacific Class 375 jackup drilling rigs and one ultra-deepwater drillship currently under development. Vantage also has an option for the purchase of a second ultra-deepwater drillship that is currently under construction.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements.


                       VANTAGE DRILLING COMPANY
               (A Corporation in the Development Stage)

                 CONSOLIDATED STATEMENT OF OPERATIONS
                             (Unaudited)

                                              Three Months Ended June 30,
                                            ------------------------------
                                                 2008            2007
                                            --------------  --------------
 Revenue                                    $           --  $           --
 Operating expenses
     General and administrative                  1,975,656         143,868
     Depreciation                                    6,117           1,423
                                            --------------  --------------
        Total operating expenses                 1,981,773         145,291
                                            --------------  --------------

 Loss from operations                           (1,981,773)       (145,291)
 Other income (expense)
     Interest income                             1,326,367       1,128,805
     Interest expense                                   --              --
                                            --------------  --------------
        Total other income (expense)             1,326,367       1,128,805
                                            --------------  --------------

 Income (loss) before income taxes                (655,406)        983,514
 Income tax provision (benefit)                   (124,495)        335,366
                                            --------------  --------------
 Net income (loss)                          $     (530,911) $      648,148
                                            ==============  ==============

 Earnings Per Share
 Basic                                      $        (0.01) $         0.03
 Diluted                                    $        (0.01) $         0.03



                       VANTAGE DRILLING COMPANY
               (A Corporation in the Development Stage)

                 CONSOLIDATED STATEMENT OF OPERATIONS
                             (Unaudited)

                                                           For the Period
                          Six Months Ended June 30,       September 8, 2006
                      ----------------------------------   (inception) to
                            2008             2007           June 30, 2008
                      ----------------  ----------------  ----------------
Revenue               $             --  $             --  $             --
Operating expenses
  General and
   administrative            2,695,733           143,977         3,632,435
  Depreciation                  12,348             1,423            22,769
                      ----------------  ----------------  ----------------
    Total operating
     expenses                2,708,081           145,400         3,655,204
                      ----------------  ----------------  ----------------

Loss from operations        (2,708,081)         (145,400)       (3,655,204)
Other income (expense)
  Interest income            3,831,414         1,128,805        11,530,474
  Interest expense                  --                --                --
                      ----------------  ----------------  ----------------
    Total other
     income (expense)        3,831,414         1,128,805        11,530,474
                      ----------------  ----------------  ----------------

Income before income
 taxes                       1,123,333           983,405         7,875,270
Income tax provision           483,368           335,366         2,781,932
                      ----------------  ----------------  ----------------
Net income            $        639,965  $        648,039  $      5,093,338
                      ================  ================  ================

Earnings Per Share
Basic                 $           0.01  $           0.05  $           0.17
Diluted               $           0.01  $           0.04  $           0.15




                       VANTAGE DRILLING COMPANY
               (A Corporation in the Development Stage)

                      CONSOLIDATED BALANCE SHEET

                                               June 30,      December 31,
                                                 2008            2007
                                            --------------  --------------
                                              (Unaudited)
                          ASSETS
CURRENT ASSETS
  Cash and cash equivalents                 $   77,314,358  $    1,262,625
  Restricted cash                                  600,000              --
  Restricted cash held in trust account                 --     273,109,051
  Prepaid expenses and other assets                633,754          87,075
                                            --------------  --------------
      Total current assets                      78,548,112     274,458,751
Deferred income taxes                            1,125,432         311,607
Other assets                                     8,532,799         756,771
Property and equipment, net of accumulated
 depreciation of $22,769 and $10,421           490,559,453         111,651
                                            --------------  --------------
 TOTAL ASSETS                               $  578,765,796  $  275,638,780
                                            ==============  ==============

      LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
  Accounts payable                          $    1,001,749  $       61,518
  Accrued liabilities                            1,674,549         578,618
  Deferred underwriters fee                             --       8,280,000
  Income taxes payable (receivable)               (142,652)        310,171
                                            --------------  --------------
      Total current liabilities                  2,533,646       9,230,307
                                            --------------  --------------

Long-term debt                                  34,000,000              --
Common stock, subject to possible redemption,
 10,346,550 shares at redemption value                  --      79,286,965
Commitments and contingencies                           --              --
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value, 1,000,000
 shares authorized, none issued or outstanding          --              --
Common stock, $0.001 par value, 400,000,000
 and 100,000,000 shares authorized, and
 75,708,331 and 42,375,000 shares issued and
 outstanding                                        75,708          42,375
Additional paid-in capital                     540,093,953     185,159,318
Earnings accumulated during the development
 stage                                           2,062,489       1,919,815
                                            --------------  --------------
Total stockholders' equity                     542,232,150     187,121,508
                                            --------------  --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $  578,765,796  $  275,638,780
                                            ==============  ==============



                       VANTAGE DRILLING COMPANY
               (A Corporation in the Development Stage)

                 CONSOLIDATED STATEMENT OF CASH FLOWS
                              (Unaudited)

                                                                For the
                                                                 Period
                                                              September 8,
                                   Six Months Ended June 30,      2006
                                  --------------------------  (inception)
                                                              to June 30,
                                      2008          2007          2008
                                  ------------  ------------  ------------
CASH FLOWS FROM
 OPERATING ACTIVITIES
Net income                        $    639,965  $    648,039  $  5,093,338
Adjustments to reconcile net
 income to net cash provided by
 (used in) operating activities:
  Depreciation expense                  12,348         1,423        22,769
  Stock-based compensation
   expense                             183,728            --       183,728
  Deferred income tax expense         (813,825)           --    (1,125,432)
Changes in operating assets and
 liabilities:
  Restricted cash                     (600,000)           --      (600,000)
  Prepaid expenses and other
   assets                             (606,098)     (183,184)     (693,173)
  Accounts payable                     940,231       626,087     1,001,749
  Accrued liabilities                  643,108            --     1,531,897
                                  ------------  ------------  ------------
    Net cash provided by
     operating activities              399,457     1,092,365     5,414,876
                                  ------------  ------------  ------------
CASH FLOWS FROM INVESTING
 ACTIVITIES
Acquisition of assets             (213,396,605)           --  (213,396,605)
Additions to property and
 equipment                          (2,063,545)      (79,689)   (2,185,617)
Deferred acquisition costs             756,771       180,276            --
Restricted cash held in trust
 account                           273,109,051  (269,960,000)           --
                                  ------------  ------------  ------------
    Net cash provided by (used
     in) investing activities       58,405,672  (269,859,413) (215,582,222)
                                  ------------  ------------  ------------
CASH FLOWS FROM FINANCING
 ACTIVITIES
Proceeds from borrowings under
 credit agreement                   34,000,000            --    34,000,000
Debt issuance costs                 (8,473,380)           --    (8,473,380)
Advances from stockholders of
 OGIL                                3,300,000            --     3,300,000
Repayments of advances from
 stockholders of OGIL               (3,300,000)           --    (3,300,000)
Proceeds from issuance of common
 stock to initial stockholders              --            --        25,000
Proceeds from issuance of common
 stock and warrants in private
 placement                                  --     6,000,000     6,000,000
Proceeds from issuance of common
 stock and warrants to public
 stockholders                               --   255,930,000   255,930,000
Proceeds from issuance of option
 to purchase common stock and
 warrants to underwriters                   --           100           100
Proceeds from notes
 payable-stockholders                       --        85,800       275,000
Repayment of notes
 payable-stockholders                       --       (50,000)     (275,000)
Proceeds from deferred
 underwriters fee                           --     8,280,000     8,280,000
Repayment of deferred
 underwriters fee                   (8,280,000)           --    (8,280,000)
Redemption of common stock                 (16)           --           (16)
                                  ------------  ------------  ------------
    Net cash provided by
     financing activities           17,246,604   270,245,900   287,481,704
                                  ------------  ------------  ------------
    Net increase (decrease) in
     cash and cash equivalents      76,051,733     1,478,852    77,314,358
Cash and cash equivalents --
 beginning of period                 1,262,625        33,790            --
                                  ------------  ------------  ------------
Cash and cash equivalents -- end
 of period                        $ 77,314,358  $  1,512,642  $ 77,314,358
                                  ============  ============  ============





                           VANTAGE DRILLING COMPANY
                   (A Corporation in the Development Stage)

                     CONSOLIDATED STATEMENT OF CASH FLOWS
                          SUPPLEMENTAL INFORMATION
                                 (Unaudited)

                                                                For the
                                                                 Period
                                                              September 8,
                                Six Months Ended June 30,         2006
                            -------------------------------   (inception)
                                                              to June 30,
                                 2008            2007             2008
                            --------------  --------------- --------------
SUPPLEMENTAL CASH FLOW
 INFORMATION
Cash paid for taxes         $    1,750,016  $            -- $    4,050,016
Non-cash investing and
 financing transactions
  Issuance of common stock
   and warrants for
   acquisition              $ (275,000,000) $            -- $ (275,000,000)
  Increase in common stock,
   subject to possible
   redemption                           --       76,753,407             --

Contact Information

  • Public & Investor Relations Contact:
    Paul A. Bragg
    Chairman and Chief Executive Officer
    Vantage Drilling Company
    (281) 404-4700