SOURCE: Vantage Drilling Company

November 13, 2008 21:14 ET

Vantage Drilling Company Reports Third Quarter 2008 Results

HOUSTON, TX--(Marketwire - November 13, 2008) - Vantage Drilling Company ("Vantage") (AMEX: VTG.U) (AMEX: VTG) (AMEX: VTG.WS) reports a net loss of $4.6 million or ($.06) per diluted share for the three months ended September 30, 2008 as compared to net income of $2.1 million or $.04 per diluted share for the three months ended September 30, 2007. Net loss for the nine month period ended September 30, 2008 was $3.9 million or ($.07) per diluted share as compared to net income of $2.7 million or $.10 per diluted share for the nine month period ended September 30, 2007.

Paul Bragg, President and Chief Executive Officer, commented, "The third quarter has been a period of growth and accomplishment for Vantage as we have contracted and fully crewed our first Jackup Rig, the Emerald Driller, which will be delivered on budget and ahead of schedule."

Vantage will conduct a call at 11:00 AM ET on Friday, November 14, 2008 to discuss results and developments for the third quarter 2008. To access the conference call, U.S. callers may dial toll free (866) 550-6338 and international callers may dial (347) 284-6930. The pass code will be 2544826. 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 2544826.

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 September 30,

                                             --------------------------
                                                 2008         2007

                                             ------------  ------------
Revenue                                      $         --  $         --

Operating costs and expenses

   Operating costs                              1,997,502            --

   General and administrative                   3,412,903       255,475

   Depreciation                                    10,606         4,183

                                             ------------  ------------
        Total operating costs and expenses      5,421,011       259,658

                                             ------------  ------------

Loss from operations                           (5,421,011)     (259,658)

Other income (expense)

   Interest income                                257,477     3,376,287

   Interest expense                                    --            --

                                             ------------  ------------
        Total other income (expense)              257,477     3,376,287

                                             ------------  ------------
Income (loss) before income taxes              (5,163,534)    3,116,629

Income tax provision (benefit)                   (613,183)    1,062,046

                                             ------------  ------------
Net income (loss)                            $ (4,550,351) $  2,054,583

                                             ============  ============

Earnings Per Share

   Basic                                     $      (0.06) $       0.05

   Diluted                                   $      (0.06) $       0.04



                          VANTAGE DRILLING COMPANY
                  (A Corporation in the Development Stage)
                    CONSOLIDATED STATEMENT OF OPERATIONS
                                (Unaudited)

                                                                 For the
                                                                 Period
                                         Nine Months Ended     September 8,
                                           September 30,           2006
                                     ------------------------
                                                               (inception)
                                                                    to
                                                                September
                                         2008         2007      30, 2008
                                     -----------  -----------  -----------
Revenue                              $        --  $        --  $        --
Operating costs and expenses

  Operating costs                      2,242,733           --    2,242,733
  General and administrative           5,863,406      399,452    6,800,107
  Depreciation                            22,954        5,606       33,375
                                     -----------  -----------  -----------
    Total operating costs and
     expenses                          8,129,093      405,058    9,076,215
                                     -----------  -----------  -----------
Loss from operations                  (8,129,093)    (405,058)  (9,076,215)
Other income (expense)

 Interest income                       4,088,891    4,505,092   11,787,951
 Interest expense                             --           --           --
                                     -----------  -----------  -----------
    Total other income (expense)       4,088,891    4,505,092   11,787,951
                                     -----------  -----------  -----------
Income (loss) before income taxes     (4,040,202)   4,100,034    2,711,736
Income tax provision (benefit)          (129,815)   1,397,412    2,168,749
                                     -----------  -----------  -----------
Net income (loss)                    $(3,910,387) $ 2,702,622  $   542,987
                                     ===========  ===========  ===========

Earnings Per Share
  Basic                              $     (0.07) $      0.12  $      0.02
  Diluted                            $     (0.07) $      0.10  $      0.01




                                 VANTAGE DRILLING COMPANY
                         (A Corporation in the Development Stage)
                                CONSOLIDATED BALANCE SHEET


                                              September 30,  December 31,
                                                  2008           2007
                                              -------------  -------------
                                               (Unaudited)
                        ASSETS

Current assets:
  Cash and cash equivalents                   $  13,046,376  $   1,262,625
  Restricted cash                                 1,100,000             --
  Restricted cash held in trust account                  --    273,109,051
  Prepaid expenses and other current assets         383,431         87,075
                                              -------------  -------------
    Total current assets                         14,529,807    274,458,751
                                              -------------  -------------
Property and Equipment:
 Property and equipment                         596,954,528        122,072
  Accumulated depreciation                          (33,376)       (10,421)
                                              -------------  -------------
    Property and equipment, net                 596,921,152        111,651
                                              -------------  -------------
  Other Assets:
    Deferred income taxes                         1,831,830        311,607
    Other assets                                  8,690,542        756,771
                                              -------------  -------------
      Total other assets                         10,522,372      1,068,378
                                              -------------  -------------
Total assets:                                 $ 621,973,331  $ 275,638,780
                                              =============  =============

         LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
  Accounts payable                            $   2,025,716  $      61,518
  Accrued liabilities                             2,163,445        578,618
  Deferred underwriters fee                              --      8,280,000
  Income taxes payable                                   --        310,171
                                              -------------  -------------
    Total current liabilities                     4,189,161      9,230,307
                                              -------------  -------------
                                                 79,000,000             --
Long-term debt
 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                      541,196,324    185,159,318
Earnings accumulated during the development
 stage                                           (2,487,862)     1,919,815
                                              -------------  -------------
  Total stock holders’ equity                   538,784,170    187,121,508
                                              -------------  -------------
Total liabilities and stockholders’ equity:   $ 621,973,331  $ 275,638,780
                                              =============  =============



                           VANTAGE DRILLING COMPANY
                  (A Corporation in the Development Stage)
                    CONSOLIDATED STATEMENT OF CASH FLOWS
                                (Unaudited)


                                                                For the
                                                                 Period
                                   Nine Months Ended          September 8,
                                     September 30,                2006
                           ---------------------------------
                                                              (inception)
                                                                   to
                                                               September
                                2008             2007          30, 2008
                           --------------- --------------- ---------------
CASH FLOWS FROM OPERATING
 ACTIVITIES

Net income (loss)            $  (3,910,387)  $   2,702,622   $     542,987
Adjustments to reconcile net
 income to net cash provided
 by (used in) operating
 activities:

  Depreciation expense              22,954           5,606          33,375

  Amortization of debt
   financing costs                 256,529              --         256,529

  Stock-based
   compensation expense          1,286,099              --       1,286,099

  Deferred income tax
   expense                      (1,520,223)       (134,319)     (1,831,830)

Changes in operating assets
 and liabilities:

  Restricted cash               (1,100,000)             --      (1,100,000)

  Prepaid expenses and
   other assets                   (710,021)         47,484        (797,097)

  Accounts payable               1,964,198       1,642,790       2,025,716

  Accrued liabilities            1,274,657              --       2,163,446
                           --------------- --------------- ---------------
   Net cash provided by
    operating activities        (2,436,194)      4,264,183       2,579,225
                           --------------- --------------- ---------------

CASH FLOWS FROM INVESTING
 ACTIVITIES

Acquisition of assets         (213,396,605)             --    (213,396,605)

Additions to property and
 equipment                    (108,435,850)        (99,477)   (108,557,922)

Deferred acquisition costs         756,771              --              --

Restricted cash held in
 trust account                 273,109,051    (272,215,092)             --
                           --------------- --------------- ---------------
   Net cash provided by
    (used in) investing
    activities                 (47,966,633)   (272,314,569)   (321,954,527)
                           --------------- --------------- ---------------

CASH FLOWS FROM FINANCING
 ACTIVITIES

Proceeds from borrowings
 under credit agreement         79,000,000              --      79,000,000

Debt issuance costs             (8,533,406)             --      (8,533,406)

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                   --        (275,000)       (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        62,186,578     270,020,900     332,421,678
                           --------------- --------------- ---------------
   Net increase (decrease)
    in cash and cash
    equivalents                 11,783,751       1,970,514      13,046,376

Cash and cash equivalents--
 beginning of period             1,262,625          33,790              --
                           --------------- --------------- ---------------
Cash and cash equivalents--
 end of period             $    13,046,376 $     2,004,304 $    13,046,376
                           =============== =============== ===============



                              VANTAGE DRILLING COMPANY
                      (A Corporation in the Development Stage)
                        CONSOLIDATED STATEMENT OF CASH FLOWS
                             SUPPLEMENTAL INFORMATION
                                    (Unaudited)


                                       Nine Months Ended   For the Period
                                          September 30,      September 8,
                                                                 2006
                                     ----------------------
                                                              (inception)
                                                                  to
                                                               Sept. 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