ENSCO PLC (ESV) filed a Form 8K - Other Events - with the U.S
Securities and Exchange Commission on October 16, 2014.
On September 30, 2014, we sold jackup rigs ENSCO 83, ENSCO 89,
ENSCO 93 and ENSCO 98, all of which are currently contracted to
Petroleos Mexicanos ("Pemex"), for proceeds of $212 million. The
carrying value of these assets was $170 million.
In connection with the rig sales, we executed charter agreements
with the buyer whereby Ensco will continue to operate the rigs for
the duration of the Pemex contracts. As a result, we accounted for
the transaction as a sale leaseback.
After considering commissions and other costs totaling $5
million, we estimate the transaction will result in a gain of $37
million, of which $8 million will be recorded during the third
quarter of 2014. The remaining $29 million gain will be amortized
over the remainder of the charter terms. These gains will reduce
Jackup segment contract drilling expense.
Beginning October 1, 2014, operating results for these four rigs
will be reported in the Other segment, including charter fees of
approximately $39,000 per day per rig that will increase contract
drilling expense.
The full text of this SEC filing can be retrieved at:
http://www.sec.gov/Archives/edgar/data/314808/000031480814000201/a10-16x148xkfsr.htm
Any exhibits and associated documents for this SEC filing can be
retrieved at:
http://www.sec.gov/Archives/edgar/data/314808/000031480814000201/0000314808-14-000201-index.htm
Public companies must file a Form 8-K, or current report, with
the SEC generally within four days of any event that could
materially affect a company's financial position or the value of
its shares.
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