ESV Ensco Plc New

ENSCO PLC (ESV) filed a Form 8K - Other Events - with the U.S Securities and Exchange Commission on August 18, 2016.

Ensco plc has received a notice of early termination for convenience from its customer for the ENSCO DS-7 drilling contract with an estimated effective date of early fourth quarter 2016 based on the customer's current well program.

The drilling contract obligates the customer to pay Ensco daily termination fees through November 2017. For the first 90 days following the early fourth quarter 2016 effective date, the daily termination fee is equal to the operating day rate of approximately $585,000. For the remaining term through November 2017, the daily termination fee is equal to 75% of the operating day rate, or approximately $439,000. Daily termination fees payable by the customer will be defrayed during any period that Ensco contracts the rig to a third party through November 2017. The customer is also contractually obligated to pay a demobilization fee. Given these contract terms, Ensco does not anticipate a material impact to its financial results for 2016 and 2017 as a result of this termination.

Statements contained in this Form 8-K that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements involving the estimated termination effective date and the impact of the ENSCO DS-7 drilling contract termination on financial results. Such statements are subject to numerous risks, uncertainties and assumptions. In addition, you should also carefully read and consider "Item 1A. Risk Factors" in Part I and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our most recent annual report on Form 10-K, as updated in the Company's subsequent quarterly reports on Form 10-Q, which are available on the SEC's website at www.sec.gov or on the Investor Relations section of the our website at www.enscoplc.com. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements, except as required by law.

The full text of this SEC filing can be retrieved at: http://www.sec.gov/Archives/edgar/data/314808/000031480816000396/form8k_item801ds-7terminat.htm

Any exhibits and associated documents for this SEC filing can be retrieved at: http://www.sec.gov/Archives/edgar/data/314808/000031480816000396/0000314808-16-000396-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.

(END) Dow Jones Newswires

August 18, 2016 17:17 ET (21:17 GMT)

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