MercoPress. South Atlantic News Agency

Falklands’ oil company contracts exploration rig to operate end of 2011

Eirik Raude will drill for two wells and a further optional three

DryShips has won an exploration contract to drill offshore the Falkland Islands. The Greek company received a letter of intent for the Eirik Raude and will drill two weels for approximately 90 days beginning in the fourth quarter of 2011.

The 77 million US dollars contract will have three further optional wells that could extend the contract by 135 days.

The contract from a British exploration company will begin immediately after completion of the current contract, which is expected to end in October 2011.

DryShips chairman and CEO George Economou said the rate achieved reflects the unique nature of the two harsh weather semi-submersibles and a strengthening ultra-deepwater drilling market.

''We see strong demand for these two rigs and for our state-of-the-art sixth generation drillships, and are confident that all our available capacity in 2011 will secure employment at attractive rates,'' Economou said.

DryShips Inc., based in Greece, is an owner and operator of drybulk carriers and offshore oil deep water drilling units that operate worldwide. As of the day of this release, DryShips owns a fleet of 39 drybulk carriers (including newbuildings), comprising 7 Capesize, 30 Panamax and 2 Supramax, with a combined deadweight tonnage of over 3.5 million tons and 6 offshore oil deep water drilling units, comprising of 2 ultra deep water semisubmersible drilling rigs and 4 ultra deep water newbuilding drillships.

DryShips's common stock is listed on the NASDAQ Global Select Market where it trades under the symbol “DRYS.”