Atwood Announces New Commitments for Atwood Eagle and Richmond

HOUSTON, Jan. 9 /PRNewswire-FirstCall/ -- Atwood Oceanics, Inc. (Houston based International Offshore Drilling Contractor) announced today that the ATWOOD EAGLE's remaining drilling commitment with BHP Billiton Petroleum Pty ("BHPB") is expected to extend to the end of May 2008. The remaining wells drilled under this contract will have a dayrate of approximately $170,000. Following completion of the BHPB program, the rig will drill one (1) well for ENI (expected to take around forty-five (45) days to complete) at a dayrate of $360,000 and then commence its two (2) year commitment with Woodside Energy Ltd ("Woodside") at a dayrate of $405,000. Following completion of the Woodside drilling program (estimated July 2010), Chevron Australia Pty. Ltd. ("Chevron") has committed to use the rig at a dayrate of approximately $430,000/$450,000 (subject to adjustment for cost escalation) until our new semisubmersible drilling unit being built in Singapore is ready to commence its drilling program commitment in Australia with Chevron. Chevron has an option to continue to use the ATWOOD EAGLE for a mutually agreed term after the new semisubmersible drilling unit arrives in Australia.

The RICHMOND continues to undergo its life enhancement upgrade which is now expected to be completed in mid-February 2008 at a cost of approximately $17 million. Following the completion of this life enhancing upgrade, the rig has contractual commitments with Helis Oil & Gas ("Helis") and Contango Operations, Inc. ("Contango") both of which have engaged Applied Drilling Technology Inc. ("ADTI") to manage the drilling operations. The Helis contractual commitment involves the drilling of one (1) well at a dayrate of $80,000 for approximately the first thirty (30) days and a dayrate of $65,000 for any additional time required to complete the drilling program. The Contango contractual commitment involves the drilling of two (2) firm wells plus an option to drill one (1) additional well at a dayrate of $65,000 for all three (3) wells. We expect to drill the Helis commitment immediately following the rig's shipyard work; however, this commitment could be deferred to a later date in 2008. If all four (4) wells are drilled, these drilling commitments could extend to September 2008.

Statements contained in this report with respect to the future are forward-looking statements. These statements reflect management's reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors including; the Company's dependence on the oil and gas industry; the risks involved the construction of a rig; competition; operating risks; risks involved in foreign operations; risks associated with possible disruption in operations due to terrorism; risks associated with a possible disruption in operations due to a war with Iraq; and governmental regulations and environmental matters. A list of additional risk factors can be found in the Company's annual report on Form 10-K for the year ended September 30, 2007, filed with the Securities and Exchange Commission.