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HOUSTON, Aug. 14 (UPI) -- Rig company Hercules Offshore announced it filed for bankruptcy as part of a financial restructuring effort in an era of lower crude oil prices. "We are working toward a new capital structure which will provide a better foundation for Hercules to meet the challenges in the global offshore drilling market due to the down cycle in crude oil prices," Hercules President and Chief Executive Officer John T. Rynd said in a statement.
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In its quarterly report filed last month, Hercules said its net operating days in the United States declined by more than half year-on-year and the average day rate to lease a rig declined from $108,237 during second quarter 2014 to $92,538.
Internationally, Hercules recorded an operating loss of $40.5 million compared with income of $6.7 million in second quarter 2014. The company posted a first quarter net loss of $57.1 million, compared to net income of $19.9 million during the first quarter of 2014.
Hercules said it filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware in Wilmington.
The company, which has headquarters in Houston, announced plans to start the proceedings in June.
Hercules said it has enough resources and recurring revenue on hand to meet its obligations to its current customers.
"Hercules will remain focused on maintaining the highest quality of service and safety in daily operations, meeting customer needs and keeping employees and creditors informed as the restructuring progresses," it said in a statement.
The company in 2013 spent more than $3 million salvage costs incurred on its Hercules 265 rig.
Rig 265 was damaged when a natural gas cloud ignited after Walter Oil & Gas Corp. reported it lost control of a well in the Gulf of Mexico while preparing it for production.
No major environmental damage was associated with the July release.
