The global law firm of Thompson & Knight LLP has provided bankruptcy advice to Hercules Offshore, Inc. in an Asset Purchase Agreement with Seahawk Drilling, Inc. and its affiliates pursuant to which Seahawk sold substantially all of its assets to Hercules. The transaction, which was signed on February 11, 2011, received bankruptcy court approval on April 5, 2011, and closed on April 27, 2011.

The agreement involves the purchase of 20 jackup rigs located in the U.S. Gulf of Mexico and related assets from Seahawk Drilling for approximately 22.3 million shares of Hercules Offshore common stock and $25 million in cash. Following this transaction, there will be a total of approximately 137.2 million outstanding shares of Hercules Offshore, Inc.

The purchase price will primarily be used to pay off Seahawk’s Debtor-in-Possession (“DIP”) loan, which Seahawk has secured in connection with its bankruptcy filing as well as to make distributions to creditors and equity interests, as appropriate.

The Thompson & Knight team representing Hercules Offshore included Rhett G. Campbell, Millie Aponte Sall, and Randy Sawyer in the Firm’s Houston office. Thompson & Knight provided bankruptcy counseling, and Andrews Kurth LLP provided corporate advice to Hercules Offshore in connection with the transaction. Jefferies & Company provided a fairness opinion to the Hercules Offshore Board of Directors.