EXHIBIT 99.1
HOUSTON, TEXAS
7 FEBRUARY 2001

FOR IMMEDIATE RELEASE

         ATWOOD OCEANICS, INC., HOUSTON-BASED INTERNATIONAL DRILLING CONTRACTOR,
ANNOUNCED TODAY IT EARNED NET INCOME OF $8,040,000 OR $.58 PER DILUTED SHARE, ON
CONTRACT  REVENUES OF  $39,440,000  FOR THE QUARTER  ENDED  DECEMBER  31,  2000,
COMPARED  TO NET INCOME OF  $5,053,000  OR $.36 PER  DILUTED  SHARE ON  CONTRACT
REVENUES OF $31,184,000 FOR THE QUARTER ENDED DECEMBER 31, 1999.

         AS A RESULT OF  CHANGES  EFFECTIVE  OCTOBER  1,  2000 IN THE  COMPANY'S
DEPRECIATION  POLICY  RELATING  TO CERTAIN  RIGS,  DEPRECIATION  EXPENSE FOR THE
QUARTER  ENDED  DECEMBER  31, 2000 WAS REDUCED BY  APPROXIMATELY  $1.7  MILLION,
RESULTING IN AN  ENHANCEMENT  TO NET INCOME FOR THE QUARTER OF $.08 PER DILUTIVE
SHARE.

                                       FOR THE THREE MONTHS ENDED DECEMBER 31,
                                           2000                     1999
                                    --------------------    --------------------

CONTRACT REVENUES                      $39,440,000               $31,184,000
INCOME BEFORE INCOME TAXES              12,555,000                 8,268,000
PROVISION FOR INCOME TAXES              (4,515,000)               (3,215,000)
NET INCOME                               8,040,000                 5,053,000
EARNINGS PER COMMON SHARE -
      BASIC                                    .58                       .37
      DILUTED                                  .58                       .36
WEIGHTED AVERAGE SHARES
   OUTSTANDING -
      BASIC                             13,823,000                13,676,000
      DILUTED                           13,930,000                13,859,000



                                                        CONTACT:  JIM HOLLAND
                                                               (281) 749-7804