Property And Equipment

9 Months Ended

Jun. 30, 2011

Property And Equipment

Property And Equipment

4. PROPERTY AND EQUIPMENT

A summary of property and equipment by classification is as follows (in thousands):

	June 30, 2011			September 30, 2010
Drilling vessels and related equipment
Cost	$	2,230,982		$	1,733,298
Accumulated depreciation		(420,237	)		(392,808	)
Net book value		1,810,745			1,340,490
Drill Pipe
Cost		15,468			15,468
Accumulated depreciation		(13,775	)		(13,563	)
Net book value		1,693			1,905
Furniture and other
Cost		6,928			7,115
Accumulated depreciation		(5,692	)		(5,549	)
Net book value		1,236			1,566
NET PROPERTY AND EQUIPMENT	$	1,813,674		$	1,343,961

New Construction Projects

During fiscal year 2008, we entered into construction contracts with Jurong Shipyard Pte. Ltd. to construct two Friede & Goldman ExD Millennium semisubmersible drilling units (the Atwood Osprey and the Atwood Condor). The Atwood Osprey was delivered in April 2011, and the Atwood Condor is scheduled for delivery in the third quarter of fiscal year 2012.

In October 2010, we entered into turnkey construction agreements with PPL Shipyard PTE LTD in Singapore ("PPL") to construct two Pacific Class 400 jack-up drilling units (the Atwood Mako and the Atwood Manta). The Atwood Mako and the Atwood Manta are scheduled for delivery in the fourth quarter of fiscal year 2012 and the first quarter of fiscal year 2013, respectively.

In January 2011, we exercised the first of three option agreements and entered into a turnkey construction agreement with PPL to construct a third Pacific Class 400 jack-up drilling unit (the Atwood Orca). The Atwood Orca is scheduled for delivery in the third quarter of fiscal year 2013.

In January 2011, we entered into a turnkey construction contract with Daewoo Shipbuilding and Marine Engineering Co., Ltd ("DSME") to construct an ultra-deepwater drillship, the Atwood Advantage, at the DSME yard in South Korea. The Atwood Advantage is scheduled for delivery in the fourth quarter of fiscal year 2013.

As of June 30, 2011, we had expended approximately $645 million towards the construction of our five drilling units currently under construction. Total remaining firm commitments for our five drilling units currently under construction were approximately $1.2 billion at June 30, 2011.