Diamond Offshore Drilling, Inc. Announces New Semisubmersible Rig Commitments

Business Wire, Nov 29, 2007

HOUSTON -- Diamond Offshore Drilling, Inc. (NYSE:DO) today announced that the Company has received a two-well contract with an estimated duration of six months from Callon Petroleum for the Ocean Victory. The rig could earn maximum total revenue of approximately $91 million. In addition, the Company announced that it has entered into a Letter of Intent for a one-year commitment for the Ocean America under which the rig could earn maximum total revenue of approximately $175 million. The LOI is subject to customary conditions, including the execution of a definitive agreement. Both rigs will operate in the U.S. Gulf of Mexico.

Diamond Offshore provides contract drilling services to the energy industry around the globe and is a leader in deepwater drilling. Maximum contract revenue as stated above assumes 100% rig utilization. Generally, rig utilization rates approach 95-98% during contracted periods; however, utilization rates can be adversely impacted by additional downtime due to unscheduled repairs, maintenance and weather. Additional information on Diamond Offshore Drilling, Inc. and access to the Company's SEC filings is available on the Internet at www.diamondoffshore.com.

Statements in this press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may include, but are not limited to, statements concerning commitments, earnings, location of operations and future contracts. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those anticipated or projected, including, among others, the risk that a conditional commitment or Letter of Intent will not be converted to a contract, the risk that full rig utilization may not be achieved during a contract period, the risk that the fleet's available days may be reduced by unscheduled downtime, the risk that these and other factors outside of the Company's control may adversely impact the amount of profit realized from a contract, the risk that the markets for the Company's services will not continue to improve, the risk that the Company's market position may deteriorate, or the risk that the Company may not be able to participate fully in any future market improvements. A discussion of additional risk factors that could impact these areas and the Company's overall business and financial performance can be found in the Company's reports and other filings with the Securities and Exchange Commission. These factors include, among others, general economic and business conditions, casualty losses, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental regulations, customer preferences and various other matters, many of which are beyond the Company's control. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.