In the Ensco deal, Chiles' stockholders will receive 0.6575 of a share of Ensco common stock plus $5.25 cash for each share of Chiles' common stock. In connection with the acquisition, it is anticipated that Ensco will issue approximately 13,350,000 shares of Ensco common stock and pay $106,576,000 in cash to the Chiles' stockholders.

The combined company will have a fleet of 56 offshore rigs, including 43 premium jackup rigs, and 28 oilfield support vessels.

Carl F. Thorne, Chairman and Chief Executive Officer of Ensco, said "We are pleased to have consummated this transaction less than three months after the merger was announced. We believe the combination of Ensco and Chiles further strengthens our position in the premium jackup market, which today represents the strongest segment of the offshore drilling market. As the result of careful planning and the full cooperation of Chiles' management, we anticipate a very prompt and efficient integration of the two organizations."

In a separate matter, Ensco also announced the completion of a new $250 million five year unsecured line of credit. This new bank facility replaces Ensco's previous $185 million line of credit which was set to mature in May 2003. There are currently no advances outstanding under the new line of credit.