Pacific Drilling Receives Approval of First Day Motions

LUXEMBOURG–(BUSINESS WIRE)–Pacific Drilling S.A. (OTCPink: PACDQ) (“Pacific Drilling” or the
“Company”) today announced that the United States Bankruptcy Court for
the Southern District of New York has granted the relief requested by
the Company in certain first day motions related to ordinary course
business activities, subject to certain modifications at the request of
the Court, the United States Trustee and stakeholders. The approved
motions give us the authority to, among other things, continue to pay
employee wages and benefits without interruption, to utilize our current
cash management system, and to pay certain foreign and critical vendors
for goods and services provided prior to the petition date. All vendors
will be paid in full and in cash on normal payment terms for all goods
and services provided on or after the petition date.

Paul Reese, Chief Executive Officer of Pacific Drilling, said, “With
these approvals, the Company will continue normal operations as we
implement a comprehensive financial restructuring under the protection
of Chapter 11. Importantly, I would like to thank our employees,
customers and vendors for working constructively with us during this
important period for the Company.”

Additional details can be found on the Company’s website, www.pacificdrilling.com/restructuring
or via the Company’s restructuring information line at: +1 866-396-3566
(Toll Free) or +1 646-795-6175 (International Number).

About Pacific Drilling

With its best-in-class drillships and highly experienced team, Pacific
Drilling is committed to becoming the industry’s preferred
high-specification, floating-rig drilling contractor. Pacific Drilling’s
fleet of seven drillships represents one of the youngest and most
technologically advanced fleets in the world. For more information about
Pacific Drilling, including our current Fleet Status, please visit our
website at www.pacificdrilling.com.

Forward-Looking Statements

Certain statements and information contained in this press release
constitute “forward-looking statements” within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995, and are generally identifiable by the use of words such as
“believe,” “estimate,” “expect,” “forecast,” “ability to,” “plan,”
“potential,” “projected,” “target,” “would,” or other similar words,
which are generally not historical in nature.

Forward-looking statements express current expectations or forecasts of
possible future results or events, including future financial and
operational performance; revenue efficiency levels; market outlook;
forecasts of trends; future client contract opportunities; contract
dayrates; our business strategies and plans and objectives of
management; estimated duration of client contracts; backlog; expected
capital expenditures; projected costs and savings; the potential impact
of our Chapter 11 proceedings on our future operations and ability to
finance our business; and our ability to emerge from our Chapter 11
proceedings and continue as a going concern.

Although the Company believes that the assumptions and expectations
reflected in our forward-looking statements are reasonable and made in
good faith, these statements are not guarantees and actual future
results may differ materially due to a variety of factors. These
statements are subject to a number of risks and uncertainties, many of
which are beyond the Company’s control.

Important factors that could cause actual results to differ materially
from our expectations include: the global oil and gas market and its
impact on demand for our services; the offshore drilling market,
including reduced capital expenditures by our clients; changes in
worldwide oil and gas supply and demand; rig availability and supply and
demand for high-specification drillships and other drilling rigs
competing with our fleet; costs related to stacking of rigs; our ability
to enter into and negotiate favorable terms for new drilling contracts
or extensions; our substantial level of indebtedness; possible
cancellation, renegotiation, termination or suspension of drilling
contracts as a result of mechanical difficulties, performance, market
changes or other reasons; our ability to continue as a going concern in
the long term, including our ability to confirm a plan of reorganization
that restructures our debt obligations to address our liquidity issues
and allows emergence from our Chapter 11 proceedings; our ability to
obtain Bankruptcy Court approval with respect to motions or other
requests made to the Bankruptcy Court in our Chapter 11 proceedings,
including maintaining strategic control as debtor-in-possession; our
ability to negotiate, develop, confirm and consummate a plan of
reorganization; the effects of our Chapter 11 proceedings on our
operations and agreements, including our relationships with employees,
regulatory authorities, customers, suppliers, banks and other financing
sources, insurance companies and other third parties; the effects of our
Chapter 11 proceedings on our Company and on the interests of various
constituents, including holders of our common shares and debt
instruments; Bankruptcy Court rulings in our Chapter 11 proceedings as
well as the outcome of all other pending litigation and arbitration and
the outcome of our Chapter 11 proceedings in general; the length of time
that we will operate under Chapter 11 protection and the continued
availability of operating capital during the pendency of the
proceedings; risks associated with third-party motions in our Chapter 11
proceedings, which may interfere with our ability to confirm and
consummate a plan of reorganization and restructuring generally;
increased advisory costs to execute a plan of reorganization; our
ability to access adequate debtor-in-possession financing or use cash
collateral; the potential adverse effects of our Chapter 11 proceedings
on our liquidity, results of operations, or business prospects;
increased administrative and legal costs related to our Chapter 11
proceedings and other litigation and the inherent risks involved in a
bankruptcy process; the cost, availability and access to capital and
financial markets, including the ability to secure new financing after
emerging from our Chapter 11 proceedings; and the other risk factors
described in our 2016 Annual Report and our Current Reports on Form 6-K.
These documents are available through our website at www.pacificdrilling.com
or through the SEC’s website at www.sec.gov.

The Company does not undertake any obligation to publicly update or
revise any forward-looking statements after the date they are made,
whether as a result of new information, future events or otherwise.

Contacts

Investors:
Pacific Drilling S.A.
Johannes (John) P. Boots,
+352 26845781
[email protected]
or
Media:
Pacific
Drilling S.A.
Amy L. Roddy, +1 713-334-6662
[email protected]