Atwood Oceanics, Inc. Announces Public Offering of

Houston, January 9, 2017 - Atwood Oceanics, Inc. (NYSE: ATW ) ("Atwood" or the "Company") today announced that it has commenced an underwritten public offering of 13,500,000 shares of common stock. Atwood expects to grant the underwriters a 30-day option to purchase up to 2,025,000 additional shares of common stock. Atwood expects to use the net proceeds from the offering for general corporate purposes, which may include the repayment of borrowings under its credit facility, the funding of future purchases of its outstanding 6.50% Senior Notes due 2020, working capital and capital expenditures, and otherwise to enhance its liquidity.

Goldman, Sachs & Co. is acting as book-running manager for the offering. The offering is being made pursuant to an effective shelf registration statement on Form S-3 (Registration No. 333-209647) filed by Atwood with the Securities and Exchange Commission ("SEC") and only by means of a prospectus supplement and accompanying prospectus. When available, copies of the preliminary prospectus supplement, prospectus supplement and the accompanying base prospectus related to the offering may be obtained for free by visiting EDGAR on the SEC's website at www.sec.gov or by contacting Goldman, Sachs & Co., Attention: Prospectus Department, 200 West Street, New York, New York 10282, or by telephone at (866) 471-2526, facsimile at (212) 902-9316, or email: prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, or any solicitation of an offer to buy, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Atwood Oceanics, Inc. is a leading offshore drilling company engaged in the drilling and completion of exploration and developmental wells for the global oil and gas industry. The Company currently owns 10 mobile offshore drilling units and is constructing two ultra-deepwater drillships. The Company was founded in 1968 and is headquartered in Houston, Texas. Atwood Oceanics, Inc. common stock is traded on the New York Stock Exchange under the symbol "ATW."

Mark W. Smith Senior Vice President and CFO (281) 749-7840