Exhibit 99.1

Hercules Offshore Announces Third Quarter 2010 Results

HOUSTON, October 27, 2010 — Hercules Offshore, Inc. (Nasdaq: HERO) today reported a loss from continuing operations of $15.1 million, or $0.13 per diluted share, on revenues of $168.5 million for the third quarter 2010, compared with a loss from continuing operations of $37.2 million, or $0.38 per diluted share, on revenues of $159.3 million for the third quarter 2009, excluding the effects of non-recurring items.

During the third quarter of 2009, when including the effect of non-recurring items, the Company reported a loss from continuing operations of $47.0 million, or $0.48 per diluted share. These non-recurring items include a $15.1 million charge related to the write-off of previously deferred unamortized debt issuance costs and the payment of certain third-party fees in connection with the amendment of our Credit Agreement. On an after-tax basis, these adjustments approximated $9.8 million, or $0.10 per diluted share.

John T. Rynd, Chief Executive Officer and President of Hercules Offshore, stated, “In spite of the continuing uncertainty surrounding the permit approval process, we credit our customers and marketing group for finding opportunities to keep our Domestic Offshore segment relatively busy during what has been a very challenging regulatory environment for the shallow water drilling industry in the third quarter. While the pace of permit and exploration plan approval remains slow, the pick up in permit issuances for new wells in recent weeks gives us measured confidence that the Bureau of Ocean Energy Management, Regulation, and Enforcement (“BOEMRE”) and the industry are gaining common ground on compliance with the new regulations.”

“Our Domestic Liftboats benefited from spill remediation related work throughout the third quarter. Going forward, the recently issued Notice to Lessees — G05 is expected to provide a solid base of plug and abandonment and decommissioning work for our domestic liftboats over a multi-year cycle.”

Offshore

During the third quarter 2010, Domestic Offshore generated revenues of $25.1 million compared to $19.0 million in the same period of 2009, primarily as a result of an increase in industry activity year over year from the extremely low levels of demand experienced following the financial crisis. Utilization increased in the third quarter 2010 to 62.9% from 41.9% in third quarter 2009. Average revenue per rig per day decreased to $39,338 in the third quarter 2010 from $44,715 in the comparable 2009 period. Operating costs increased by $2.2 million to $38.7 million in the third quarter 2010, in part due to one time repairs and maintenance expense associated with our compliance with recent regulatory changes. Domestic Offshore recorded an operating loss of $32.1 million for the third quarter 2010 compared to an operating loss of $35.3 million in the third quarter 2009.

Revenues generated from International Offshore for the third quarter 2010 were $74.4 million, a $15.6 million decrease over the comparable 2009 period, due to a decline in operating days to 538 from 768 in the same periods, respectively. The decrease in operating days stems from the mobilization of the Hercules 205 and Hercules 206 from Mexico at the conclusion of their contracts to the U.S. Gulf of Mexico, as well as idle time on the Hercules 185 in Angola. Lower activity was partially offset by an increase in average revenue per rig per day, which increased to $138,344 in the third quarter 2010 from $117,241 in the third quarter 2009. Average operating expense per rig per day decreased to $37,518 from $43,945 in the respective third quarter periods of 2010 and 2009. International Offshore operating income remained relatively flat at approximately $27.0 million year over year.

Inland

Inland revenues of $5.7 million in the third quarter 2010 were more than double third quarter 2009 revenue of $2.4 million, bolstered by an increase in operating days to 269 from 116 in the same periods, respectively. Average revenue per rig per day remained relatively flat at $21,357 in the third quarter 2010 versus $21,009 in the third quarter 2009, while utilization increased to 97.5% from 42.0% over the same periods. Operating expenses in the third quarter 2010 increased slightly to $8.3 million compared with third quarter 2009 operating expenses of $7.4 million, largely due to an accrual of approximately $3.0 million related to a multi-year state sales and use tax audit. This segment recorded an operating loss of $8.6 million in the third quarter 2010 versus $13.5 million in the respective 2009 period.

Liftboats

Domestic Liftboats generated revenues of $24.6 million in the third quarter 2010 compared to $19.3 million in the third quarter 2009, as a result of a 30% increase in operating days to 3,203 from 2,466 in the same periods, respectively. Average revenue per liftboat per day declined modestly to $7,684 in the third quarter 2010 from $7,813 in the third quarter 2009. Utilization for the third quarter was 91.6%, a marked improvement from 68.6% in the third quarter 2009, reflecting incremental demand related to the Macondo well incident and spill remediation efforts. Domestic Liftboats recorded operating income of $9.4 million in the third quarter 2010 compared to $1.0 million in the third quarter 2009.

International Liftboats revenues increased 24% to $27.8 million in the third quarter 2010 versus $22.3 million in the third quarter 2009. Average revenue per liftboat per day was $23,176 in the third quarter 2010, a $3,750 increase from third quarter 2009 levels, while utilization declined to 56.6% from 62.4% in the same periods, respectively. Operating costs decreased slightly in the third quarter 2010 to $13.0 million from $14.5 million in the third quarter 2009. Operating income increased to $9.4 million in the third quarter 2010 from $2.6 million in the third quarter 2009.

Liquidity and Capitalization

At September 30, 2010, the Company had unrestricted cash and cash equivalents totaling $134.6 million and unused capacity of approximately $164 million under its revolving credit facility. As of September 30, 2010, the Company’s balance sheet reflects total debt of $859.5 million.

Non-GAAP

Certain non-GAAP performance measures and corresponding reconciliations to GAAP financial measures for the Company have been provided for meaningful comparisons between current results and prior operating periods. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. In order to fully assess the financial operating results, management believes that the adjusted loss from continuing operations figures included in this release are appropriate measures of the continuing and normal operations of the Company. However, these measures should be considered in addition to, and not as a substitute for, or superior to, income (loss) from continuing operations, operating income (loss), cash flows from operations, or other measures of financial performance prepared in accordance with GAAP. The non-GAAP measures included in this press release have been reconciled to the nearest GAAP measure in the table that follows the financial statements. Please see the attached Reconciliation of GAAP to Non-GAAP Financial Measures for a complete description of the adjustments made to Operating Loss, Loss From Continuing Operations and Diluted Loss per Share from Continuing Operations.

Conference Call Information

Hercules Offshore will conduct a conference call at 10:00 a.m. CDT (11:00 a.m. EDT) on Wednesday, October 27, 2010, to discuss its third quarter 2010 financial results. To participate in the call, dial 866-730-5770 (domestic) or 857-350-1594 (international) and reference access code 92223378 approximately 10 minutes prior to the start of the call. The conference call will also be broadcast live via the Internet at http://www.herculesoffshore.com.

A replay of the conference call will be available by telephone on October 27, 2010, beginning at 1:00 p.m. CDT (2:00 p.m. EDT), through November 3, 2010. The phone number for the conference call replay is 888-286-8010 (domestic) or 617-801-6888 (international). The access code is 59015707. Additionally, the recorded conference call will be accessible through our Web site at http://www.herculesoffshore.com for 28 days after the conference call.

Additional Information

Headquartered in Houston, Hercules Offshore, Inc. operates a fleet of 30 jackup rigs, 17 barge rigs, 65 liftboats, three submersible rigs, one platform rig and a fleet of marine support vessels. The Company offers a range of services to oil and gas producers to meet their needs during drilling, well service, platform inspection, maintenance, and decommissioning operations in several key shallow water provinces around the world.

For more information, please visit our Web site at http://www.herculesoffshore.com.

The news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are subject to a number of risks, uncertainties and assumptions, including the factors described in Hercules Offshore’s most recent periodic reports and other documents filed with the Securities and Exchange Commission, which are available free of charge at the SEC’s Web site at http://www.sec.gov or the Company’s Web site at http://www.herculesoffshore.com. Hercules Offshore cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements.

Contact Information:

Son P. Vann, CFA
Director, Investor Relations and Finance
713-350-8508

HERCULES OFFSHORE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)

		September 30,				December 31,
		2010				2009
		(Unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents		$	134,644			$	140,828
Restricted Cash			13,124				3,658
Accounts Receivable, Net			144,423				133,662
Prepaids			24,157				13,706
Current Deferred Tax Asset			11,246				22,885
Other			20,349				6,675
			347,943				321,414
Property and Equipment, Net			1,799,884				1,923,603
Other Assets, Net			29,489				32,459
		$	2,177,316			$	2,277,476
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term Debt and Current Portion of Long-term Debt		$	4,924			$	4,952
Insurance Notes Payable			16,386				5,484
Accounts Payable			49,057				51,868
Accrued Liabilities			61,999				67,773
Interest Payable			23,625				6,624
Taxes Payable			—				5,671
Other Current Liabilities			25,160				34,229
			181,151				176,601
Long-term Debt, Net of Current Portion			854,590				856,755
Other Liabilities			6,548				19,809
Deferred Income Taxes			198,941				245,799
Commitments and Contingencies
Stockholders’ Equity			936,086				978,512
		$	2,177,316			$	2,277,476

HERCULES OFFSHORE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2010				2009				2010				2009
Revenues		$	168,484			$	159,262			$	485,228			$	566,444
Costs and Expenses:
Operating Expenses			109,230				123,358				326,187				388,699
Impairment of Property and Equipment			—				—				—				26,882
Depreciation and Amortization			46,154				51,802				144,758				151,739
General and Administrative			14,512				16,814				41,613				48,556
			169,896				191,974				512,558				615,876
Operating Loss			(1,412	)			(32,712	)			(27,330	)			(49,432	)
Other Income (Expense):
Interest Expense			(21,384	)			(24,131	)			(64,382	)			(54,481	)
Expense of Credit Agreement Fees			—				(15,073	)			—				(15,073	)
Gain on Early Retirement of Debt, Net			—				—				—				13,747
Other, Net			(19	)			70				3,150				2,760
Loss Before Income Taxes			(22,815	)			(71,846	)			(88,562	)			(102,479	)
Income Tax Benefit			7,754				24,876				38,561				39,211
Loss from Continuing Operations			(15,061	)			(46,970	)			(50,001	)			(63,268	)
Loss from Discontinued Operation, Net of Taxes			—				(1,290	)			—				(1,965	)
Net Loss		$	(15,061	)		$	(48,260	)		$	(50,001	)		$	(65,233	)
Basic Loss Per Share:
Loss from Continuing Operations		$	(0.13	)		$	(0.48	)		$	(0.44	)		$	(0.69	)
Loss from Discontinued Operation			—				(0.02	)			—				(0.02	)
Net Loss		$	(0.13	)		$	(0.50	)		$	(0.44	)		$	(0.71	)
Diluted Loss Per Share:
Loss from Continuing Operations		$	(0.13	)		$	(0.48	)		$	(0.44	)		$	(0.69	)
Loss from Discontinued Operation			—				(0.02	)			—				(0.02	)
Net Loss		$	(0.13	)		$	(0.50	)		$	(0.44	)		$	(0.71	)
Weighted Average Shares Outstanding:
Basic			114,774				97,159				114,742				91,298
Diluted			114,774				97,159				114,742				91,298

HERCULES OFFSHORE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

		Nine Months Ended September 30,
		2010				2009
Cash Flows from Operating Activities:
Net Loss		$	(50,001	)		$	(65,233	)
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities:
Depreciation and Amortization			144,758				151,739
Stock-Based Compensation Expense			2,799				6,208
Deferred Income Taxes			(38,639	)			(64,535	)
Provision for Doubtful Accounts Receivable			80				4,468
Amortization of Deferred Financing Fees			2,493				2,851
Amortization of Original Issue Discount			3,041				3,196
Non-Cash Loss on Derivatives			1,987				5,554
Gain on Insurance Settlement			—				(8,700	)
Gain on Disposal of Assets			(10,180	)			(58	)
Gain on Early Retirement of Debt, Net			—				(13,747	)
Impairment of Property and Equipment			—				26,882
Excess Tax Benefits from Stock-Based Arrangements			(381	)			(5,500	)
Expense of Credit Agreement Fees			—				15,073
Net Change in Operating Assets and Liabilities			(36,277	)			61,750
Net Cash Provided by Operating Activities			19,680				119,948
Cash Flows from Investing Activities:
Additions of Property and Equipment			(16,353	)			(71,395	)
Deferred Drydocking Expenditures			(10,972	)			(13,719	)
Insurance Proceeds Received			—				9,168
Proceeds from Sale of Assets, Net			15,764				23,305
Increase in Restricted Cash			(9,466	)			(3,657	)
Net Cash Used in Investing Activities			(21,027	)			(56,298	)
Cash Flows from Financing Activities:
Short-term Debt Repayments			—				(2,455	)
Long-term Debt Repayments			(5,233	)			(20,555	)
Redemption of 3.375% Convertible Senior Notes			—				(6,099	)
Common Stock Issuance			—				83,344
Excess Tax Benefits from Stock-Based Arrangements			381				5,500
Payment of Debt Issuance Costs			—				(9,931	)
Other			15				(11	)
Net Cash Provided by (Used in) Financing Activities			(4,837	)			49,793
Net Increase (Decrease) in Cash and Cash Equivalents			(6,184	)			113,443
Cash and Cash Equivalents at Beginning of Period			140,828				106,455
Cash and Cash Equivalents at End of Period		$	134,644			$	219,898

HERCULES OFFSHORE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL AND OPERATING DATA
(Dollars in thousands, except per day amounts)
(Unaudited)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2010				2009				2010				2009
Domestic Offshore:
Number of rigs (as of end of period)			25				23				25				23
Revenues		$	25,058			$	18,959			$	88,163			$	115,110
Operating expenses			38,701				36,476				115,082				131,635
Depreciation and amortization expense			17,277				15,118				50,986				45,250
General and administrative expenses			1,146				2,615				4,807				5,595
Operating loss		$	(32,066	)		$	(35,250	)		$	(82,712	)		$	(67,370	)
International Offshore:
Number of rigs (as of end of period)			9				11				9				11
Revenues		$	74,429			$	90,041			$	221,364			$	295,250
Operating expenses			31,065				44,209				98,394				127,478
Impairment of property and equipment			—				—				—				26,882
Depreciation and amortization expense			14,404				16,769				43,808				48,702
General and administrative expenses			2,067				2,317				5,546				5,382
Operating income		$	26,893			$	26,746			$	73,616			$	86,806
Inland:
Number of barges (as of end of period)			17				17				17				17
Revenues		$	5,745			$	2,437			$	15,676			$	15,446
Operating expenses			8,279				7,442				20,359				36,563
Depreciation and amortization expense			4,991				8,166				18,736				24,442
General and administrative expenses			1,103				360				(1,756	)			1,588
Operating loss		$	(8,628	)		$	(13,531	)		$	(21,663	)		$	(47,147	)
Domestic Liftboats:
Number of liftboats (as of end of period)			41				41				41				41
Revenues		$	24,612			$	19,268			$	53,950			$	60,762
Operating expenses			11,314				12,725				31,481				39,277
Depreciation and amortization expense			3,314				5,048				11,182				15,844
General and administrative expenses			560				539				1,436				1,454
Operating income		$	9,424			$	956			$	9,851			$	4,187

HERCULES OFFSHORE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL AND OPERATING DATA — (Continued)
(Dollars in thousands, except per day amounts)
(Unaudited)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2010				2009				2010				2009
International Liftboats:
Number of liftboats (as of end of period)			24				24				24				24
Revenues		$	27,765			$	22,320			$	80,914			$	61,709
Operating expenses			12,951				14,457				42,310				31,677
Depreciation and amortization expense			4,199				4,010				13,258				8,672
General and administrative expenses			1,184				1,279				4,119				3,548
Operating income		$	9,431			$	2,574			$	21,227			$	17,812
Delta Towing:
Revenues		$	10,875			$	6,237			$	25,161			$	18,167
Operating expenses			6,920				8,049				18,561				22,069
Depreciation and amortization expense			1,172				1,892				4,376				6,318
General and administrative expenses			354				218				1,018				1,024
Operating income (loss)		$	2,429			$	(3,922	)		$	1,206			$	(11,244	)
Total Company:
Revenues		$	168,484			$	159,262			$	485,228			$	566,444
Operating expenses			109,230				123,358				326,187				388,699
Impairment of property and equipment			—				—				—				26,882
Depreciation and amortization			46,154				51,802				144,758				151,739
General and administrative			14,512				16,814				41,613				48,556
Operating loss			(1,412	)			(32,712	)			(27,330	)			(49,432	)
Interest expense			(21,384	)			(24,131	)			(64,382	)			(54,481	)
Expense of Credit Agreement Fees			—				(15,073	)			—				(15,073	)
Gain on early retirement of debt, net			—				—				—				13,747
Other, net			(19	)			70				3,150				2,760
Loss before income taxes			(22,815	)			(71,846	)			(88,562	)			(102,479	)
Income tax benefit			7,754				24,876				38,561				39,211
Loss from continuing operations			(15,061	)			(46,970	)			(50,001	)			(63,268	)
Loss from discontinued operation, net of taxes			—				(1,290	)			—				(1,965	)
Net loss		$	(15,061	)		$	(48,260	)		$	(50,001	)		$	(65,233	)

HERCULES OFFSHORE, INC. AND SUBSIDIARIES

SELECTED FINANCIAL AND OPERATING DATA — (Continued)

(Dollars in thousands, except per day amounts)

(Unaudited)

		Three Months Ended September 30, 2010
																		Average
														Average				Operating
														Revenue per				Expense per
		Operating Days				Available Days				Utilization (1)				Day (2)				Day (3)
Domestic Offshore			637				1,012				62.9	%		$	39,338			$	38,242
International Offshore			538				828				65.0	%			138,344				37,518
Inland			269				276				97.5	%			21,357				29,996
Domestic Liftboats			3,203				3,496				91.6	%			7,684				3,236
International Liftboats			1,198				2,116				56.6	%			23,176				6,121

		Three Months Ended September 30, 2009
																		Average
														Average				Operating
														Revenue per				Expense per
		Operating Days				Available Days				Utilization (1)				Day (2)				Day (3)
Domestic Offshore			424				1,012				41.9	%		$	44,715			$	36,043
International Offshore			768				1,006				76.3	%			117,241				43,945
Inland			116				276				42.0	%			21,009				26,964
Domestic Liftboats			2,466				3,596				68.6	%			7,813				3,539
International Liftboats			1,149				1,840				62.4	%			19,426				7,857

		Nine Months Ended September 30, 2010
																		Average
														Average				Operating
														Revenue per				Expense per
		Operating Days				Available Days				Utilization (1)				Day (2)				Day (3)
Domestic Offshore			2,426				3,074				78.9	%		$	36,341			$	37,437
International Offshore			1,598				2,516				63.5	%			138,526				39,107
Inland			759				819				92.7	%			20,653				24,858
Domestic Liftboats			7,433				10,374				71.7	%			7,258				3,035
International Liftboats			3,596				6,430				55.9	%			22,501				6,580

		Nine Months Ended September 30, 2009
																		Average
														Average				Operating
														Revenue per				Expense per
		Operating Days				Available Days				Utilization (1)				Day (2)				Day (3)
Domestic Offshore			1,994				3,532				56.5	%		$	57,728			$	37,269
International Offshore			2,351				2,763				85.1	%			125,585				46,138
Inland			414				1,302				31.8	%			37,309				28,082
Domestic Liftboats			7,349				11,308				65.0	%			8,268				3,473
International Liftboats			3,072				5,279				58.2	%			20,088				6,001

Hercules Offshore, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands, except per share data)

We report our financial results in accordance with generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP performance measures and ratios may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Non-GAAP financial measures we may present from time to time are operating income, income from continuing operations or diluted earnings per share excluding certain charges or amounts. These adjusted income amounts are not a measure of financial performance under GAAP. Accordingly, they should not be considered as a substitute for operating income, income from continuing operations, net income, earnings per share or other income data prepared in accordance with GAAP. See the table below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and nine months ended September 30, 2009. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. The non-GAAP measures included in this press release have been reconciled to the nearest GAAP measure in the following table:

		Three Months				Nine Months
		Ended				Ended
		September 30,				September 30,
		2009				2009
Operating Loss:
GAAP Operating Loss		$	(32,712	)		$	(49,432	)
Adjustment			—	(a)			26,882	(b)
Non-GAAP Operating Loss		$	(32,712	)		$	(22,550	)
Other Expense:
GAAP Other Expense		$	(39,134	)		$	(53,047	)
Adjustment			15,073	(a)			1,326	(b)
Non-GAAP Other Expense		$	(24,061	)		$	(51,721	)
Benefit for Income Taxes:
GAAP Benefit for Income Taxes		$	24,876			$	39,211
Tax Impact of Adjustment			(5,276)	(a)			(14,242	)(b)
Non-GAAP Benefit for Income Taxes		$	19,600			$	24,969
Loss from Continuing Operations:
GAAP Loss from Continuing Operations		$	(46,970	)		$	(63,268	)
Total Adjustment, Net of Tax			9,797	(a)			13,966	(b)
Non-GAAP Loss from Continuing Operations		$	(37,173	)		$	(49,302	)
Diluted Loss per Share from Continuing Operations:
GAAP Diluted Loss per Share from Continuing Operations		$	(0.48	)		$	(0.69	)
Adjustment per Share			0.10	(a)			0.15	(b)
Non-GAAP Diluted Loss per Share from Continuing Operations		$	(0.38	)		$	(0.54	)