Rowan Obtains Three-Year Contracts for Six Land Rigs

Rowan Obtains Three-Year Contracts for Six Land Rigs

Rowan Companies, Inc. announced that it has entered into three-year contracts with EnCana for four new 2000-horsepower land rigs. Delivery of the first rig is scheduled for May 2009, with each additional rig to follow approximately every three months thereafter.

Two additional land rigs are currently under construction and just received three-year contracts, one with EnCana and one with Common Resources; those rigs are expected to be delivered in November 2008 and January 2009, respectively.

The new contracts total 18 rig-years, and should provide approximately $175 million of drilling revenues. All six rigs will work in Texas, Louisiana or Oklahoma.

Danny McNease, Rowan Chairman and Chief Executive Officer, commented, “These contracts show our customers’ continued confidence in the strength of the deep-gas drilling market in the United States and in the quality of Rowan’s drilling equipment and personnel.”

Rowan Companies, Inc. is a major provider of international and domestic contract drilling services. The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries. The Company’s stock is traded on the New York Stock Exchange. Common Stock trading symbol: RDC.

Share this post