February 2, 2006
TODCO reactivates jackup rig
TODCO (NYSE: THE) has announced the reactivation of a cold-stacked jackup rig against a term contract from an independent oil and gas company.
TODCO is a leading provider of contract oil and gas drilling services with the largest rig fleet in the shallow water of the U.S. Gulf of Mexico and along the U.S. Gulf Coast.
Jan Rask, President and Chief Executive Officer of TODCO, said "We are pleased to announce the signing of this term contract to facilitate the reactivation of our jackup rig, THE 256. Including this reactivation, we are currently reactivating two jackup rigs, two submersible rigs and one inland barge rig. This is further indication of the strong market we are experiencing in our industry today.
THE 256, a 250 foot mat slot jackup rig, will be reactivated against a one-year term contract with contract revenues of approximately $38 million. The cost to reactivate and upgrade the rig is estimated at $18.6 million consisting of approximately $12.4 million of reactivation costs that will be expensed over the 150-day reactivation period and an additional $6.2 million for capital upgrades to the rig.