October 2, 2008
Tarzan to go to work offshore Egypt
Rowan Companies, Inc. (NYSE:RDC) announced today that it has received a letter of intent from Shell Egypt for the new Tarzan Class jack-up rig, J. P. Bussell.
Separately, it announced that it had obtained a $30 million Gulf of Mexico commitment for the jack-up Gorilla IV
The offshore Egypt commitment is for two wells that are estimated to require 20 total months to drill, and contains options for three additional wells. Drilling should begin during the third quarter of 2009 and the two-well assignment is expected to provide Rowan with approximately $111 million of drilling revenues. The option wells are at mutually agreeable day rates and would require an estimated 30 additional months to drill.
The J. P. Bussell is currently at Rowan's Sabine Pass, Texas facility for final outfitting, and is scheduled for completion in early November 2008. The rig should commence operations in the Gulf of Mexico soon thereafter.
Danny McNease, Rowan Chairman and Chief Executive Officer, commented, "This commitment underlies our continued confidence in the strength of the global drilling market, and provides a further testament to the quality of Rowan's equipment and personnel. We are dedicated to increasing value for our shareholders over the long-term and believe that the continued execution of our strategic plan to expand and diversify our drilling operations throughout the world gives us the best opportunity for doing so."
Meantime, Rowan has received a letter of intent from W&T Offshore, Inc. for the Gorilla IV. The commitment is for two wells covering a minimum term of 150 days, which will begin when the rig is released from its current drilling assignment. Rowan expects to earn approximately $30 million of drilling revenues over the minimum term.
The Gorilla IV is currently drilling for McMoRan on the Blackbeard Prospect. The company estimates that the rig will be available for W&T by early in the first quarter of 2009.