Rowan building two new jackups

Rowan Companies, Inc. says it plans to add two new jackup rigs to its offshore fleet. The rigs will be a new design called the LeTourneau 240C.

Offshore staff

(US, GoM) - Rowan Companies, Inc. says it plans to add two new jackup rigs to its offshore fleet. The rigs will be a new design called the LeTourneau 240C. Each rig will cost approximately $165 million and will be constructed at Rowan's Vicksburg, Mississippi facility.

Expected delivery of the first rig is early summer 2008, and the second in early 2009. Rowan currently anticipates funding construction with available cash, but will consider attractive financing alternatives.

The 240C-designed rigs will have up to 535 ft of leg length, enabling operations in water depths of up to 400 ft, and are designed for high pressure/high temperature drilling. Compared to the 116C design, the 240C rigs will have more deck space, higher variable load, more drilling capacity (two million pound hook-load capability), more cantilever reach (up to 85 ft) and increased personnel on board (120 man).

The 240C design will set a new standard as a replacement for the industry's current fleet of 116C rigs, which has been the "workhorse" of the global drilling industry for the past 25 years.

Danny McNease, chairman and CEO, commented, "The construction of these rigs, utilizing the resources of our manufacturing division, will accelerate the process of replacing our rigs lost in the recent hurricanes, and will further enhance our fleet of technically superior jackup drilling rigs operating in niche markets."

"The construction of the two 240C rigs, together with the previously announcedHank Boswell and Tarzan IV, will provide us with rig deliveries in 2006, 2007, 2008 and 2009," he added.

"By summer 2006, we will also have nine new land rigs working under term contracts at very attractive day rates. This expansion and acceleration of our construction program will greatly enhance our asset and revenue base and further strengthen our market position."

12/02/05

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