Rowan Companies assess Hurricane Ike damage

Rowan Companies has completed an initial aerial survey of its nine rigs in the Gulf of Mexico. All of the company's rigs were on location, with the exception of the Rowan-Anchorage.

Offshore staff

HOUSTON -- Rowan Companies has completed an initial aerial survey of its nine rigs in the Gulf of Mexico. All of the company's rigs were on location, with the exception of the Rowan-Anchorage. The company is undertaking efforts to locate the rig but believes it may have capsized and sunk at its pre-storm location offshore Louisiana.

In addition, Rowan's Sabine Pass, Texas facility encountered a significant storm surge and is expected to be out of commission for some time. The company's newbuild jackup,Rowan-Mississippi, which is stationed there for final outfitting, was apparently struck by another vessel during the storm. The company's initial assessment is that the damage is limited and should not delay the rig's scheduled delivery.

Rowan's other rigs in the Gulf Coast area appear to have sustained minimal damage but a complete evaluation of their condition will require a closer inspection upon the return of the company's drilling personnel. Crewmembers have begun returning to their assigned rigs and normal operations should resume as soon as possible, the company says.

TheRowan-Anchorage was a LeTourneau 52-class slot jackup rig. The rig had been secured at its pre-storm location in Vermillion block 201 and all personnel were evacuated prior to the arrival of Hurricane Ike. It was insured for $60 million, less a $17.5 million windstorm deductible, and had a carrying value of approximately $4.5 million. The rig had been operating under a well-to-well contract at a day rate of approximately $60,000.

09/18/2008

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