Rowan Provides Fleet Contract Status Update
HOUSTON, Aug. 15, 2013
HOUSTON, Aug. 15, 2013 /PRNewswire/ --Rowan Companies plc ("Rowan" or the
"Company") (NYSE: RDC) announced today that its monthly report of drilling rig
status and contract information has been updated as of August 15, 2013. The
report titled "Monthly Fleet Status Report" can be found on the Company's
website at www.rowancompanies.com.
Notable events in the current report include:
oRowan Reliance: Entered into a three-year contract with Cobalt
International Energy, L.P. at an effective day rate of $602,000, including
mobilization revenues. The drillship is expected to be delivered at the
end of October 2014 and operate in the U.S. Gulf of Mexico starting in
late January 2015. The Rowan Reliance is one of four ultra-deepwater
drillships being constructed for Rowan by Hyundai Heavy Industries Co.
Ltd. ("HHI") shipyard in Ulsan, South Korea.
With the award of this contract for the Rowan Reliance, three of the
Company's four ultra-deepwater drillships under construction at HHI are
now under contract. The fourth remaining uncontracted drillship, the
Rowan Relentless, is scheduled to be delivered from the shipyard at the
end of March 2015.
oEXL III: Awarded a contract to drill a relief well for Walter Oil and Gas
estimated at 45 days in the Gulf of Mexico at $160,000 per day (no change
from previous day rate).
oRowan Louisiana: Awarded a one-well contract for Northstar estimated at
90 days in the Gulf of Mexico at $95,000 per day.
oIncreased 3Q 2013 off-rate time by 40 days to a total of 61 days
(previously 21 days) for leg repairs that commenced in mid-July
2013. Operating costs will be expensed during this period.
oPreviously scheduled 140 days out of service project for repairs,
upgrades and inspections is planned to start at the beginning of 2Q
2014 instead of during 1Q 2014.
oGorilla III: Awarded an extension for a 24-day well recompletion with EOG
in Trinidad at $145,000 per day.
oCharles Rowan: Previously scheduled 25 days off-rate time for repairs and
inspections is expected to occur during 4Q 2013 instead of 3Q 2013.
Out-of-service days include days for which no revenues are recognized other
than operational downtime and cold-stacked days. The Company may be
compensated for certain out-of-service days, such as for shipyard stays or for
transit periods preceding a contract. However, recognition of any such
compensation received is deferred and recognized over the period of drilling
operations. Operational downtime is when a rig is under contract and unable
to conduct planned operations due to equipment breakdowns or procedural
failures. No operational downtime is included in projected out-of-service
days, but the company estimates operational downtime to account for
approximately 2.5% of in-service days in current and future quarters.
This summary is provided as a courtesy and is not intended to replace a
detailed review of the Monthly Fleet Status Report. While the Company has
attempted to include items it believes are significant, we encourage you to
review the Monthly Fleet Status Report in detail.
Rowan Companies plc is a major provider of international and domestic contract
drilling services with a leading position in high-specification jack-up rigs.
The Company's fleet of 30 jack-up rigs is located worldwide, including the
Middle East, the North Sea, Trinidad, Egypt, Southeast Asia and the Gulf of
Mexico. Additionally, Rowan has four ultra-deepwater drillships under
construction with three of the four drillships under three-year contracts.
The Company's Class A Ordinary Shares are traded on the New York Stock
Exchange under the symbol "RDC". For more information on the Company, please
Statements herein that are not historical facts are forward looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
including, without limitation, statements as to the expectations, beliefs and
future expected business, financial performance and prospects of the Company.
These forward-looking statements are based on our current expectations and are
subject to certain risks, assumptions, trends and uncertainties that could
cause actual results to differ materially from those indicated by the
forward-looking statements. Among the factors that could cause actual results
to differ materially include oil and natural gas prices, the level of offshore
expenditures by energy companies, variations in energy demand, changes in day
rates, cancellation by our customers of drilling contracts or letter
agreements or letters of intent for drilling contracts or the exercise of
early termination provisions, risks associated with fixed cost drilling
operations, cost overruns or delays on shipyard repair, construction or
transportation of drilling units, maintenance and repair costs, costs or
delays for conversion or upgrade projects, operating hazards and equipment
failure, risks of collision and damage, casualty losses and limitations on
insurance coverage, customer credit and risk of customer bankruptcy,
conditions in the general economy and energy industry, weather conditions and
severe weather in the Company's operating areas, increasing complexity and
costs of compliance with environmental and other laws and regulations, changes
in tax laws and interpretations by taxing authorities, civil unrest and
instability, terrorism and hostilities in our areas of operations that may
result in loss or seizure of assets, the outcome of disputes and legal
proceedings, effects of the change in our corporate structure, and other risks
disclosed in the Company's filings with the U.S. Securities and Exchange
Commission. Each forward-looking statement speaks only as of the date hereof,
and the Company expressly disclaims any obligation to update or revise any
forward-looking statements, except as required by law.
SOURCE Rowan Companies plc
Contact: Suzanne M. Spera, Director, Investor Relations, (713) 960-7517,
Press spacebar to pause and continue. Press esc to stop.