HOUSTON, May 26, 2016
/PRNewswire/ -- Parker Drilling Company (NYSE: PKD) announced
today that its customer awarded an extension and additional rig to
its operations and maintenance (O&M) contract on Sakhalin
Island, Russia. The prior contract
term was set to expire in the third quarter of 2017 and covered
operating and maintaining three customer-owned rigs in support of
the Sakhalin-1 Project. The O&M contract term now extends
through June 2019 and also covers a
newly constructed fourth customer-owned extended-reach drilling
(ERD) rig. The extension, inclusive of the additional new rig, is
expected to add in excess of $180
million in revenue backlog over the course of the contract
and brings the company's operations on Sakhalin Island to a total
of five rigs, including one Parker-owned rig.
"Parker Drilling has an
unwavering commitment to being the most innovative, reliable, and
efficient drilling contractor, always with our eyes on reducing
customers' risks and costs," said Gary
Rich, the Company's Chairman, President and CEO. "Our
growth in this division is a testament both to the ERD successes we
have achieved with our customer on Sakhalin Island as well as the
support we have provided to our customer through the design and
construction of the new rig. Even in the face of our industry's
significant challenges and headwinds, we have the opportunity to
find new ways to align our strategy and operations with our
customers' needs."
Company Description
Parker Drilling provides drilling
services and rental tools to the energy industry. The Company's
Drilling Services business serves operators in the inland waters of
the U.S. Gulf of Mexico utilizing
Parker Drilling's barge rig fleet
and in select international markets and harsh-environment regions
utilizing Parker-owned and customer-owned equipment. The Company's
Rental Tools Services business supplies premium equipment and well
services to operators on land and offshore in the U.S. and
international markets. More information about Parker Drilling can be found on the Company's
website at www.parkerdrilling.com.
Cautionary Statement
This press release contains certain statements that may be
deemed to be "forward-looking statements" within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934. All
statements in this press release other than statements of
historical facts addressing activities, events or developments the
Company expects, projects, believes, or anticipates will or may
occur in the future are forward-looking statements. These
statements include, but are not limited to, statements about
anticipated future financial or operational results; the outlook
for rental tools utilization and rig utilization and dayrates; the
results of past capital expenditures; scheduled start-ups of rigs;
general industry conditions such as the demand for drilling and the
factors affecting demand; competitive advantages such as
technological innovation; future operating results of the Company's
rigs, rental tools operations and projects under management; future
capital expenditures; expansion and growth opportunities;
acquisitions or joint ventures; asset purchases and sales;
successful negotiation and execution of contracts; scheduled
delivery of drilling rigs or rental equipment for operation; the
Company's financial position; changes in utilization or market
share; outcomes of legal proceedings; compliance with credit
facility and indenture covenants; and similar matters. These
statements are based on certain assumptions made by the Company
based on management's experience and perception of historical
trends, current conditions, anticipated future developments and
other factors believed to be appropriate. Although the Company
believes its expectations stated in this press release are based on
reasonable assumptions, such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the Company, that could cause actual results to differ
materially from those implied or expressed by the forward-looking
statements. These include risks relating to changes in worldwide
economic and business conditions, fluctuations in oil and natural
gas prices, compliance with existing laws and changes in laws or
government regulations, the failure to realize the benefits of, and
other risks relating to, acquisitions, the risk of cost overruns,
our ability to refinance our debt and other important factors, many
of which could adversely affect market conditions, demand for our
services, and costs, and all or any one of which could cause actual
results to differ materially from those projected. For more
information, see "Risk Factors" in the Company's Annual Report
filed on Form 10-K with the Securities and Exchange Commission and
other public filings and press releases. Each forward-looking
statement speaks only as of the date of this press release and the
Company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
CONTACT: Jason Geach, Vice
President, Investor Relations & Corporate Development, +1 (281)
406-2310, jason.geach@parkerdrilling.com.
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SOURCE Parker Drilling Company