Rowan Companies, Inc. was awarded term drilling contracts for two Class 116-C jack-up drilling rigs to begin operating offshore Qatar in late 2006 or early 2007. Each contract is for a two-year term and contains an option for one additional year. Each rig is currently under contract in the Gulf of Mexico. The relocation of the two rigs to the Middle East will begin late in the third quarter and should be completed by the end of the year. Rowan estimates that revenues from the two contracts over
the two-year term will be between $278m and $293m, depending upon when drilling operations begin.