Rowan Companies, Inc. was awarded a contract to drill two wells on the
Grand Banks of Newfoundland, using a Super Gorilla class rig. The contract provides an option for a third well. This assignment, which is subject to certain regulatory approvals, should commence around mid-year and is expected to last into December 2005. After undergoing modifications, Rowan Gorilla VI will be relocated from the Gulf of Mexico to eastern Canada during the second quarter. Rowan estimates that revenues from this contract will be as much as $26 million, depending upon the duration of the assignment.
Danny McNease, Chairman and Chief Executive Officer, commented, "We have been aggressively pursuing opportunities to diversify our drilling operations and better utilize our Super Gorilla and Gorilla class jack-up rigs. This contract serves both objectives. We are very excited about this opportunity to further demonstrate the capabilities of Rowan's equipment and personnel. We are also looking forward to returning to the eastern Canada drilling market where Rowan has operated for most of the past 25 years."