Bob Palmer News

ASRY, a ship and rig repair yard in the Arabian Gulf, has welcomed its 100th rig repair job to the yard, as 2016 posts the highest number of rig repair contracts in the yards history. The project is on the high specification jack-up rig ‘Bob Palmer’, one of the largest jack-up rigs in the world,  owned and operated by Rowan Companies, which is one of the world’s leading providers of offshore contract drilling services, and long-term client of ASRY’s. “ASRY’s diversification into rig repair has continually proven to be one of the yard’s most perceptive moves…

Rowan Companies entered into a multi-well contract with McMoRan Oil & Gas Corporation LLC that includes re-entering the Blackbeard Prospect. The Gorilla IV has been committed for a minimum of 90 days, and work on Blackbeard is priced at a day rate in the mid $190s. The initial Blackbeard well was drilled to a depth of just over 30,000 feet during 2005-2006 by Rowan's first Tarzan Class jack-up, the Scooter Yeargain. Rowan's Super Gorilla class jack-up the Bob Palmer is undergoing final preparations for its initial assignment on British Petroleum's Eldorado Prospect. The rig will be drilling one or more wells targeting a depth of at least 28,000 feet.

With softness in the Gulf of Mexico and the U.S. apparently on the brink of war, Bob Palmer, Chairman and CEO of Rowan, said, "July earnings were better than expected and, through August, financial results were about as forecast. However, the outlook for September requires that we revise downward our 'best guess' for third quarter earnings to a range of 20-25 cents per share. "Rowan's offshore rig utilization for the third quarter is currently estimated to be 70%, down from 90% during the second quarter. Our average offshore day rate for the third quarter should be about $57,000, down from $61,000 during the second quarter. For competitive reasons, we will not provide specific information regarding contract terms or day rates unless such contracts are considered to be material.

Rowan Companies, Inc. took delivery of its newest jack-up rig, the Bob Palmer on August 18. The rig's initial assignment will be to drill a 25,000 foot well in the Gulf of Mexico, which should begin within 30 days. The Bob Palmer is an enhanced version of our Super Gorilla class jack-up, designated a Super Gorilla XL. The rig is outfitted with 713 feet of leg, 139 feet more than Gorillas V, VI or VII, and has 30% larger spud cans enabling operation in the Gulf of Mexico in water depths up to 550 feet.

Rowan Companies, Inc. reported that the English Court has given a comprehensive judgement in its favor in proceedings between its subsidiary, British American Offshore Limited (BAO) and Amoco (UK) Exploration Company (Amoco). rig Rowan Gorilla V. The court declared that the rig was fit for purpose in all respects when the contract was terminated. Amoco had refused to commence drilling at the Arbroath platform in January 1999, arguing that much of Gorilla V's equipment was unfit and unsafe. were economic, following a downturn in oil prices and the BP/Amoco merger on January 1, 1999. The court rejected the evidence of Amoco and BP witnesses that the decision was made for safety reasons, or because Amoco had "lost confidence" in BAO. no ground for complaint was justified.

Rowan Companies, Inc., El Paso Oil & Gas Canada, Inc., an indirect subsidiary of El Paso Corporation, and Canadian Superior Energy Inc. announced the contracting of the Rowan Gorilla V for the initial drilling of El Paso's and Canadian Superior's Marquis Natural Gas Project Offshore Nova Scotia. "The Rowan Gorilla V is one of the largest jack-up drilling rigs operating in the world and in association with Canadian Superior, we are very pleased to see this contract awarded to Rowan," said Harvey Klingensmith, President of El Paso Canada. The Gorilla V is the first of a series of Super Gorilla class jack-ups capable of drilling and producing simultaneously in water depths up to 400 feet in harsh environments like offshore Eastern Canada.

Rowan Companies, Inc. announces all six Gorilla Class rigs are now under contract -- Gorillas II, III, IV and VI are operating on well-to-well contracts in the Gulf of Mexico and Gorillas V and VII should commence operation in eastern Canada and the North Sea early in the third quarter. Bob Palmer, Chairman and Chief Executive Officer, commented, "All 24 Rowan offshore rigs are now under contract -- for the first time in over one year. We view this as a very positive event, greatly reducing, for the moment, an uncertain outlook. We are particularly encouraged by the fact that about one- half of our Gulf of Mexico rigs are on deep Miocene prospects with well depths in the range of 15,000 to 22,000 feet.

With softness in the Gulf of Mexico and the U.S. apparently on the brink of war, Bob Palmer, Chairman and CEO of Rowan, said, "July earnings were better than expected and, through August, financial results were about as forecast. However, the outlook for September requires that we revise downward our 'best guess' for third quarter earnings to a range of 20-25 cents per share. "Rowan's offshore rig utilization for the third quarter is currently estimated to be 70%, down from 90% during the second quarter. Our average offshore day rate for the third quarter should be about $57,000, down from $61,000 during the second quarter. For competitive reasons, we will not provide specific information regarding contract terms or day rates unless such contracts are considered to be material.

Rowan Companies announced that its Super Gorilla class jack-up, Gorilla V, will resume drilling for EnCana Corporation under a contract which was suspended in 2002. The rig will be utilized offshore eastern Canada for EnCana's shallow water exploration campaign beginning in early May. The initial commitment is for one well, with options for additional wells. Bob Palmer, Chairman and Chief Executive Officer, commented, "The resumption of this contract reaffirms our confidence in the long-term viability of the eastern Canada market for harsh environment jack-ups. We look forward to continuing our activities with EnCana."