Rowan Provides Fleet Contract Status Update
HOUSTON, Dec. 21, 2012 /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 December 21, 2012. The report titled "Monthly Fleet Status Report," can be found on the Company's website www.rowancompanies.com on the Home page.
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Notable events in the current report include:
- EXL I: Changed day rate to mid $220s (previously mid $210s) due to amortization adjustment.
- J.P. Bussell: Rig is expected to be off rate for five days in 1Q 2013.
- Scooter Yeargain: Rig is expected to enter the shipyard in January 2013 (previously March 2013) for 105 days (previously 135 days) for customer-required equipment upgrades.
- Gorilla VI: Off rate time in 4Q 2012 was eight days instead of the previously expected 25 days.
- Cecil Provine: Off rate time in 4Q 2012 was 49 days instead of the previously expected 57 days.
- Rowan Norway: Rig is currently in the shipyard for contract requirements and is expected to commence operations early January 2013 (previously mid December 2012). Rig is expected to be in the shipyard for approximately 80 days (previously 60 days) in 4Q 2012, part of which may be compensated. If necessary, the day rate will be adjusted to reflect compensated shipyard days in a subsequent fleet status. Changed day rate to the mid $350s (previously mid $360s) due to downward revision in expected reimbursement for modifications.
- Rowan Stavanger: Off rate time in 4Q 2012 was 25 days instead of the previously expected 16 days. Following completion of the well for Talisman in Norway in March 2013, the rig will operate in the U.K. sector of the North Sea at a day rate in the mid $240s through November 2013. While the rig is working in the U.K. sector of the North Sea, we expect slightly lower operating costs.
- Rowan Viking: Rig will enter the shipyard in February 2014 for equipment modifications and inspections for approximately 105 days (previously 30 days) prior to commencing its contract with Lundin for 15 wells in the Norwegian sector of the North Sea estimated to start in 2Q 2014.
The Company will not realize any day rate revenue during periods of off rate time, and crew costs will be capitalized during rig modifications and/or upgrades.
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 31 jack-up rigs is located worldwide, including the Middle East, the North Sea, Trinidad, Southeast Asia and the Gulf of Mexico. Rowan will enter the ultra-deepwater market with four high-specification drillships expected to be delivered starting in late 2013. 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 visit www.rowancompanies.com.
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 or transportation of rigs, 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
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