Helmerich & Payne Increases FlexRig Order

Helmerich & Payne, Inc.'s Board of Directors approved the construction and purchase of ten additional new rigs and major equipment for its U.S. land rig operations. Earlier this year H&P announced that it would construct 15 new FlexRigs(TM), H&P's highly mobile 8-18,000' land rig. That earlier commitment is being increased from 15 to 25 new FlexRigs(TM). H&P intends to accelerate construction of the new FlexRigs(TM) so that all 25 additional rigs will be delivered by March 2003. H&P intends to complete its current 12 FlexRig(TM) construction program by January 2002. Eight rigs of the current order of 12 FlexRigs(TM) are committed, including seven rigs with two-year and three-year firm term contracts. The 25 new rigs are estimated to cost $10 million each. This is an increase over the previous estimate of $9 million due to new enhancements such as integrated top drive and variable frequency AC drives. H&P will also spend approximately $45 million to purchase 30 new Varco top drives to upgrade its existing U.S. land rig fleet. This upgrade should be complete by 2003.

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