Drillers Technology Sells Another Rig to Mexican JV

Drillers Technology has sold Rig 4 to the Mexican joint venture for gross proceed of $5.9 million. The Corporation will receive $2.9 million in cash representing 49% of the value and a joint venture interest for the remaining 51%. Approximately $1.5 million of the $2.9 million in cash proceeds will be used to fund the Corporation's 51% share of additional capital equipment required by Rig 4 to meet Mexican drilling specifications. This rig is to be deployed to the Burgos project and is expected to commence active operations prior to the end of February 2004.

The Mexican joint venture, owned 51% by Drillers Technology Corp. and 49% by Dowell Schlumberger de Mexico, now including Rig 4, will operate 8 rigs in Mexico of which 4 rigs are drilling in the Burgos area and 4 rigs in the Chicontepec field. All rigs will continue to drill for Schlumberger under the terms of its existing daywork contracts and continue to be fully utilized.

In addition to the 51% interest in eight rigs held through the Mexican joint venture, Drillers Technology now has six wholly owned drilling rigs. One rig is contracted to Kuukpik Drilling in Alaska, and five rigs are contracted to winter drilling programs located in western Canada and are expected to be fully utilized through to spring break-up.
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