Drillers Technology Awarded 265 Well Program in Mexico


Burgos and Veracruz Basins, Mexico
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Drillers Technology de Mexico, a joint venture between Drillers Technology Corp. and Dowell Schlumberger, has been awarded a contract to drill a minimum 265 well program in Mexico's Burgos basin (the "Burgos 350 contract"). The Burgos 350 contract is slated to commence January 1, 2005 and is estimated to take 30 months to complete. DTM is contracted to Dowell Schlumberger to provide the drilling portion of their fully integrated, multi-service oilfield contract with Pemex.

Under its existing contracts, DTM has eight drilling rigs located in Mexico; two under contract in the Chicontepec field and an additional six rigs in the Burgos field. To date the Chicontepec program is 14 months ahead of schedule, with the contract due to expire December 31, 2006. As previously disclosed, the original Burgos contact has been extended to December 31, 2004 and as these rigs become available they will be deployed into the new Burgos 350 contract. In time, additional rigs may be sold from DTC's Canadian fleet into DTM as needed by the Burgos 350 contract.

In connection with the Burgos 350 contract, DTM has negotiated a 14% increase in dayrates for rigs deployed. Over the life of the Burgos 350 contract, DTM estimates rig utilization rates of approximately 85% to 90%. DTM projects dayrate growth in concert with high utilization will materially strengthen DTM's financial performance through 2007.

In addition to DTM, DTC has six wholly owned rigs - five operating in western Canada and one in Alaska, with all rigs committed through to spring breakup 2005.
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