Parker Drilling Sells South American Land Rigs
Parker Drilling entered into definitive agreements with affiliates of Saxon Energy Services Inc. to sell its seven remaining land rigs and related assets located in Colombia and Peru. The total purchase price for all the transactions is $34 million. One of the agreements closed simultaneous with the execution of the definitive agreement, resulting in receipt of approximately $4 million. The Company anticipates closing the remaining transactions within the next 30 days, subject to obtaining contractual related consents and various third party approvals. The Company expects to recognize a gain on the disposition of these assets. Proceeds from the sale will be used to retire debt.
"We are pleased to move ahead with our asset sales program," said Robert
L. Parker, Jr., president and chief executive officer. "With this sale we will
achieve approximately 90% of our $200 million debt reduction goal, which will
allow us to compete more effectively in core strategic markets, including our
Mexico operations. Going forward, it will also better position us for growth
and long-term consistent profitability as we continue to focus on increased
rig utilization of our existing fleet."