TODCO Interested in Consolidating Jackup Market

TODCO says it could use its extra cash to buy other rig contractors in the Gulf of Mexico or give the money back to shareholders, President and Chief Executive Jan Rask said on Tuesday.

Rask told a UBS oil and gas conference that TODCO's balance sheet had benefited from the high current day-rates being brought in by its fleet of 65 rigs.

"I'd like to consolidate the jack-up (rig) market in the Gulf of Mexico, if that's possible. We're going to look at opportunistic acquisitions that make sense to us," Rask told the conference.

Climbing energy prices have triggered strong demand in recent months in the shallow water jack-up market. There are currently about 113 jack-up rigs operating in the Gulf of Mexico.

"To the extent that we either can't do those (acquisitions) or they don't make sense to us, we're going to hand the cash back to shareholders through dividends or buybacks. I like extraordinary dividends," he said.

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