Helmerich & Payne's Rig 201 Severly Damaged in Hurrican Katrina

Helmerich & Payne reports that one of its eight active offshore platform rigs located in the Gulf of Mexico has experienced significant damage as a result of Hurricane Katrina. The Company had evacuated all of its personnel from its Gulf of Mexico offshore operations and sustained no injuries or fatalities.

The Company's Rig 201, which operates on Shell's Mars tensioned-leg platform, lost its entire derrick and suffered considerable damage to the rig floor and substructure. At this time, the Company does not have an estimate of damages, but it is anticipated that insurance proceeds will cover all of its capital loss, less a $1 million deductible. The Company is presently analyzing its contract with the operator to determine any effect on income. Quarterly pre-tax cash flow from the platform rig was approximately $1.8 million for each of the past three fiscal quarters.

Early indications from inspections of the remainder of the Company's platform rigs and facilities are that little or no damage occurred to the rest of the Company's assets in the Gulf of Mexico. However, further assessments are currently underway and are still incomplete.
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