Coastal Drilling Says Repairs to Rig 20 Completed

Coastal Drilling is pleased to report that Rig 20, 1500 HP inland barge, has completed repairs from damage incurred from Hurricane Katrina. Rig 20 was working in the Biloxi Marsh Area southeast of New Orleans when unable to evacuate to safe harbor. The crew moving the rig had just enough time to stabilize the rig before evacuating in heavy seas. The day after Hurricane Katrina moved north and on into Mississippi, an assessment by owner Chris McClanahan was done. Rig 20 was upright and appeared to be in better shape than expected. With the knowledge of experienced personnel and direction of Coastal Drilling management the rig was raised off bottom and was immediately sent to drydock. After further evaluation, the rig had been submerged under water from the pipe rack down approximately 20 feet of water was over the top deck of the barge. Coastal Drilling crews worked for several days to rid the rig of sea grass that was up to 5 feet high in places. Snakes were also a consideration in the mats of grass. At last count there were 150 snakes extracted from the rig.

Bollinger Shipyard in Larose, Louisiana has worked with Coastal Drilling management and rig personnel to expedite the repairs to Rig 20. With exceptional people come extraordinary results.

Rig 20 has returned to service in the Biloxi Marsh area for Meridian Resources. Rig 20 has several wells to drill and is beginning another long term contract. To date Rig 20 has over 545 days drilling in the Biloxi Marsh area.

Coastal Drilling Company is based in Corpus Christi,Texas. The Louisiana field office is in Belle Chase, south of New Orleans. The company operates 5 land rigs in South Texas, and 2 barge rigs working the inland and offshore waters of Louisiana. A sixth rig, 2,000 HP land unit, is being added to the land fleet. A third rig, Rig 22, is under construction on the barge side of the company and will be working the transition zone of the Gulf of Mexico waters. Rig 22 is a posted barge that will have a drilling depth capability of 35,000 feet, targeting the "Deep Gas" prospects.

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