Parker Sells Nigerian Barge Rigs
Parker Drilling Company has executed a definitive agreement with The Shell Petroleum Development Corporation of Nigeria Limited (SPDC) to sell its Barge Rigs 73 and 75 and related assets located in Nigeria for $46 million.
The Company has already received a 10% deposit toward the purchase price and anticipates closing the transaction in late June, subject to customary closing conditions. The Company anticipates that it will recognize a gain of $2.0 to $2.5 million as a result of the sale.
This transaction will be accretive to earnings, as first quarter 2006 cash flow from the Nigeria barge operations was slightly above breakeven. The Company intends to use net proceeds to pay down debt, further enhancing earnings by reducing interest expense.
"This sale is another positive step in our strategic plan to optimize
returns on our asset base and to focus on core strategic markets. Going
forward, it will also better position us for long-term consistent
profitability," said Robert L. Parker, Jr., chairman, president and chief
Operates 28 Offshore Rigs
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Company: Parker Drilling more info
Manages 17 Offshore Rigs
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