Oil States to Expand Rig Fleet
Oil States International's land drilling subsidiary, Capstar Drilling, L.P., has entered into firm, two-year drilling contracts with an independent E&P company to build a total of two fit-for-purpose rigs for the Rocky Mountain region. The rigs under construction are expected to begin work in June and August of 2007. Construction costs, totaling approximately $13.4 million, will be financed with funds available under Oil States' existing credit facility. Once complete, these rig additions will bring Oil States' rig fleet in the Rockies to ten rigs and its total rig fleet to 34 rigs.
"We continue to look to serve the needs of our customers and capitalize on our competitive rig design," stated Douglas E. Swanson, Oil States' Chief Executive Officer. "These long term contracts with a major independent operator for rigs to be delivered in 9 to 12 months validate the desirability and efficiency of our Capstar rig design for development drilling in the U.S. resource plays."
Oil States International, Inc. is a diversified oilfield services company. With locations around the world, Oil States is a leading manufacturer of products for deepwater production facilities and subsea pipelines, and a leading supplier of a broad range of services to the oil and gas industry, including production-related rental tools, work force accommodations and logistics, oil country tubular goods distribution and land drilling services. Oil States is organized in three business segments -- Offshore Products, Tubular Services and Well Site Services, and is publicly traded on the New York Stock Exchange under the symbol OIS.
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