Rowan Wins Contract for Gorilla VII
Rowan Companies, Inc. has been awarded a contract by Tuscan Energy (Scotland) Limited for its Rowan Gorilla VII for a simultaneous drilling and production program in the Ardmore Field in the U.K. sector of the central North Sea. The contract, which is subject to certain regulatory approvals, is for a firm period of 18 months and includes the drilling of up to four wells, with options for up to an additional 42 months. Operations are scheduled to commence late in the second quarter of 2003.
Bob Palmer, Rowan Chairman and Chief Executive Officer, commented, "The North Sea is a rapidly changing market and it is important for Rowan to be at the forefront of these changes. This is a technically and commercially innovative project with the North Sea's newest operator -- Tuscan Energy. The principal risk is economic -- will the price of oil over the next several years provide an adequate financial return to the investor? Only time will tell. Rowan will share a portion of the economic risk and reward, adjusting the rig day rate with the rise and fall of oil prices. We estimate drilling revenues in the range of $80-100 million over the minimum contract term.
"The Super Gorilla was designed specifically for the drilling, development and production of marginal oil fields in the North Sea. The Ardmore Field (ex-Argyll) is our first opportunity to demonstrate this design capability."