Parker Drilling And HRI Complete Alliance Agreement

Parker Drilling Company and HRI Oilfield have completed their previously announced alliance agreement. Through this alliance HRI has the exclusive license to market and manufacture the intellectual property of Parker Technology, L.L.C.

"Parker Drilling will receive the same high level of service for rig upgrades and new builds while eliminating the overhead costs associated with maintaining the fabrication facilities in New Iberia, Louisiana," said John R. Gass, Vice President of Corporate Business Development. "In addition to eliminating the costs, Parker Drilling will earn royalties from HRI when our designs are used to build rigs for other companies."

The designs include the Partech, OIME and PARCO Mast and Substructures, Inc., product lines. The Partech subsidiary of Parker Drilling built more than 273 onshore and offshore rigs utilizing OIME drawworks, lightweight triplex mud pumps, rotary tables, swivels, blocks, transmissions, compounds and PARCO masts and substructures.

"This alliance agreement with Parker Drilling positions HRI to be a top supplier to customers worldwide in the big rig market," stated Sioux Sinnott, President of HRI Oilfield. "The Partech, OIME and Parco designs complement HRI's existing mobile rig product line and enable HRI to expand services to the 1500 hp and above land, offshore and heli-rig markets. It strengthens our vision of delivering global rig solutions."

HRI took over the Partech facility in New Iberia, Louisiana, July 1. This facility, built by Parker Drilling in 1998, is an excellent location to service both the land and offshore markets. HRI's mobile rig facility, located in Brady, Texas, is currently manufacturing the LADS (Light Automated Drilling Systems) Rig for Phoenix Alaska under contract to BP.