Parker Sells Gulf of Mexico Jackups and Platform Rigs

Parker Drilling Company has closed the sale of its jackup and platform rigs in the Gulf of Mexico for net proceeds of approximately $40 million.

Hercules Assets, LLC has agreed to purchase jackup rigs 11J, 15J, 20J, 21J, and 22J and platform rigs 2P, 3P, 10P, and 41P and their related assets. Proceeds from the sale will be used to retire debt.

The sale does not include jackup rigs 14J or 25J. Earlier this year, the Company received insurance proceeds for 14J and applied those proceeds towards debt reduction. The Company is pursuing offers for 25J separate from this transaction.

"We are pleased to move ahead with our asset sales program," said Robert L. Parker Jr., president and chief executive officer. "The increased financial flexibility afforded us due to reduced interest expense will enhance the Company's ability to compete more effectively in our core operations areas, and is a significant step in the process to position us for future growth."

"Looking ahead, we will continue to focus on our return to profitability by increasing utilization of our existing rig fleet and further reducing debt levels and interest expense through additional asset sales and cash flow," Parker concluded.