Egyptian Drilling Wins Two-Year Contract from Khalda Petrole

Egyptian Drilling Company has been awarded a two year contract with Khalda Petroleum Company (Joint Venture between Apache and EGPC) for work-over operations.

The contract entailed six workover rigs for operation in the Western Desert categorized as follows; two 750 HP rigs, EDC Rig 90 new build and a refurbished EDC Rig 12 in addition to four 500 HP rigs; EDC Rigs 86, 87, 88 and 89. Detailed contract negotiations commenced on December 2004 and culminated with the signing of Workover Standard Contract on March 2005. Currently, EDC Rig 90 and EDC Rig 12 are in Salam Base and in the process of being commissioned. EDC Rig 90 is ready to spud in on the 11th of this month and EDC Rig 12 is estimated to be on the 15th. The other four rigs are expected to commence operations by April/May 2005. Construction of the two rigs was undertaken by DRECO in Canada and completed in approximately nine months. EDC Rig 90 and EDC Rig 12 have the capacity to both workover and drill according to the client's requirement.