Parker Drilling Closes Sale of South American Land Rigs
Parker Drilling Company
|Thursday, June 16, 2005
Parker Drilling has completed the sale of four drilling rigs and their related assets to affiliates of Saxon Energy Services Inc., for approximately $23 million. With the closing of this transaction, the Company will have sold five of its seven rigs in South America, pursuant to three of the four definitive agreements executed on May 6, 2005. The transaction for the sale of the first rig closed simultaneously with the signing of the definitive agreements and resulted in receipt of approximately $4 million. It is anticipated that the sale of two remaining rigs will be completed within 60 days at which time the Company will receive $7 million currently in escrow. A portion of the proceeds related to this closing will remain in escrow pending completion of customs documentation and confirmation as to any withholding obligations, but the Company anticipates substantially all of the escrowed funds will be released during the third quarter. The Company anticipates that the majority of the gain associated with the $34 million in proceeds from the four transactions will be reported during the third quarter consistent with the release of the escrow funds.
As announced earlier, net proceeds from the sale will be used to retire
debt and will result in the Company achieving approximately 90% of its
$200 million debt reduction goal.