Helmerich & Payne to Build Five FlexRigs

Helmerich & Payne has signed separate term contracts with two exploration and production companies to operate a total of five new FlexRigs(R). Each rig contract includes a minimum term of three years and contains certain performance adjustments. Other terms and customer names were not disclosed.

H&P will construct four FlexRig4s at an average estimated construction cost of $13.2 million each, and will construct one FlexRig3 at a cost of $14.1 million. Compared with the previously announced FlexRig4s, the new FlexRig4s will have different equipment requirements which increase the estimated construction costs. Field delivery of the five rigs is scheduled for one rig per month beginning February 2006.

Company President and CEO, Hans Helmerich commented, "These new contracts bring our recent construction commitments to a total of 18 new FlexRigs with four different customers. Clearly, the value of FlexRig technology is being recognized, as well as our commitment to highly efficient and safe operations in the field. All of these contracts provide very attractive financial returns to the Company."