TODCO Announces Cold-Stacked Drilling Rig Reactivation

TODCO has signed of a six-month drilling contract with an independent oil and gas company for its cold-stacked Rig 49, a 3000-hp posted inland barge rig. The rig will begin work before year-end in the inland waterways of south Louisiana and Texas. Total revenues from the contract are estimated at $6.5 million. Total cost to reactivate the unit is estimated at $3.7 million with approximately $2.4 million of the $3.7 million being expensed as incurred during the 60-day reactivation period.

Jan Rask, President and Chief Executive Officer of TODCO, said "This contract represents our third cold-stacked rig reactivation within the last five months which is a clear indication of current market strength. As the only contractor with significant cold-stacked drilling rig capacity in the U.S. Gulf of Mexico, we will continue to adhere to our strategy of only reactivating rigs with customer support."