TODCO Reactivates THE 252 Jackup

TODCO will reactivate a cold-stacked drilling rig against a term contract from an independent oil and gas company.

THE 252, a 250 foot mat slot jackup rig, will be reactivated for an estimated cost of $13.5 million against a one-year term contract with contract revenues of approximately $31.0 million. Approximately $4.2 million of the cost to reactivate the unit will be capitalized with the remainder being expensed over the 120-day reactivation period.

Jan Rask, President and Chief Executive Officer of TODCO, said "We are pleased to announce the signing of this term contract to facilitate the reactivation of our jackup rig, THE 252. With 6 remaining cold stacked jackup rigs and 10 cold stacked inland barge rigs, all in the U.S., we are positioned to benefit from the tight market conditions that exist in our industry today."