Parker Drilling Wins Three Land Rig Contracts

Parker Drilling was awarded new contracts for three land rigs to subsidiaries operating in Mexico and Kazakhstan.

In Mexico, Parker has signed a two-year contract with an option for an additional year with GPA Energy S.A. de C.V., utilizing Rig 122 for work in northern Mexico. The rig is expected to mobilize and begin operations in the fourth quarter.

In Kazakhstan, Parker was awarded a two-rig, one-year contract with options by Maersk Oil Kazakhstan for land drilling services utilizing Rig 247, which is completing refurbishments, and Rig 269, the first of Parker's new high-efficiency 2,000 horsepower land rigs. The rigs will begin mobilizing to location during the first quarter of 2008. Parker is also constructing a second rig of this class in the U.S. with an anticipated completion date during the second quarter of 2008.

David C. Mannon, Parker Drilling's president and chief operating officer, said, "Today's rigs are being pushed harder than ever to drill deeper, more complex wells in increasingly remote, frontier locations. Not only must a drilling contractor provide a rig achieving an ever-higher standard of performance and efficiency, customers expect safety and reduced environmental impact to be paramount in the rig's design.

"We listened to our customers, and answered the challenge with a versatile, state-of-the-art, fast-moving rig with a smaller location footprint that is also one of the most powerful hydraulically raised land rigs in the industry."

Parker's new class of high-efficiency rigs incorporates some of the most advanced features available in the global land rig market, including:

- A hydraulic cylinder system used to raise both the mast and the substructure to the vertical, without the use of the engines and drawworks, decreasing rig-up cost, time, and emissions;

- A "plug and play" adaptability, allowing the operator to quickly and easily customize the rig's individual equipment to the specifics of the drilling program;

- A reduced number of transport loads, resulting in increased mobility and faster rig-up;

- Enhanced safety features, including swing-up structures requiring fewer crewmembers for rig-up and allowing crews to work near ground level during rig-up;

- A fully automated drilling system featuring fuel-efficient AC technology and variable frequency drive, substantially automating the drilling process and enhancing power delivery;

- A 1 million pound hookload mast and a 2,800 horsepower drawworks;

- Sufficient rig floor clear height for managed pressure operations;

- A new mud system design, allowing easy cleaning, efficient mud processing in variable conditions, and flexible equipment additions for specific well programs.

Mannon concluded, "Parker has an extensive track record of delivering the right rigs for our clients, and the newest additions to our fleet are no exception. Our newest class of land rigs is equipped to power a safer, more efficient operation, true to our strategic vision of providing a fleet of technologically advanced rigs preferred by our customers in all market conditions."