H&P: Early Assessment Finds No Major Damage

Helmerich & Payne, says that early field reports indicate that Hurricane Ike has apparently not resulted in material damage to any of its drilling rigs or facilities. It is uncertain at this time however, to what extent the loss of power and the impact on the labor force in the Houston and southeast Texas area will affect the Company's rig construction facilities and efforts, as well as those of its vendors. Furthermore, the Company reported that some of the facilities of a primary rig fabricator and supplier were impacted by flood waters and it is uncertain what their recovery time and corresponding impact to the Company's new build rig delivery schedule will be at this time. Company personnel were evacuated from offshore platforms and other onshore areas in the projected impact zones, and no personal injuries were sustained. At this point, the Company does not expect operating disruptions attributable to Hurricane Ike to have a material impact on its earnings.

It will take several days for the Company to confirm its preliminary assessment corresponding to Hurricane Ike's impact on its assets and operations. A subsequent announcement will be made should the Company find any material damage to its assets or identify any other condition that could materially impact the Company's earnings or operations.

In relation to a prior storm, the Company affirmed that Hurricane Gustav did not impact its operations or assets in any significant manner.

Helmerich & Payne, Inc. is primarily a contract drilling company. As of September 15, 2008, the Company's existing fleet included 184 U.S. land rigs, 29 international land rigs and nine offshore platform rigs.

Read more on the aftermath of Hurricane Ike in Rigzone's Special Coverage After the Storm.

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