Parker Drilling Does Not Meet Goal for Asset Sale
|Monday, August 04, 2003
Parker Drilling Company said that while to date it has not met its self-imposed goal for asset sales, it continues to expect to reach agreements to sell a significant package of assets. The assets identified for sale include 16 land rigs in Latin America and seven jackup and four platform rigs in the Gulf of Mexico. The company has been in discussions with a third party and had hoped to sign a definitive agreement for the sale of these assets on Friday, August 1, 2003; however, a request for a material change in terms by the third party was rejected by the company and has resulted in a withdrawal of the offer by such party.
"While we are disappointed that the termination of these negotiations will delay our asset sale goals, we anticipate concluding transactions that will achieve a number of our goals," said Robert L. Parker Jr., president and chief executive officer. "The company remains committed to reducing its debt levels by approximately $200 million from assets sales and cash flow.
"In connection with the ultimate sale of an asset package we intend to access the capital markets to raise additional funds to combine with the sale proceeds that will enable us to restructure our debt maturity schedule in a manner that addresses our debt maturities for both 2004 and 2006. The company also intends to secure a new bank credit facility, which will replace the existing facility that expires in October 2003.
"For the future, we will concentrate on expanding the company's presence in certain international oil and gas markets consistent with our long term strategic plan, such as the CIS, the Middle East and the Far East. These efforts will be in addition to our continued involvement in the Gulf of Mexico through our barge rig operations, Quail Tools and related opportunities," Parker said.
Parker Drilling will continue its efforts to reduce its debt-to-equity ratio to the range of 50 to 55 percent through a variety of alternatives, including additional asset sales, use of cash and non-dilutive equity transactions.