Rowan to resume construction of fourth EXL class jack-up rig

Tue. October 06, 2009; Posted: 09:06 AM

Oct 06, 2009 (Datamonitor via COMTEX) -- RDC | Quote | Chart | News | PowerRating -- Rowan Companies, a provider of international and domestic contract drilling services, has announced that it will resume construction of its fourth EXL class jack-up rig at the Keppel AmFELS shipyard in Brownsville, Texas, with delivery expected in the first quarter of 2012.

In late 2007, Rowan has signed construction contracts with Keppel for four EXL (enhanced LeTourneau Super 116E) class jack-up rigs.

The EXL will employ the new technology to drill high-pressure/high-temperature and extended-reach wells in jack-up markets throughout the world, and will be equipped with a hook-load capacity of two million pounds, 70ft of cantilever reach, 477ft of leg length, and the mud pumping horsepower to drill up to 35,000ft.

The company has said that its first three EXL rigs remain on schedule and on budget, with deliveries scheduled for the second, third and fourth quarters of 2010, respectively.

The company estimates that the capital remaining to complete construction of the fourth EXL rig is $120 million, net of approximately $30 million of penalties and excess inventory that would have been incurred if the project had been canceled.

The decision to resume construction is not expected to significantly impact the company's 2009 capital expenditures which are estimated at $630 million, but will increase expected 2010 capital expenditures by around $50 million to a range of approximately $375 million to $400 million. The company anticipates funding these capital expenditures through available cash and operating cash flows.

Construction also continues on schedule and on budget for Rowan's second and third 240C jack-up rigs, the Ralph Coffman and the Joe Douglas, with delivery of those rigs scheduled for the first quarter of 2010 and the third quarter of 2011, respectively.

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For full details on Rowan Companies Inc (RDC) click here. Rowan Companies Inc (RDC) has Short Term PowerRatings of 4. Details on Rowan Companies Inc (RDC) Short Term PowerRatings is available at This Link.

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