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Rowan Provides Fleet Contract Status Update

HOUSTON, Sept. 26, 2013 /PRNewswire/ -- Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) announced today that its monthly report of drilling rig status and contract information has been updated as of September 26, 2013.  The report titled "Monthly Fleet Status Report" can be found on the Company's website at www.rowancompanies.com.

(Logo: http://photos.prnewswire.com/prnh/20120827/DA62568LOGO)

Notable events in the current report include:

  • Gorilla III :  Awarded a multi-well contract with a rig share group that includes EOG, Trinity Exploration, Repsol and Centrica estimated at one year commencing mid-October 2013 at $160,000 per day, above its previous day rate of $145,000.
  • Rowan Louisiana :  Awarded a one-well contract for EnVen estimated at 30 days commencing in October 2013 in the Gulf of Mexico at $95,000 per day (no change from previous day rate) and another one-well contract estimated at 45 days at $125,000 per day. 
  • Gorilla VII: 
    • Increased 3Q/4Q 2013 off-rate time by 21 days to 82 days for leg repairs that started in mid-July 2013.  Operating costs will be expensed during this period.  Third party repair costs will also be expensed and are expected to total $6 million in 3Q 2013 and $1 million in 4Q 2013.
    • Previously scheduled 140 days out of service time for repairs, upgrades and inspections is expected to occur sometime during 2015 instead of starting at the beginning of 2Q 2014.  Rig is expected to be off-rate for 21 days for inspections during 3Q 2014.  
  • Gorilla VI:  Increased 4Q 2013 / 1Q 2014 out of service time by 30 days to a total of 105 days for repairs, upgrades, customer required modifications and inspections.  Rig is expected to receive compensation for the additional 30 days of out of service time which will be amortized over the contract term and is included in the day rate causing the day rate to rise from the previously reported $350,000 to $358,000
  • Gorilla V:  Previously scheduled 30 days of off-rate time for inspections is expected during 1Q 2014 instead of 4Q 2013.  Rig is expected to be out of service for an estimated 140 days in mid-2015 for repairs, upgrades and inspections.
  • Gorilla II :  Increased 3Q 2013 off-rate time by 10 days to a total of 75 days for repairs, upgrades and inspections.  3Q 2013 out of service days include 30 days of compensated rig mobilization which will be amortized over the contract term and is included in the day rate causing the day rate to rise from the previously reported $164,000 to $169,000.

Out-of-service days include days for which no revenues are recognized other than operational downtime and cold-stacked days.  The Company may be compensated for certain out-of-service days, such as for shipyard stays or for transit periods preceding a contract.  However, recognition of any such compensation received is deferred and recognized over the period of drilling operations.  Operational downtime is when a rig is under contract and unable to conduct planned operations due to equipment breakdowns or procedural failures.  No operational downtime is included in projected out-of-service days, but the company estimates operational downtime to account for approximately 2.5% of in-service days in current and future quarters. 

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