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Rowan Provides Fleet Contract Status Update

Stocks in this article: RDC

HOUSTON, July 18, 2014 /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 July 18, 2014.  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:

  • Rowan Renaissance: Rig is currently operating offshore West Africa in Angola. Rig experienced 24 days off rate time during 2Q/3Q 2014 for previously planned commissioning of late arriving equipment, which has been completed. Rig also experienced approximately 19 days off rate time during 2Q 2014 for previously disclosed issues with the subsea systems. This has been corrected and similar issues with the remaining drillships are not anticipated.
  • Rowan Gorilla VI : Increased shipyard off rate time by 12 days due to completion of equipment commissioning during 3Q 2014. The Company recently received positive results from an audit conducted by the Norwegian Petroleum Safety Authority and expects the rig to resume operations in mid-August 2014 under its existing Acknowledgement of Compliance.
  • Cecil Provine : Rig experienced 37 days off rate time during 2Q/3Q 2014 for repairs and inspections which took longer than anticipated. During that time, as previously disclosed, the Rowan Gorilla IV was substituted for a one-well contract estimated at 40-45 days with Fieldwood Energy in the Gulf of Mexico at a day rate of $125,000.
  • Rowan Louisiana : Awarded a one-well contract estimated for 75-80 days with Energy XXI in the Gulf of Mexico which commenced at the beginning of July 2014 at $108,000 per day.

For the second quarter and full-year of 2014, the Company expects jack-up out-of-service time to be approximately 13% and 9-10%, respectively.  No operational downtime is included in projected out-of-service days, but the Company estimates jack-up operational downtime to account for approximately 2.5% of in-service days in current and future quarters.  Except for the out-of-service days specified in the Monthly Fleet Status Report for the Rowan Renaissance, the Company does not currently expect any further drillship out-of-service days in 2014, and continues to expect operational downtime to be approximately 5% after a break-in period of approximately six months up to one year when operational downtime could be somewhat higher.

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.  

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