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Ability Drilling AS (OSL:ADRL) Ability Drilling - Third quarter 2008
Ability Drilling achieved above 95% utilization on land rig nr 1 in September. "This is an operational milestone after a challenging start up," says CEO Hans Petter Eikeland. Furthermore, Ability Drilling was awarded a contract for drilling of wells for gas storage caverns by Scottish and Southern Energy in August. This means that the company now has been awarded contracts in all three core markets; oil drilling, geothermal drilling and gas cavern drilling.
Operational and contract success has been subdued by delivery delays by rig manufacturer, resulting in a revised delivery schedule for the remaining rigs. Ability Drilling are negotiating with TTS Sense to postpone the delivery for rig 5-9 by 12 months. As part of the agreement, Ability Drilling will obtain the necessary flexibility with respect to rig 5-9. "We must now adapt to a slower roll out of our business plan, and will accordingly lower operational and financial risk going forward," Mr. Eikeland comments.
Mr. Eikeland also points to the fact that Land rig nr 2 currently is being transported to the Netherlands for a complete rig spread test before commencement.
Ability Drilling expects its core markets to remain strong long term, with a possible adjustment short term due to effects of the recent financial turmoil. "However, we are building a positive track record in the markets and are confident that our concept will succeed. In compliance with the short term situation, we have adjusted roll out plans, are reducing costs and risk profile to secure our operational and financial strength," the CEO sums up.
For further information, please contact:
CEO Hans Petter Eikeland, phone +47 56 32 43 43 , or +47 93 20 81 77 CFO Kenneth Tunes, phone+47 56 32 43 43 , or +47 91 54 49 01
About Ability Drilling: About Ability Drilling ASA: Ability Drilling aims to become the preferred operator and provider of Rack & Pinion (R&P) rigs in its defined core markets, by combining fourth generation drilling technology with outstanding drilling experience from offshore North Sea exploration and production activities.
The Company currently targets onshore oil operations in the MENA (Middle East North Africa) market, the geothermal market in Europe, as well as the market for drilling of LNG reservoirs. Both the land rig market in MENA and the geothermal segment in Europe are markets with strong growth and significant potential, while the market for drilling of LNG reservoirs is an emerging growth segment. Ability Drilling targets extension of the geographical footprint within all current focus areas.
Ability Drilling has already ordered 11 rigs, of which 7 rigs are still under construction. In addition, the company has options for 33 additional land rigs and 40 additional work over rigs.
Ability Drilling is listed on Oslo Axess, with ticker ADRL.
This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
