Helmerich & Payne updates rig construction
  by: OilOnline
  Thursday, August 31, 2006

Helmerich & Payne, Inc. has provided updates on production delays and cost increases. The entire industry continues to experience labor and equipment shortages which have resulted in construction delays and increased costs. The Company currently expects to complete construction of 24 new FlexRigs by the end of fiscal 2006 (September 30, 2006), and of the remaining 42 by the end of fiscal 2007. The level of capital investment estimated for the construction of the 66 new builds has increased by an average of approximately 16% per rig from original estimates, which is expected to have a relatively small impact on the Company's future earnings through incremental depreciation. This increase in depreciation is expected to impact annual earnings per share for fiscal 2007 and 2008 by approximately $0.04 and $0.05, respectively.

Helmerich & Payne, Inc. is a contract drilling company that owns 108 U.S. land rigs, 11 U.S. platform rigs located in the Gulf of Mexico, and 27 international rigs, for a total of 146 rigs. Included in the total fleet of 146 rigs are 69 H&P-designed and operated FlexRigs. In addition, 47 new FlexRigs are scheduled to be completed and deployed during the remainder of 2006 and 2007.