Grey Wolf gives preliminary damage assessment
  by: OilOnline
  Wednesday, September 28, 2005

Grey Wolf, Inc. has announced the preliminary assessment of damage incurred during Hurricane Rita. Operations were suspended on 40 of the Company's 108-marketed rigs in anticipation of the hurricane. The Company has returned to work 37 of these 40 rigs and expects minimal financial impact related to the hurricane on these rigs.

Company personnel have not been able to return to the other three rigs. These rigs are located in Cameron and Vermillion Parishes in southern Louisiana, and prior to the storm the Company had removed a majority of the engines and electrical equipment from these rigs. The rigs have been viewed from the air, as their locations are not accessible due to flooding, and the rigs appear to be intact. The Company currently does not have an estimate of when these rigs will be accessible and the extent of the economic loss, if any, the Company may incur. The Company maintains rig physical damage insurance on all of its rigs. Two of the rigs are working under turnkey contracts and one under a daywork contract. All the contracts for these three rigs have force majeure provisions. Grey Wolf will update this information once personnel are able to assess any damage.