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Ability Drilling AS (OSL:ADRL) Date: 22 August 2008
Ability Drilling - Second quarter and half year 2008
Ability Drilling entered the operational phase in Q2. Start up issues, which hampered the utilization in the first months of operation, are now solved and the rig is expected to be in steady operation going forward. New delays from sub supplier TTS Sense have changed the rig delivery schedule.
The company has now the first land rig in operation in Jordan. After start up issues we now expect steady operation going forward, says CEO, Hans Petter Eikeland.
As announced early August, Ability Drilling is experiencing a delivery delay of 8 weeks on Land rig 2, due to slippages from sub supplier TTS Sense EDM. The delay on Land rig 2 will postpone delivery of Land rig 3 and may cause slippages on other rigs as well. - We take these slippages very seriously, and have engaged a third party to evaluate the whole delivery schedule.
However, the company has a good dialogue with all its customers -and the current delay is not expected to have consequence for the existing contracts.
This month, Ability Drilling was awarded a contract with an estimated value of NOK 100 million for drilling of wells for gas storage caverns with Scottish and Southern Energy plc.(SSE) The contract is for drilling operations related to the Aldbrough Gas Storage Project II, Eastern York. This is a joint venture between SSE and StatoilHydro. - With this contract, Ability Drilling, has established itself in all three core market areas, and the addressable markets are huge and have a strong demand for new technology, Eikeland concludes.
Ability Drilling plans to have two land rigs and two work over rigs in operation by year end.
Full quarterly and half year report and presentation are attached.
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
Ability Drilling is listed on Oslo Axess - ticker ADRL
