Rowan Companies, Inc. announced an agreement to sell its only semi-submersible rig, the Rowan-Midland, to ATP Oil & Gas Corporation ("ATP") for approximately $60 million in cash. Payment for the rig will be made over a 15- month period and title will transfer at the conclusion of the payment period. The Company expects to record a pre-tax gain on the transaction in the range of $45-50 million, which will be recognized over the payment period.
The Midland will be utilized by ATP as a floating production platform. Rowan will retain ownership of the drilling equipment on the rig. In addition, Rowan will continue to provide a number of operating personnel to ATP under a separate services agreement.
Danny McNease, Chairman and Chief Executive Officer, commented, "This transaction follows several others the Company has executed over the past year in order to focus on Rowan's core business of furnishing premium jack-up drilling rigs."