Rowan Reports on Condition of Gulf of Mexico Fleet Following Hurricane Ike

2008-09-16 23:35:02 -

www.rowancompanies.com - Rowan Companies, Inc. (NYSE:RDC) announced today that it has completed an initial aerial survey of its nine rigs in the Gulf of Mexico. All of the Company's rigs were on location, with the exception of the Rowan-Anchorage. The Company is undertaking efforts to locate the rig but believes it may have capsized and sunk at its pre-storm location

offshore Louisiana. All appropriate regulatory agencies have been notified.

In addition, Rowan's Sabine Pass, Texas facility encountered a significant storm surge and is expected to be out of commission for some time. The Company's newbuild jack-up, Rowan-Mississippi, which is stationed there for final outfitting, was apparently struck by another vessel during the storm. The Company's initial assessment is that the damage is limited and should not delay the rig's scheduled delivery.

Rowan's other rigs in the Gulf Coast area appear to have sustained minimal damage but a complete evaluation of their condition will require a closer inspection upon the return of the Company's drilling personnel. Crew members have begun returning to their assigned rigs and normal operations should resume as soon as possible.

The Rowan-Anchorage was a LeTourneau 52-class slot jack-up rig. The rig had been secured at its pre-storm location in Vermillion Block 201 and all personnel were evacuated prior to the arrival of Hurricane Ike. It was insured for $60 million, less a $17.5 million windstorm deductible, and had a carrying value of approximately $4.5 million. The rig had been operating under a well-to-well contract at a day rate of approximately $60,000.

Rowan Companies, Inc. is a major provider of international and domestic contract drilling services. The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries. The Company's stock is traded on the New York Stock Exchange. Common Stock trading symbol: RDC.

This report contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected financial performance of the Company that are based on current expectations and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected by the Company. Among the factors that could cause actual results to differ materially include oil and natural gas prices, the level of offshore expenditures by energy companies, energy demand, the general economy, including inflation, weather conditions in the Company's principal operating areas and environmental and other laws and regulations. Other relevant factors have been disclosed in the Company's filings with the U. S. Securities and Exchange Commission.

Rowan Companies, Inc.
Vice-President - Investor Relations
William C. Provine, 713-960-7575
www.rowancompanies.com