The Houston-based firm picked up net proceeds of US$40 million for the sale of the 11J, 15J, 20J, 21J, and 22J jackup rigs and the 2P, 3P, 10P, and 41P platform rigs.

The buyer was Hercules Assets LLC, which bought the jackups and platforms and all their related assets. However, the sale to Hercules did not include the 14J or 25J jackups.

According to Parker Drilling, “Earlier this year, the Company received insurance proceeds for 14J and applied those proceeds towards debt reduction. The Company is pursuing offers for 25J separate from this transaction.”

It is understood Parker Drilling received US$27 million from the insurers for 14J.

In a statement Parker Drilling President and CEO Robert L. Parker Jr said, “We are pleased to move ahead with our asset sales program. The increased financial flexibility afforded us due to reduced interest expense will enhance the Company’s ability to compete more effectively in our core operations areas, and is a significant step in the process to position us for future growth.”

“Looking ahead, we will continue to focus on our return to profitability by increasing utilisation of our existing rig fleet and further reducing debt levels and interest expense through additional asset sales and cash flow,” he added.

It is believed the company’s long-term debt stands at US$881.2 million with interest factored into the equation.