Pioneer Drilling Company (PDC)

[Golden Cross]

Pioneer invests in new drilling equipment
Tuesday September 5, 10:05 am ET


Pioneer Drilling Co. has put its 60th drilling rig to work in South Texas under a two-year lease contract.
The 1,000-horse-power, trailer-mounted electric rig is the ninth of 16 new rigs planned for launch this year as part of the company's new-build program. Company officials declined to reveal who is leasing the rig.

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The company has also ordered 70 iron roughnecks and power slips for approximately $18.3 million -- plus $3 million in installation costs. The iron roughnecks are used to spin up and spin out drill pipe and are safer to use, says Red West, Pioneer's executive vice president and chief operating officer.

"(Iron roughnecks) will greatly reduce costly and dangerous accidents associated with the use of spinning chains and rotary tongs," he says.

Wm. Stacy Locke, Pioneer's president and CEO, says the company is continuing to invest in building a premium land-drilling fleet that will command superior dayrates and will remain in demand regardless of market swings.

"High quality and safe operations attract premium customers for Pioneer to partner with over the long term," Locke says.

San Antonio-based Pioneer (AMEX: PDC - News) is a land-contract drilling-service company serving oil and gas firms.

Published September 5, 2006 by the San Antonio Business Journal