2009-08-17-2008-05-01

To acquire 50% interest in JV.

An affiliate of Saudi Arabia-based Abdullah Rasheed Al-Rushaid Co. plans to acquire the 50% interest held by Parker Drilling Co., Houston, (NYSE: PKD) in their Saudi Arabian joint venture, Al-Rushaid Parker Drilling Co. Ltd. for $2 million. Each party has agreed to waive any claims that it may have against the other party. Parker anticipates this transaction will result in a reported net loss of approximately $1.5 million. Parker chairman and chief executive Robert L. Parker Jr. says, "After a careful and thorough analysis, we concluded that this joint venture was not the best organizational structure for applying our project management expertise and disciplined processes; therefore, we have decided to end our participation in the joint venture. As noted in our public filings, we anticipated that completion of construction and commissioning of the rigs would require significant additional capital due primarily to cost overruns, delays and remedial work." The deal was expected to close in April.