Parker Drilling

PARKER DRILLING
www.parkerdrilling.com

Contact Information
5 Greenway Plaza, Suite 100
Houston, Texas 77046
T: 281-406-2000

CIS/Eurasia/Africa/Middle East
David McCann
Director, Business Development
T: 281-406-2000

History in Turkmenistan
In 2003, Parker Drilling and Calik Enerji signed a three-year contract, with an optional two-year extension, for two land rigs in western Turkmenistan’s Korpedje Field, under development by Turkmenneft.[i] In November 2005, the company reported that there was a well control incident at Rig 247, operating in Turkmenistan.[ii]

In June 2007, Parker Drilling announced that it had “signed a two-year contract with an option for an additional year, utilizing Rig 230 for work in eastern Turkmenistan.”[iii] According to the company’s 2009 Annual Report, it conducted minimal drilling operations in Turkmenistan during 2008, producing an increase of $3.6 million in revenue over 2007 figures.[iv]

In 2008, the U.S. Securities and Exchange Commission requested information from Parker Drilling regarding possible investments by the company in Iran. The request read, in part:

We are aware of various news reports indicating that since 2003 you have been engaged in drilling wells at Korpeje in Turkmenistan, from where natural gas is exported by pipeline to Iran. Your Form 10-K does not include disclosure regarding any contacts with Iran, a country identified by the State Department as a state sponsor of terrorism, and subject to U.S. economic sanctions and export controls. Please describe to us the nature and extent of your past, current, and anticipated contacts with Iran, if any, whether through direct or indirect arrangements.[v]

In response, Parker Drilling Company reported the following in March 2010:

Pursuant to an internal review, we have identified certain shipments of equipment and supplies that were routed through Iran as well as other activities that may have violated applicable U.S. laws and regulations. In addition, we have engaged in drilling wells in the Korpedje Field in Turkmenistan, from where natural gas may be exported by pipeline to Iran.[vi]

Current Scope of Operations
In June 2010, Parking Drilling participated in the first American business mission to Turkmenistan, as part of the US Turkmenistan Business Council.[vii]

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[i] NEFTE Compass, “Turkmenistan: Parker Drilling Signs up for Three Years (Teams with Chalyk Energy for Oil Rigs in Korpedje Field with Turkmenneft),” 2003,http://www.highbeam.com/doc/1G1-115756246.html. Accessed February 25, 2011.

[ii] Parker Drilling Company, “Parker Drilling Reports Well Control Incident in Turkmenistan,” Rigzone,2005, http://www.rigzone.com/news/article.asp?a_id=27206&rss=true. Accessed February 25, 2011.

[iii] Reuters, “Parker Drilling Company Announces New Contracts for Rigs,” 27 Mar. 2007, http://www.reuters.com/finance/stocks/keyDevelopments?symbol=PKD&pn=3. Accessed February 25, 2011.

[iv] Parker Drilling, 2009 Annual Report, 37, http://parkerdrilling.investorroom.com/index.php?s=120. Accessed February 25, 2011.

[v] United against Nuclear Iran, Parker Drilling Co.,http://www.unitedagainstnucleariran.com/company/parker-drilling-co. Accessed February 25, 2011.

[vi] United against Nuclear Iran.

[vii] US-Turkmenistan Business Council (2010).