Independence Contract Drilling (ticker: ICD) has made shale play drilling its primary business target with the introduction of its ShaleDriller® series rigs.
Demand for Independence’s rigs is largely focused in the Permian basin, with the Eagle Ford and Haynesville also playing home to rig operations.
Source: Independence Contract Drilling
Walking rigs nice fit for shale development
The ShaleDriller® rigs are built with a hydraulic “walking” system grants the rig an additional degree of mobility to move from well-location to well-location on a single pad. Independence expects that, as the industry transitions to the use of larger and larger pads, with longer lateral wells, it will be in a good position to provide the service of its ShaleDriller® 200 Series rigs, which are specialized for lateral drilling into shale plays.
Source: DrillingContractor.org
During Q1, 2017, Independence saw a fleet utilization of 91.7% and the beginning of its final fleet conversions from the 100 series rigs to 200 series rigs. Independence anticipates that the conversions will be complete in Q3, 2017. The company currently has 14 rigs, with an additional two nearing completion. During Q1, Independence logged 1,072.9 rig operating days, with an average of 11.9 rigs operating.
Byron Dunn, President and CEO of Independence, noted in the company earnings call on April 27th, 2017, that the company received inquiries about purchasing multi-rig packages for longer terms, up to over a year. Dunn mentioned that, “this signals a tightening of the market for pad-optimal rigs and sets the stage for upward pressure on dayrates.”
Independence Contract Drilling is presenting at EnerCom’s The Oil & Gas Conference® 22
Independence will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
