Paragon gets more work for jack-up rigs

Drilling contractor Paragon Offshore has been awarded work for three of its jack-up drilling rigs. 

According to Paragon’s fleet status report on Wednesday, the jack-up rig MSS1 has been awarded a one-well contract in the UK sector of the North Sea with Centrica.

The contract with Centrica will start in early August and end in mid-October 2017. The dayrate has not been disclosed.

Furthermore, two jack-up rigs, the B152 and Dhabi II, have each been awarded a two-year contract extension with NDC (ADOC) offshore UAE. Both contracts are at an undisclosed new dayrate effective as of early April 2017.

The first rig’s extension is from late November 2017 to late November 2019 and from mid-July 2017 to mid-July 2019 for the second rig.

More red ink for Paragon

Also on Wednesday, the driller posted a first quarter 2017 net loss of $70.4 million as compared to first quarter 2016 net loss of $5.2 million.

Results for the first quarter of 2017 included a $0.4 million non-cash asset impairment charge related to the pending sale of the jack-up Paragon B153 for use as a mobile offshore producing unit. Excluding this charge, Paragon’s adjusted net loss for the first quarter of 2017 was $70 million.

Total revenues for the first quarter of 2017 were $57.4 million compared to $61 million in the fourth quarter of 2016 and $265.1 million in 1Q 2016. Paragon reported that utilization for its marketed rig fleet declined to 21 percent for the first quarter of 2017 compared to 22 percent for the fourth quarter of 2016.

Paragon’s total contract backlog at the end of March was approximately $183 million compared to $242 million at the end of last year.

Offshore Energy Today Staff