UPDATE 1-Parker Drilling sees slow recovery in int’l drilling

* Sees slow recovery in international E&P spending

* Says moratorium to impact growth in rental tools segment

Aug 25 (BestGrowthStock) – Parker Drilling Co (PKD.N: ) said on
Wednesday it sees slow recovery from last year’s decline in
exploration and production spending in its key international
drilling segment.

The company’s international drilling segment revenue, which
represented more than half of its total revenue in 2009, is
also likely to be affected due to a contract termination by
Mexican oil and gas explorer GPA Energy on Tuesday.

“Gulf of Mexico drilling moratorium will impact growth (in
the rental tools segment) in 2010,” Parker Drilling said in an
oil and gas conference presentation.

However, the contract driller said it sees higher demand
for its rental tools segments on growing shale activity, which
is now lucrative in the aftermath of the oil spill.

Exploration and production companies like Plains
Exploration & Production (PXP.N: ) have started shifting their
focus towards relatively safer onshore projects due to the
uncertainity surrounding the drilling moratorium in the U.S.

The Houston-based company’s shares, which have lost a
quarter of their value in the last six months, were down over 2
percent at $3.72 Wednesday on the New York Stock Exchange.
(Reporting by Thyagaraju Adinarayan in Bangalore; Editing by
Vyas Mohan)

UPDATE 1-Parker Drilling sees slow recovery in int’l drilling