Akita Drilling sets record profits in ’04

Akita Drilling, the leading contractor in Canada’s north, posted record earnings of C$20.9 million in 2004 on sales of C$136 million, up from its 2003 profits of C$18.78 million on revenues of C$124.1 million.

Cash flow for last year grew to C$34 million from C$30.4 million in 2003.

Akita said its rig utilization for 2004 was 52.2 percent, only fractionally behind the industry average of 53 percent and slightly down on 2003’s 54.7 percent.

During the year, the company added a 10,800-foot rig at a cost of C$4.8 million and has just signed a four-year contract with Pioneer Natural Resources Alaska and Doyon Drilling to build and operate a rig for exploratory drilling on the North Slope (see related articles in March editions of Petroleum News).

The Alaska rig will be built in Canada this summer and start operations in 2006.

In addition, Akita, with one of its northern joint venture partners, purchased the assets of a private Alberta well servicing company last fall. The three well-servicing rigs give Akita confidence that it now has the nucleus of personnel to support the addition of one or more purpose-built rigs for the north.

—Gary Park