Parker Drilling Updates Kazakhstan Tax Case
HOUSTON, Jan. 9 /PRNewswire-FirstCall/ -- Today, Parker Drilling Company (NYSE: PKD), a U.S. company and worldwide provider of drilling and drilling-related services, reported that in December 2007 a subsidiary paid $26 million in income taxes to the Republic of Kazakhstan pursuant to a previously reported tax assessment. The payment is exclusive of interest and net of estimated taxes previously paid of approximately US$12 million. The Company will receive a foreign tax credit for this payment against future tax payments which would otherwise be paid to the United States Treasury, excluding any currency exchange losses. The Kazakhstan branch of the Company's subsidiary has filed an appeal requesting a reduction in the interest.
Parker has funded a portion of this tax payment by borrowing US$20 million of approximately US$45 million available under its revolving credit facility. It is anticipated that this US$20 million of borrowings will be repaid during the latter half of 2008. Parker also anticipates that it can fund any interest ultimately assessed from cash on hand or from additional borrowings under its revolving credit facility.
This release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including the amounts that may ultimately be paid in interest and the period in which borrowings against the revolver will be repaid are forward- looking statements. Although the Company believes that its expectations stated in this release are based on reasonable assumptions, actual results may differ materially from those expressed or implied in the forward-looking statements. For a detailed discussion of risk factors that could cause actual results to differ materially from the Company's expectations, please refer to the Company's reports filed with the SEC, and in particular, the Annual Report on Form 10-K for the year ended December 31, 2006. Each forward-looking statement speaks only as of the date of this release, and the Company undertakes no obligation to publicly update or revise any forward-looking statement.
SOURCE Parker Drilling Company
Released January 9, 2008