Rowan Companies confirmed that it has entered into three-year contract with EnCana for four new 2000-horsepower land rigs.

The first rig is scheduled for May 2009, with each additional rig to follow approximately every three months thereafter.

Each one will be situated in Texas, Louisiana or Oklahoma.

Danny McNease, Rowan chairman and chief executive officer, stated: "These contracts show our customers' continued confidence in the strength of the deep-gas drilling market in the United States and in the quality of Rowan's drilling equipment and personnel."

The contract covers 18 rig-years, and is due to generate around $175 million (£98.6 million) in drilling revenues.

Additional rigs, one contracted with EnCana and one with Common Resources, are expected to be delivered in November 2008 and January 2009.

In other recent Rowan news, the company was awarded a drilling contract valued at $160 million by McMoRan Oil & Gas.

The drilling will take place in the Gulf of Mexico.

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