Exhibit 99.1
Bronco Drilling Company, Inc. Announces Monthly Operating Results
OKLAHOMA CITY, October 10, 2008 (BUSINESS WIRE)—Bronco Drilling Company, Inc., (Nasdaq/GM:BRNC), announced today operational results for the month ended and as of September 30, 2008.
Utilization for the Company’s drilling fleet was 84% for the month of September compared to 84% for the previous month. Utilization for the third quarter of 2008 was 84% compared to 82% for the second quarter. The Company had an average of 42 marketed drilling rigs in September compared to 41 in the previous month. Average marketed drilling rigs for the third quarter of 2008 were 42 compared to 45 for the previous quarter. The decrease in marketed drilling rigs is due to the winterization of rigs to be deployed to the Bakken Shale and preparation of rigs to be deployed to Mexico as part of the tender Bronco was awarded by Pemex. The average dayrate on operating drilling rigs as of September 30, 2008, was $18,543 compared to $18,138 as of August 31, 2008, and $16,332 for the second quarter of 2008. The increase in average dayrate on operating drilling rigs is partially due to a wage increase initiated in late June for Bronco field personnel that is contractually passed through to Bronco’s customers. The wage increase resulted in a $750 increase in the average dayrate.
Utilization for the Company’s workover fleet was 69% for the month of September compared to 73% for the previous month. Utilization for the third quarter of 2008 was 73% compared to 75% for the second quarter. The Company had an average of 55 marketed workover rigs in September compared to 53 in the previous month. Average marketed workover rigs for the third quarter of 2008 were 54 compared to 53 for the previous quarter.
The Company cautions that several factors other than those discussed above may impact the Company’s operating results and that a particular trend regarding the factors above may or may not be indicative of the Company’s current or future financial performance.
About Bronco Drilling
Bronco Drilling Company, Inc. is a publicly held company headquartered in Edmond, Oklahoma, and is a provider of contract land drilling and workover services to oil and natural gas exploration and production companies. Bronco's common stock is quoted on The NASDAQ Global Market under the symbol “BRNC”. For more information about Bronco Drilling Company, Inc., visit http://www.broncodrill.com.
| | Rig Status Report |
| | as of September 30, 2008 |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Est. Duration (2) |
| | Rig No. | | Horsepower | | Rig Type | | Basin | | Status (1) | | Contract | | Days | | Date |
| 1 | 2 | | 400 hp | | M | | | | I | | | | | | |
| 2 | 4 | | 950 hp | | M | | Piceance | | O | | Term | | 56 | | 11/25/2008 |
| 3 | 5 | | 650 hp | | M | | Anadarko | | O | | Term | | 96 | | 1/4/2009 |
| 4 | 6 | | 650 hp | | M | | Anadarko | | O | | Term | | 149 | | 2/26/2009 |
| 5 | 7 | | 650 hp | | M | | Woodford | | O | | well to well | | | | |
| 6 | 8 | | 1000 hp | | E | | Williston | | O | | Term | | 256 | | 6/13/2009 |
| 7 | 9 | | 650 hp | | M | | Arkoma | | O | | Term | | 93 | | 1/1/2009 |
| 8 | 10 | | 1000 hp | | E | | Anadarko | | O | | Term | | 106 | | 1/14/2009 |
| 9 | 11 | | 1000 hp | | E | | Woodford | | O | | Term | | 187 | | 4/5/2009 |
| 10 | 12 | | 1500 hp | | E | | Anadarko | | O | | Term | | 176 | | 3/25/2009 |
| 11 | 14 | | 1200 hp | | E | | Woodford | | O | | Term | | 284 | | 7/11/2009 |
| 12 | 15 | | 1200 hp | | E | | Haynesville | | O | | Term | | 304 | | 7/31/2009 |
| 13 | 16 | | 1400 hp | | E | | Bakken | | O | | 2 wells | | | | |
| 14 | 17 | | 1700 hp | | E | | Anadarko | | O | | Term | | 344 | | 9/9/2009 |
| 15 | 20 | | 1400 hp | | E | | Bakken | | O | | Term | | 336 | | 9/1/2009 |
| 16 | 21 | | 2000 hp | | E | | Woodford | | O | | 3 wells | | | | |
| 17 | 22 | | 1000 hp | | E | | Bakken | | O | | Term | | | | |
| 18 | 23 | | 1000 hp | | E | | Piceance | | O | | Term | | 93 | | 1/1/2009 |
| 19 | 25 | | 1500 hp | | E | | Woodford | | O | | 3 wells | | | | |
| 20 | 26 | | 1200 hp | | E | | Anadarko | | O | | Term | | 152 | | 3/1/2009 |
| 21 | 27 | | 1500 hp | | E | | Piceance | | O | | Term | | 231 | | 5/19/2009 |
| 22 | 28 | | 1200 hp | | E | | Bakken | | O | | Term | | 213 | | 5/1/2009 |
| 23 | 29 | | 1500 hp | | E | | Woodford | | O | | 3 wells | | | | |
| 24 | 37 | | 1000 hp | | E | | Cotton Valley | | O | | 5 wells | | | | |
| 25 | 41 | | 950 hp | | M | | Anadarko | | O | | 3 wells | | | | |
| 26 | 42 | | 650 hp | | M | | Anadarko | | O | | well to well | | | | |
| 27 | 43 | | 1000 hp | | M | | Haynesville | | O | | Term | | 92 | | 12/31/2008 |
| 28 | 51 | | 850 hp | | M | | Anadarko | | O | | 6 wells | | | | |
| 29 | 52 | | 850 hp | | M | | Anadarko | | O | | 6 wells | | | | |
| 30 | 53 | | 750 hp | | M | | | | I | | | | | | |
| 31 | 54 | | 850 hp | | M | | Woodford | | O | | Term | | 232 | | 5/20/2009 |
| 32 | 55 | | 950 hp | | M | | Chicontepec | | O | | Term | | 457 | | 12/31/2009 |
| 33 | 56 | | 1100 hp | | M | | Anadarko | | O | | Term | | 130 | | 2/7/2009 |
| 34 | 57 | | 1100 hp | | M | | Woodford | | O | | Term | | 172 | | 3/21/2009 |
| 35 | 58 | | 800 hp | | M | | Cotton Valley | | O | | 3 wells | | | | |
| 36 | 59 | | 850 hp | | M | | Bakken | | O | | Term | | | | |
| 37 | 60 | | 850 hp | | M | | Anadarko | | O | | Term | | | | |
| 38 | 62 | | 1000 hp | | M | | Anadarko | | O | | well to well | | 143 | | 2/20/2009 |
| 39 | 70 | | 450 hp | | M | | Anadarko | | O | | well to well | | | | |
| 40 | 72 | | 750 hp | | M | | Cotton Valley | | O | | 4 wells | | | | |
| 41 | 75 | | 750 hp | | M | | Woodford | | O | | Term | | 313 | | 8/9/2009 |
| 42 | 76 | | 900 hp | | M | | Chicontepec | | O | | Term | | 457 | | 12/31/2009 |
| 43 | 77 | | 1200 hp | | M | | Haynesville | | O | | Term | | 183 | | 4/1/2009 |
| 44 | 78 | | 1000 hp | | M | | Chicontepec | | O | | Term | | 457 | | 12/31/2009 |
| 45 | 97 | | 850 hp | | M | | Anadarko | | O | | well to well | | | | |
| | | | | | | | | | | | | | | | |
| M - | Mechanical | | I - | Idle | | | | | | | | | | |
| E - | Electric | | | O - | Operating | | | | | | | | | | |
| 1 | Rigs classified as "operating" are under contract while rigs described as "idle" are not under contract but are being actively |
| | marketed and generally ready for service. | | | | | | | | | | |
| 2 | The estimated contract duration is derived from discussions with our customer regarding their current projection of the days |
| | remaining to complete the project. | | | | | | | | | | |
| | Changes from the prior month are highlighted. | | | | | | | | | |
Cautionary Note Regarding Forward-Looking Statements
The information in this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, comments pertaining to estimated contract duration. Such statements are subject to risks, uncertainties and assumptions, including, but not limited to, early termination by the customer pursuant to the contract or otherwise, cancellation or completion of certain contracts or projects earlier than expected, operating hazards and other factors described in Bronco Drilling Company, Inc’s. Annual Report on Form 10-K filed with the SEC on March 17, 2008, as amended on April 29, 2008, and other filings with the SEC, which are available free of charge on the SEC’s website at www.sec.gov. Bronco cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements.
Contact:
Bob Jarvis
Investor Relations
Bronco Drilling Company
(405) 242-4444 EXT: 102
bjarvis@broncodrill.com
