Article: Oil States Executes Term Contracts to Expand Drilling Rig Fleet.

HOUSTON, Oct. 18 /PRNewswire-FirstCall/ -- Oil States International, Inc. today announced that its land drilling subsidiary, Capstar Drilling, L.P., has entered into firm, two-year drilling contracts with an independent E&P company to build a total of two fit-for-purpose rigs for the Rocky Mountain region. The rigs under construction are expected to begin work in June and August of 2007. Construction costs, totaling approximately $13.4 million, will be financed with funds available under Oil States' existing credit facility. Once complete, these rig additions will bring Oil States' rig fleet in the Rockies to ten rigs and its total rig fleet to 34 rigs.

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