8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 3, 2005

 

ROWAN COMPANIES, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	1-5491	75-0759420
(State or other jurisdiction	(Commission file Number)	(IRS Employer
of incorporation)		Identification No.)

2800 POST OAK BOULEVARD
SUITE 5450
HOUSTON, TEXAS	77056-6127
(Address of principal executive offices)	(zip code)

(713) 621-7800

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))

Item 8.01. Other Events

On June 3, 2005, Rowan Companies, Inc. received notification from Tuscan Energy (Scotland) Limited (Tuscan), the operator of one of its Super Gorilla Class jack-up rigs working on the Ardmore Field Development in the North Sea, that Tuscan was insolvent.  As a result, Rowan Companies, Inc. terminated the contract on June 5, 2005.  A press release dated June 3, 2005 and entitled "Rowan Updates Status of its North Sea Contract for Gorilla VII" is attached as Exhibit 99.1.

On June 7, 2005, Rowan Companies, Inc. announced that the Company agreed to sell one of its LeTourneau 52-class jack-up rigs, the Rowan-Texas, for approximately $45 million in cash, after selling expenses. A press release dated June 7, 2005 and entitled "Rowan Announces Sale of Jack-Up Rig" is attached as Exhibit 99.2.

Item 9.01. Financial Statements and Exhibits 

(c) Exhibits

Exhibit
Number	Exhibit Description
99.1	Press Release of Rowan Companies, Inc. dated June 3, 2005
99.2	Press Release of Rowan Companies, Inc. dated June 7, 2005

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

   ROWAN COMPANIES, INC.

  By: /s/ W. H. WELLS

   W. H. Wells,

   Vice President - Finance and Treasurer (Principal Financial Officer)

Dated: June 8, 2005

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INDEX TO EXHIBITS

EXHIBIT DESCRIPTION

Exhibit
Number	Exhibit Description
99.1	Press Release of Rowan Companies, Inc. dated June 3, 2005
99.2	Press Release of Rowan Companies, Inc. dated June 7, 2005

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EX-99.1

EXHIBIT 99.1

Rowan Companies, Inc.

News Release      2800 Post Oak Boulevard, Suite 5450

          Houston, Texas 77056 (713) 621-7800

FOR IMMEDIATE RELEASEJune 3, 2005

ROWAN UPDATES STATUS OF ITS NORTH SEA CONTRACT FOR GORILLA VII

HOUSTON, TEXAS -- Rowan Companies, Inc. (RDC-NYSE) announced today that it has received notification from Tuscan Energy (Scotland) Limited (Tuscan), the operator of the Ardmore Field Development in the North Sea, that Tuscan is insolvent. As a result, production from the Field has been shut in. Rowan expects that Field abandonment and decommissioning activities will require 30-45 days to complete. The Company is marketing Gorilla VII for work starting immediately thereafter.

As previously reported, Gorilla VII commenced operations on the Ardmore Field in mid-2003 for a day rate based upon the average price of oil. In March 2004, Rowan agreed to reduce the day rate to help extend the life of the Project and, in December 2004, extended the contract following the collection of outstanding receivables. During the fourth quarter of 2004, Rowan began to defer recognition of further revenues under the contract until collection and the Company maintains no recorded balance of receivables from Tuscan. Collections from Tuscan since contract inception have totaled approximately $74 million, including $9 million thus far in 2005. Rowan will aggressively pursue collection of the remaining $19.7 million of billed but unrecorded amounts owed by Tuscan under the contract as well as the rig time and incremental costs associated with abandonment activities.

D. F. McNease, Chairman, President and Chief Executive Officer, commented, “The term of this contract has always been dependent upon the economic life of the Ardmore Field. When we extended the contract last December following new investment by the Project’s owners, we noted that our collection of additional amounts was dependent upon cash flows from the Project, but remained optimistic that the contract would continue to generate significant revenues for Rowan. The Project has been both a technological success and profitable for the Company, but it now appears to be at an end.”

Rowan Companies, Inc. is a major provider of international and domestic contract drilling services. The Company also operates a mini-steel mill, a manufacturing facility that produces heavy equipment for the mining and timber industries, and a drilling products division that has designed or built about one-third of all mobile offshore jack-up drilling rigs, including all 24 operated by the Company. The Company’s stock is traded on the New York Stock Exchange and the Pacific Exchange - Stock & Options. Common Stock trading symbol: RDC. For additional information, contact William C. Provine, Vice-President - Investor Relations, at 713-960-7575 or visit Rowan’s website at www.rowancompanies.com.

This report contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected financial performance of the Company that are based on current expectations and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected by the Company. Among the factors that could cause actual results to differ materially include oil and natural gas prices, the level of offshore expenditures by energy companies, energy demand, the general economy, including inflation, weather conditions in the Company’s principal operating areas and environmental and other laws and regulations. Other relevant factors have been disclosed in the Company’s filings with the U. S. Securities and Exchange Commission.

EX-99.2

EXHIBIT 99.2

Rowan Companies, Inc.

News Release      2800 Post Oak Boulevard, Suite 5450

          Houston, Texas 77056 (713) 621-7800

FOR IMMEDIATE RELEASEJune 7, 2005

ROWAN ANNOUNCES SALE OF JACK-UP RIG

HOUSTON, TEXAS -Rowan Companies, Inc. (NYSE: RDC) (“Rowan”) today announced that the Company has agreed to sell one of its LeTourneau 52-class jack-up rigs, the Rowan-Texas, for approximately $45 million in cash, after selling expenses.

The sale of the rig is expected to close within 60 days and the Company expects to record an after-tax gain on the transaction of approximately $25 million. Following its sale, the rig will be renamed and depart the Gulf of Mexico.

The Rowan-Texas is one of the Company’s first jack-up rigs, having been delivered in 1973. The rig is one of the oldest LeTourneau units still performing as originally designed - drilling wells to depths of up to 20,000 feet. For most of its 32-year history, the Rowan-Texas has operated on the Outer Continental Shelf in the shallow waters of the Gulf of Mexico.

Rowan Companies, Inc. is a major provider of international and domestic contract drilling services. The Company also operates a mini-steel mill, a manufacturing facility that produces heavy equipment for the mining and timber industries, and a drilling products division that has designed or built about one-third of all mobile offshore jack-up drilling rigs, including all 24 operated by the Company. The Company’s stock is traded on the New York Stock Exchange and the Pacific Exchange - Stock & Options. Common Stock trading symbol: RDC. For additional information, contact William C. Provine, Vice-President - Investor Relations, at 713-960-7575 or visit Rowan’s website at www.rowancompanies.com.

This report contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected financial performance of the Company that are based on current expectations and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected by the Company. Among the factors that could cause actual results to differ materially include oil and natural gas prices, the level of offshore expenditures by energy companies, energy demand, the general economy, including inflation, weather conditions in the Company’s principal operating areas and environmental and other laws and regulations. Other relevant factors have been disclosed in the Company’s filings with the U. S. Securities and Exchange Commission.