TODCO Announces Reactivation of a Cold-Stacked Drilling Rig

HOUSTON, July 6  /PRNewswire-FirstCall/ -- TODCO (NYSE:THE) today announced the reactivation of a cold-stacked drilling rig. THE 153, a 150 foot mat cantilever jackup rig, will be reactivated for an estimated cost of approximately $20 million of which approximately 20% will be capitalized with the remainder being expensed over the reactivation period. The rig is expected to be operational by late fourth quarter of 2006.

Jan Rask, President and Chief Executive Officer of TODCO, said, "While the reactivation of this rig is a departure from our policy of only reactivating our cold-stacked rigs against long-term contracts, we are confident that we will be able to obtain a drilling contract for this rig prior to completion of its reactivation due to the ten jackup rigs scheduled to leave the U.S. Gulf of Mexico later this year."

Statements regarding the reactivation of our THE 153 as well as any other statements that are not historical facts in this release are forward-looking statements within the meaning of U.S. securities laws and involve certain risks, uncertainties and assumptions.  These include, but are not limited to, general market conditions including supply and demand for jackup rigs in the U.S. Gulf of Mexico, estimated reactivation costs and the portions to be capitalized and expensed, estimated reactivation times and our ability to obtain drilling contracts for our reactivated rigs and other factors detailed in TODCO's 2005 Form 10-K filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.

TODCO is a leading provider of contract oil and gas drilling services with the largest rig fleet in the shallow water of the U.S. Gulf of Mexico and along the U.S. Gulf Coast. TODCO's common stock is traded on the New York Stock Exchange under the symbol "THE".  For more information about TODCO please visit our website at http://www.theoffshoredrillingcompany.com/ . 

DATASOURCE: TODCO



CONTACT:  Dale Wilhelm, Vice President & CFO of TODCO, [phone]



Web site:  http://www.theoffshoredrillingcompany.com/ 

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