HOUSTON, July 16 -- Pioneer Drilling Co., San Antonio, has agreed to purchase an Oilwell 840E, 1,500 hp diesel electric rig from Drilling Structures International Inc. for $5.5 million.
The rig has a multiwell commitment beginning in September.
The rig, rated to 18,000 ft, will be comprised primarily of new equipment with some refurbished components. The mast and substructure are a new DSI-Pioneer design developed to handle a 750,000 lb hook load capacity. Pioneer will provide drill pipe, drill collars, blowout preventers, and handling tools.
Pioneer also announced the funding of an additional $10 million by Wedge Energy Services LLC, of which amount Pioneer will use $3 million to purchase drilling equipment and $7 million to pay down bank debt.