Robert L. Parker Jr

1
IPAA2005 Oil Gas Investment SymposiumApril
18, 2005

• Robert L. Parker Jr President CEO
• David C. Mannon Sr. VP COO

2
Forward Looking Statements

• The following presentation contains certain
  statements that may be deemed to be
  forward-looking statements within the meaning
  of the Securities Acts. All statements, other
  than statements of historical facts, that address
  activities, events or developments that the
  Company expects, projects, believes or
  anticipates will or may occur in the future, the
  outlook for rig utilization and dayrates, general
  industry conditions including bidding activity,
  future operating results of the Companys rigs
  and rental tool operations, capital expenditures,
  asset sales, expansion and growth opportunities,
  financing activities, debt repayment and other
  such matters, are forward-looking statements.
  Although the Company believes that its
  expectations stated in this presentation are
  based on reasonable assumptions, actual results
  may differ materially from those expressed or
  implied in the forward-looking statements. For a
  more detailed discussion of risk factors, please
  refer to the Companys reports filed with the
  SEC, and in particular, the report on Form 10-K
  for the year ended December 31, 2004. Each
  forward-looking statement speaks only as of the
  date of this presentation, and the Company
  undertakes no obligation to publicly update or
  revise any forward-looking statement.

3
Investment Highlights

• Geographic and asset diversification
• Significant presence in core international
  markets
• High margin rental tool business
• Outstanding safety record
• New COO added to management team
• Favorable industry outlook

4
Parker Drilling Overview

• Leading worldwide provider of contract drilling
  and related services
• Among the most geographically diverse drilling
  contractors in the world operated in 51
  countries and U.S. since inception in 1934
• Reputation for operational expertise and
  experience in drilling in unique and challenging
  environments
• Core operating areas include
• International land drilling focused in CIS, Asia
  Pacific and Mexico regions
• International barge drilling focused in Caspian
  Sea, Mexico and Nigeria transition zones
• U.S. barge drilling in GOM
• Quail Tools provides premium rental tools for
  land and offshore drilling and workover
  activities
• High margin business serving major and
  independent producers in the GOM, South Texas,
  West Texas and Rocky Mtn. Regions

5
Business Strategies

• Today
• Reduce debt an additional 65MM to achieve goal
  of 200MM debt reduction
• Seek to increase utilization and dayrates
• Manage costs / minimize capital expenditures
• Tomorrow
• Pursue strategic growth opportunities

6
Recent Developments

• January 2005 Sold jackup rig 25 for 21.5
  million
• Proceeds used to call 25 million of 10.125
  effective 2/7/05
• December 2004 David C. Mannon appointed Chief
  Operating Officer
• September 2004 Issued 150 million Floater
  Notes
• Proceeds used to pay off 70 million Term Loan
  and repurchase 80 million of 10.125 Notes

7
Significantly Reduce Debt

• Goal total debt reduction of 200 million from
  12/31/02 balance
• Asset sales, cash on hand, operating cash flows
• Debt reduction of approximately 135 million
  completed

8
Utilization Trend
Note Adjusted for new Marketable Rig Count
9
EBITDA Multiples
As of April 11, 2005
EBITDA multiples are used to quantify the
premium value placed on a companys stock.
10
Company Focus

• Quality Management Systems
• Processes
• Internal Controls
• Safety - for our people and the environment
• Downtime reduce through preventative
  maintenance program and fleet standardization
• Utilization increase through rationalization of
  our assets

11
Geographic and Asset Diversification
Russia
Kazakhstan
Sakhalin Island
Quail Tools
Gulf of Mexico
Bangladesh
China
Mexico
Kuwait
Papua New
Guinea
Colombia
Nigeria
Indonesia
Peru
Chad
New Zealand
Land Barge Project
Management Labor Contract
12
Revenue and EBITDA Sources
Revenues 2004
EBITDA 2004
Discontinued Ops 6
Discontinued Ops 8
Latin Am. 2
US Offshore 22
US Offshore 26
Asia Pacific 11
Latin Am. 9
Asia Pacific 11
Quail 16
CIS 30
Quail 29
Intl Offshore 8
CIS 26
Intl Offshore (4)
13
Outlook

• Debt reduction process is ongoing
• Remain committed to reducing debt by 200 million
• GOM market expected to improve
• Slight increases in dayrates and utilization
  expected for 2005
• International markets expected to continue to
  improve
• CIS experiencing increased activity Parkers
  presence growing
• Asia-Pacific activity improving in selected
  markets
• 8 Rigs contracted in Mexico for long-term work
• Opportunities in North Africa and Middle East
• Outlook for Quail Tools is positive
• Continued improvement in GOM rental activity
• Rocky Mountain location continues to grow

14
Increase Utilization

• Utilization rates increased in 2004 and are
  expected to improve from current levels during
  2005
• GOM barges currently operating at 74 utilization
  
• Barge rig 72 has been relocated from Nigeria to
  GOM
• Contract in Mexico significantly increased
  utilization of international land rig fleet.
  Full impact in 2005.
• International barge rig utilization has increased
  recently
• Barge rig 257 in the Caspian Sea
• Barge rigs 75 and 73 in Nigeria
• 5-Year Strategic Growth Plan

15
Status of GOM Business
Rig Type Utilization Current
4Q04 3Q04
Deep Barges 9/9 25,800 22,700 20,900
Interm. Barges 3/4 19,800 17,700 16,100
Workover Barges 2/6 12,700 11,800 12,300

14/19 74 Utilization
16
High Margin Rental Tool Business

• Quail Tools provides premium rental tools for
  deep water and land drilling operations
• Consistent high margin business even during down
  cycles
• Significant contributor to Parker Drillings cash
  flow
• Four locations Louisiana, South Texas, West
  Texas and Wyoming also services Barnett Shale
  in North Texas
• Tools rented Internationally Mexico Sakhalin
  Island

17
Quail Tools
18
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19
Outstanding Safety Record
Total Recordable Incidence Rate (1)
(1) TRIR Recordable Incidents/100 Workers per
Year
20
Near-Term Focus

• Continue to manage costs
• Minimize capital expenditures
• Will be approximately 60 million in 2005
• Limit to maintenance and high return projects
• Active preventive maintenance program
• Continue to focus on Balance Sheet improvement
• Begin to pursue prudent growth plan

21
Favorable Industry Outlook

• The strength of oil and gas prices resulted in
  improvements to dayrates and utilizations in most
  of the Companys drilling markets in 2004
• During 2003 E P companies addressed a number of
  issues including debt reduction and lack of
  acceptable well prospects
• Continued strength in commodity prices should
  support improving worldwide rig count.
• E P expenditures expected to increase in near
  future(1)
• International E P spending growth
• 2005 estimate of 9 vs. 2004 actual of 11
• Domestic E P spending growth
• 2005 estimate of 14 vs. 2004 actual of 16

(1) Based on industry research