Those who may be looking into oil drilling stocks might have noticed that the Borr Drilling Limited (NYSE:BORR) stock emerged as one of the notable gainers yesterday. Although the gains in the stock were only 3% yesterday, it is necessary to note that the rally came about after the company made a key announcement about its operations.
On Wednesday the company announced that it got the coveted Letter of Award or LOA with regards to the premium jack up drilling rig known as Gunlod. The LOW was secured by Borr Drilling from another operator but the identity of the operators was not disclosed.
The work on the right is expected to commence at some point in the fourth quarter of the year. The fact that the company got the LOA is a major deal considering the fact that it is going to be turned into a contract later on. The contract is going to allow for the rig to be contracted to the company through the monsoon season in the South East Asian region and later on into the first quarter of 2022. The first quarter of the year is expected to be the time when Borr is going to be able to employ more people for the rig.