The first quarter of 2010 has seen a positive start by GDI in line with the excellent results and achievements obtained in 2009. However, our safety records have suffered in the first two months of 2010. In March 2010, we have managed a stronger and safer operation with no recordable incidents being registered. I strongly believe that with hard work and determination, GDI can continue to improve on the results obtained so far. 

While 2009 proved to be the most successful year in GDI’s history, significant challenges still remain. The daily rig rates are still lower than those the industry have enjoyed in previous years, however, we have managed to secure contracts for four of our offshore rigs and in the process of finalizing a contract for the fifth rig. We have budgeted our Operating and Capital expenditures accordingly. Focus will therefore remain on cost optimization opportunities in line with the market changes and trends. 

Ensuring 100% utilization of our rigs in this highly competitive market, identifying and retaining the best talented workforce and business development and diversification continues to be the highest priorities and key to our growth strategy.  Our reputation within the local market has improved in comparison to recent years and with hard work and determination, our future is extremely bright. 

I look forward to an exciting and challenging 2010. As always, GDI will remain committed to being an advocate for excellence, aspiring to be a World Class Drilling Services Provider.

Sincerely yours,

Ibrahim J. Al-Othman
Chief Executive Officer