UPDATE 1-Higher rig contracts boost Precision Drilling's revenue

Thu Jul 24, 2014 7:33am EDT
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* Raises 2014 capex by 12 pct to C$934 mln

* Average rig count in Canada up by 13 to 53

* Average rig count in U.S. up by 13 to 93 (Adds details from statement, background)

July 24 (Reuters) - Precision Drilling Corp , Canada's largest oil and gas drilling contractor, reported a 25 percent jump in quarterly revenue as its rigs under contract were at their highest level since 2006.

The company also raised its 2014 capital budget by 12 percent to C$934 million ($871 million), citing strong demand for its new rigs.

Precision Drilling, which competes with Ensign Energy Services Inc, Trinidad Drilling Ltd and Savanna Energy Services Corp, also provides well completion and production services.

Precision Drilling said it is expanding its rig-building capacity and expects to deliver three new rigs per month starting October, and four rigs per month starting 2015, if customer demand continued at the current pace.

The average rig count in both Canada and U.S rose by 13 to 53 rigs and 93 rigs, respectively.

Precision Drilling, citing industry sources, said U.S. active land drilling rig count was up about 6 percent from last year. Canadian active land drilling rig count was up about 18 percent.   Continued...