look out - its going up, page-4

Lara
No doubt they are reliant on Peabody, but at least we know they have been contracting to them since the IPO and two years is quite good for a drilling contract.

In terms of there being potential for more write downs, I beg to differ. Their remaining eleven surface rigs are written down to $9.3 million and I can't see any goodwill in the results. So that is an average $845 000 for each rig and these are assets that should each be able to generate about $1.8 to $2 million per year. Providing they are not on their last legs, I can't see how they warrant further write downs. As a yardstick, I know that last year Swick sold their surface drilling division which comprised of about 8 or 9 surface rigs plus support gear for about $18 million.

On another note, why would T Henderson buy $680 worth of shares when he already has 26 million shares? It is a meaningless amount- unless he is signalling to someone that directors are prepared to step up to support the sp? Having watched the trading pattern for a while now, it does seem a bit like someone wants to cap the sp..

I'd like to buy some more myself, but don't have the spare funds atm.