if they had borrowed heaps to buy hofco, then they would be in a...

if they had borrowed heaps to buy hofco, then they would be in a world of hurt . the fact that this was purchased with equity raising means that they at least have some balance sheet flexability. drilling businesses always have feasts and famines such is the nature of the beast.

provided they have taken the appropriate action with the camp businesses ( ie effectively shut it down ) then they will be ok.

present share price is on balance looks like it has way overhot on the low side, dumped by fundies that nver understood the business to begin with.