LaraNo doubt they are reliant on Peabody, but at least we know...

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.