Jennings Target = $1.00 ...it is dated as of August 9, 2012 www.jenningscapital.com
Highlights.......
1. Revenue per day = US$32,618
2. EBITDA of US$17.0 million
3. Tuscany has entered into negotiations with HRT for settlement; actively being marketed.
On June 23, 2012, HRT provided Tuscany with a notice of termination for Rigs 115 and 116 on the original 4-year contracts (entered into service contract October 2010 and rental agreement May 2011) citing unsatisfactory safety and performance rates. Tuscany denies these claims.
o Tuscany is entering into good faith negotiations with HRT, with the first meeting to commence on August 14, 2012.
o If no settlement is reached, Tuscany may seek to enforce its remedies related to early termination which are:
? $10 million fee per rental contract if new rental contracts are not secured within 60 days.
? Demobilization fees of $650,000 per rig.
? Demobilization, transportation and mobilization rates applicable during the required 60-day prior notice period.
o The rigs have been demobilized and are actively being marketed.
4. Signed an LOI to operate one rig in Uganda.
5. As of June 30, 2012, 2012, Tuscany had cash and cash equivalents of US$15.6 million, long-term debt of US$161.9 million (net of financing fees), and working capital of US$16.8 Million