Tuscany International Drilling Inc T.TID

RESPONSE from the CEO

[veronikagermany]

From:
To: Walter Dawson <[e-mail]>
Sent: Monday, May 6, 2013 8:31 PM
Subject: Q1 2013 report: 2013 Capex and Brazil

Mr. Dawson,

Could you answer my questions below please?

1) Now that all the refurbishments have finished, what is the estimated planned Capex in 2013? Will the CapEx for 2013 be significantly reduced in comparison to 2012? I assume that the Capex for 2013 will be very low and will be directed on maintenance purposes, correct?

Capex for 2013 is only $17mm for maintenance.

2) What is your outlook about Tuscany, and what is Tuscany's advantage in comparison to its peers in North America ?

The North American market is very unpredictable, competitive & seasonal, the reason we operate in other jurisdictions where we believe it’s a leveler playing field. Year around work in most cases!

We feel confident our 2012 surprises are behind us and are diligently working to prevent future surprises. We will win!

3) You said in Q4 2012 : "Management has decided that Rigs 121, 124 and 129 in Brazil and Rig 103 in Colombia no longer constitute any value to the Company and therefore an impairment charge of $24.8MM has been taken against the net book value of these rigs". Will Tuscany save money by taking the spare parts to repair its other rigs?

A decision has been made that these rigs do not deserve repair as the cost comes near (2/3) a new replacement rig. In today’s market they will be used for repairs on other rigs!

Thank you for your interest. Walter Dawson President & CEO

Sent from my iPhone