Tuscany International Drilling Inc T.TID

TID's ACE: The CASH from HRT

[veronikagermany]

Apart from the fundamental change (the  utilization rate is currently ~83%  and  rising  from  65%   in  Q1  2013),  there  is  also  the  cash  from  HRT  case  which  is  in  the  Court. According  to  the  latest   contact   I  had   with  the  company  last  week:

 

HRT - who  walked  away from contract in Q3 '12   and  caused  TID's  price  to  drop   in  H2   2012,  is by law/contract responsible for paying  $5m per rig de-mobilizing cost... total $10m. TID  has  a  legal opinion that carries a high degree of confidence they will be awarded this amount in aribitration by year end. This  is  only  from   rig   de-mobilizing.

TID  also  expects  to  receive  more  money   from  HRT   because  HRT    cluelessly  terminated   the  two   contracts   in   Q3   2012   in  an  unilateral  way.  

TID  has  a high degree of confidence they will also  be awarded the $20m in loss contract revenue from the HRT deal in Brazil. 

In total, there is anywhere from $ 20 million to $40 million in potential cash TID will receive by the end of 2013.

[RiskyBiz39]

Notwithstanding the cash deposits held by TID from HRT on their chance of non-performoiming. I hope HRT has the money to pay the additional.  They just drilled anothe big dry hole that might be the end for them. Just hoe they got the dough. They work on the balance sheet. Get those HRT rigs sold or working ASAP.. Even if have to take a hit to sell below market. Through that money to DEBT