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Bullboard - Stock Discussion Forum Tuscany International Drilling Inc T.TID

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Tuscany International Drilling Inc > PES Renews Contracts with EC for ALL 8 RIGS in Colombia
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Post by perdikaoilgas on Mar 03, 2014 2:12pm

PES Renews Contracts with EC for ALL 8 RIGS in Colombia

and the gangsters coupled with TID mgmt drove TID to BK instead of making a better offer than PES and deploy the idle Brazilian rigs in Colombia.....Gang Squad....


SAN ANTONIO, Jan. 8, 2014 /PRNewswire/ -- Pioneer Energy Services (PES) today announced it has renewed its drilling contracts with Ecopetrol for all eight of its drilling rigs in Colombia effective January 1, 2014. Pioneer recently operated six rigs for Ecopetrol under contracts that expired on December 31, 2013. The renewed contracts have a one-year fixed term and a slight improvement in day rates as compared to the current contracts.

"We are very pleased to renew these contracts for our eight drilling rigs in Colombia with Ecopetrol," said Wm. Stacy Locke, President and Chief Executive Officer of Pioneer Energy Services. "Colombia has been a strong market for us since we began operating there in 2007, and we look forward to continuing our good working relationship with Colombia's largest oil company. We believe that our exceptional safety record and history of solid operating performance with Ecopetrol were important factors in their decision to renew contracts with Pioneer."

The new contracts require Pioneer to upgrade one of its drilling rigs from 1,000 horsepower to 1,500 horsepower and outfit another rig with an automatic catwalk at a total estimated cost of approximately $7 million. After these upgrades are complete, all eight rigs in Colombia will be 1,500 horsepower electric rigs with walking or skidding systems, top drives and automatic catwalks.

Pioneer's six drilling rigs that are currently working for Ecopetrol will continue working uninterrupted under the renewed drilling contracts. The seventh rig is expected to begin working in late March after it completes its current contract with Ecopetrol in another region of Colombia. The eighth rig will begin working for Ecopetrol in March after the 1,500 horsepower upgrade is complete.

Comment by dogtoobad on Mar 03, 2014 6:10pm
I don't understand. Wasn't it that TID couldn't collect payment from Ecopetrol? Shouldn't PES be concerned entering such a large contract w Ecopetrol, or was it a lack of performance issue from TID's part that resulted in payment default? As quoted from the news release.... "Colombia has been a strong market for us since we began operating there in 2007, and we look ...more  
Comment by perdikaoilgas on Mar 04, 2014 2:41am
No it was not Ecopetrol. TID had problem with Centurion in Colombia. TID did not have a direct contract with EC. In fact, EC intervened to help TID, giving TID the money that Centurion did not give. The thing is that Colombia remains a very strong market and TID could reduce its operating margin and get the job frrom PES for its idle Brazilian rigs. Instead of a typical 30% gross profit ...more  
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