Re: Rig market
X will like to see this from the CIE earnings call. The rig market is so tight that operators are having problems getting slots.
seekingalpha.com 
Joseph H. Bryant
This is Joe. First of all, on the Ocean Confidence, the situation there was, as you all know, we had the rig for 4 slots. It became apparent, however, that the rig was essentially double-booked. And the operator that also had the Ocean Confidence was facing a lease expiration up the coast in West Africa. Therefore, the dilemma arose: do we give the rig up or do they lose their lease? And what we did was we negotiated what we think is a favorable rate on an incremental slot for the Ocean Confidence in exchange for turning the rig loose for a few months. We, of course, did not want to turn the rig loose, we've got a lot of prospects to drill. But we think, overall, it was a win-win solution and one that is best for Cobalt to get that extra slot with the Ocean Confidence. Regarding a long-term rig solution for Angola, again, you're all aware of the numerous slots that we need over the next several years, both for exploration and development. We're currently out right now. Those bids are going to come back here in probably sometime in May. We'll discuss them with our partners and the concessionaire. We're Looking for a multiyear contract from those rigs. Rig market is getting pretty tight, and I think getting the rig in the first half of 2013 is less and less likely based on how tight the market is getting. Therefore, again, that's why it makes sense to do the deal with the Ocean Confidence to get it, tie it up, until we have much higher degree of confidence that when it sales away, we can bring in the new long-term rig for Angola. So hopefully on the next -- on the second quarter call, I'll tell you what we did on that. But that's as much info as I have today that I can share with you. Did that answer your questions? |
