Vantage Drilling has been led since September 2006 by CEO Paul Bragg. He previously was the CEO of Pride International Inc. and served as CFO of Energy Service Co. Inc., now called ENSCO International Inc.
JEFFREY SAILE (One of the original founders of ENSCO)
INDEPENDENT DIRECTOR OF JASPER INVESTMENTS
Mr Jeffrey Saile was appointed as an Independent
Director in May 2010. He brings with him over three
decades of experience in the offshore, oil and gas
Mr Saile started his career in the offshore drilling
company SEDCO in 1974. Over 13 years at the fi rm, he
held many international postings and assignments in
the Middle East, Europe, West Africa and Singapore.
He later joined ENSCO in 1987 to become one of its
founding members. He was Senior Vice President of
Operations and had oversight responsibility for the
North and South America and Deepwater business units
before he retired in 2009.
When I went to work at Pride a half dozen of their rigs were owned by joint ventures. Pride eventually bought out these partners and now own these rigs outright. Another question is do these finance companies still want to own deepwater rigs after seeing the costs associated with the BP oil spill. Since these management contracts only earn Vantage around $5 MM each per year I doubt they are willing to take much responsibility if something bad happens. Finally I have no insite as to Jasper's motive for buying Vantage stock, but if Ashcraft has deep pockets he may want to keep buying as long as he can get the stock in the $1.30 range.
I expect a major debt refinance almost 1 year from today. That is when that 15% bullet loan is first repayable. Plus they will be in a position to take a large chunk out of the recently issued notes. Pride recently did a 5% offering. If VTG keeps up its track record of performance there should not be too much of an issue locking in significantly lower rates than we already have. Also, if Jasper is content to only be an equity holder at this point they might almost provide a great party to get financing through because of their access to Ashmore. We may see an early incarnation of this if they are willing to help with the financing of the Dragonquest. If Jasper wants to go hostile the need to before Nobu gets his convertible shares.
Also, I agree with Happyhorn that we will be owning the Seadragon Rigs. Those finance companies who own those want to earn a nice little return before dumping them. (They are a finance company and not a rig operator, its not their line of work).
A year from now VTG will be a much different company. Either no longer independent, or much larger than they are today. (Unless another cataclysmic market crash or oil disaster).
They might be picking up all of the shares that people are dumping after the offering. They got a great move out of their purchase and now looking to someone else. There has definitely not been a lack of sellers in the broader market. The float keeps shrinking though. Really wonder how this all plays out. We might get an answer before the proxy meeting to prevent the convertible bond?
I believe that the Platinum Explorer is commissioned on Sept 1, for what its worth.
Movement between companies is very common in the Drilling industry. I work at Pride and have worked with half the people at Vantage including Paul Bragg and Doug Smith etc. Most of the people I work with a Pride have also worked for one or more other drillers. That being said, these guys can see the stock price, and know the earnings power of a drillship once it gets in the water.
Way to DD that. Still makes me wonder what Jaspers motives are. Maybe Jasper hasnt even decided on their final solution? Buyout or just buying shares of an udervalued company?
It appears the bought another 2 million shares. Not sure why some other deep pockets havent jumped in to make it a little tougher for Jasper to keep getting VTG shares on the cheap.
with the manipulation, i don't think it's showing up on anyone's radar. They are (incredibly) keeping it in a very tight unimpressive range whilst MILLIONS of shares are scooped up without hardly moving the needle on the share price. A month ago, most people never heard of 3Par. LOL.