There isn't going to be any "downtime" between contracts...That was addressed by management at the last report and conference call. Premier has an option on the rig from July until November.
Premier will hand off WilPhoenix to Apache when it is finished with the rig at some point during the 5 month option period in direct continuation..there will be no downtime.
Rates for the rig go to $422,500 per day for the time it is used by Premier (versus the $322,000 prior rate) during the 5 month option period.
As soon as Apache takes the rig the rate will be $387,500 (till end of 2017, but with options after that).
The rig will be in the yard for upgrade and new blowout preventer installation Feb-March 2016.
So, there should be no temporary lowering of dividend.
That's the conclusion I came to, although I briefly got scared out by the discussion here, I don't want to get caught losing capital if they drop the distribution. Anyway, back in and up a little, so no damage done.
Very well said. I listened to the conference call and this was NOT an issue at all. i don't mind the bashers pushing the stock down now and then so I can pick up more shares at lower costs. The whole time the bashers spread their bad information I knew the truth was just what you explained. Thanks.
Not bashing (I am long the stock). Not bad information. On the last call what mgmt. really said is that they were looking at all options for the rig from mid-July to end of October and expected they could make the transition (period) "seamless". They did not say it was definitely contracted mid-July to end of October. All the industry press and North Sea rig status reports still have that period as an option period for WilPhoenix, not an under-contract period. Maybe the odds are 70%, 80% or even 99% that Premier ultimately exercises the option and leases the rig for mid-July to end of October. Until I see a status report that says "Under Contract" I will assume nothing. Look up the word option in Webster's dictionary. Management was very careful not to say the rig had been contracted on the CC. They can expect anything they want. So can you. But before throwing around words like basher or bad information check your sources. Go to Rigzone of KLenergy. The rig is under option not contracted. I hope it gets contracted. I learned a long time ago rose-colored glasses and hearing what one wants to hear can result in some big investment losses. BTW, I am wicked long the stock as I said. Willing to add more on any dip, and maybe even if it doesn't. Attention to detail has made me a lot of money through the years.