I am definitely a "hair on fire" investor with my trading account - money I can live without (don't want to but could :) and right now the oil/gas/drillers are the wild west. I own Miller preferreds - which right before they suspended the divi the president said were his main focus on paying, GRH preferreds which were suspended without comment 2 months ago as well as ARP, BBEP, and PGN. PGN is the strange one as they did away with divi a long time ago to conserve money, have had a huge 1st and 2nd quarter cash flow and profit-wise and trade for .70. BBEP cut twice. Really not sure the reasoning behind keeping the payout where it is for ARP (over 50%) at one time. I would be quite happy with 5 cents a month if it pushed our debt problems another 18 months.
Thank you very much for the quick and thorough answer - yes, was confused on the type of Prospector rig. Figured they had to keep the existing fees for the contracts and hopefully in the next year+ can add time to them.
Slow goer here - so PGN (Prospector sub) sells 2 deep water rigs for 292 million net. They then pay SinoEnergy $71,000 a day til next Nov (~$34 million) and $42,000 a day for the 43 months after that (~$50 million) for a barebones charter (no crew). Won't go into the math for the other rig ( which will be more expensive). Is that correct? Does PGN keep the money from the contracts the rigs are already under? What if the rigs go under a new contract? I would think they would have to the current fees to be economically feasible. Who is picking up the tab for the crew?