Three types of contracts Day Rates, footage and turn key. Day rates generally used in wildcat wells. If GDN can recover costs due to negligence of contractor, if it was negligence, then the contract would have to allow GDN to do that. If it force majeure (is a common clause in contracts which essentially frees one or both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as war, strike, riot, crime, act of God (e.g., flood, earthquake, volcano), prevents one or both parties from fulfilling their obligations under the contract. However, Force Majeure is not intended to excuse negligence or other malfeasance of a party, as where non-performance is caused by the usual and natural consequences of external forces (e.g., predicted rain stops an outdoor event), or where the intervening circumstances are specifically contemplated. Hope GDN have good lawyers Following link highlights the pit falls in drilling contracts. http://www.liskow.com/publicationdetails.aspx?id=18
GDN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
