Malmanu, the drillers in our pool says its hard to put a price...

Malmanu, the drillers in our pool says its hard to put a price not seeing the condition of the equipment. So no comment there.

For one example MSV bought Nitro Drilling of the Administrator for $16.1m. That's for everything including 25 rigs, 20 of those being Tier 1. That's just a mere ~$650k per rig. Remember all the associated equipment, of pipe, trucks, utes, pumps, tooling, workshop/yard etc etc etc. In this MSV jumped to soon and have not been able to put this equipment to enough use, themselves in struggle street. Should have waited. Remember back in 2011 when BLY retired ~100 rigs with an average age of 26 years old, to be replaced by ~120 new ones. Each unit costing in excess of ~$2m to go into the field.

Individual rigs at auctions are going for as low as ~10% of replacement value to as high as ~20%. But condition and configuration is key.

For instance, one of the guys looked at an old UDR650 for sale at auction. To buy a new DE810 (new name) in the same configuration (with truck underneath) would cost ~$710k (plus). However this being and older rig he was looking at it as a parts rig.....Head $30k, Pump $15k, Engine $8k etc etc. He said it was probably worth the $80k but thought it would get passed in. Rig was sold for $11,000 and was on a job in Broken Hill within a month.

BLY's Products Division will be hating this idea, if true. Thank god for underground drilling.