EGM needed, page-7

The rig contract is probably pretty standard. PRL (the operator, or client) is low on funds and the drilling contractor (rig owner) is paid a day rate for services provided. The only cost the drilling rig wears is down time. When a piece of rig equipment goes down for example the mud pumps, top drive, HPU, etc. All other costs including well related issues, weather delays, equipment arrival delays (that are ordered by PRL), etc are all worn by PRL. When kept on Standby typically the drilling contractor is paid a slightly lower day rate. Some personnel such as Rig manager, Electrician and Mechanic plus a driller are kept on site to keep things ticking over. Plus a cook / campy at the camp. Costs magically don't drop to nothing when drilling is suspended unless the fault is on on the drilling contractor.

PRL being short on ideas, plans and funds is their fault. Drilling contractor could, if they chose to, pull the pin (depending on contract) and take the rig back. I'd be weary of this if funding is delayed or an issue. Seeing as markets are picking back up for oil rig demand they could get work elsewhere.

This is the most poorly run drilling program I have ever witnessed. Management can not deliver this project to market. History repeats.