NSE new standard energy limited

why doesn't nse buy its own rig?

  1. 1,491 Posts.
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    NSE is exploring in a remote area. The cost to mobilize and demobilize a rig to these locations is not cheap. If some event requires a three month downtime for analysis, further seismic, or whatever, we risk the Driller taking the rig to the next job unless we pay for idle time. Given the scope of NSE's drilling area, and NSE's ambitions, is it reasonable to propose that maybe NSE should go purchase a rig on the secondary market?

    Hire a few first-class drill teams from Eagleford Shale area in the USA (which is said to be similar to Canning shales). Alternate your teams four days on and four days off, working 10-to-12 hour days. That way one of the two teams is always working, and you amplify your drilling efficiency.

    We would gain from this proposal:

    1) Greater flexibility on scheduling and use of the rig.

    2) Higher quality personnel doing the drill planning and execution.

    3) Ability to work longer shifts by alternating teams.

    4) We would instantly turn a negative event into a positive one, showing the market that we are going to take control of our project and move it towards completion in a decisive way.

    Once we get out of exploration and into production, the rig could then be sold to a driller and leased back for production.

    We have almost $60M in the bank. Isn't it realistic to make this investment and start controlling our own destiny, on our terms, our schedule, our management?
 
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