Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (60777)	2/23/2000 1:35:00 PM
From: SargeK	Read Replies (1) \| Respond to of 95453

Slider: "During the call (PDE conference), it came out that two drillships under construction by FGH have had construction stopped." Where is the news????????????????????????????????????? FGH announced these developments on Jan 12th......... "The Company has also notified Petrodrill that, as a result of ongoing delay, deficiencies and other material defects in work by engineering subcontractors chosen by Petrodrill, FGH is entitled to extensions of the contractual delivery dates. The Company believes that the delays by these subcontractors constitute permissible delay under the contracts. Petrodrill has consistently refused to grant extensions in the delivery dates. These factors are causing, and are expected to continue to cause, the Company to incur significant additional costs in excess of the Company's original anticipated costs. The Company has responded by deferring additional fabrication efforts on these projects, and is proceeding with detailed engineering only in order to re-establish proper sequencing. Without the requested time extensions, the Company has notified Petrodrill that the existing contract delivery dates cannot be met. In addition, the Company has informed Petrodrill that it is entitled to compensation for additional costs and delay damages. Any costs incurred by the Company in excess of the original contract price on the Petrodrill contracts will not materially affect the Company's income statement because such amounts will be reflected in the purchase accounting treatment of the acquisition by Friede Goldman of Halter Marine Group, Inc. Under such accounting treatment, any such excess amount will have the impact of increasing goodwill, which will be amortized over a 25-year period. biz.yahoo.com Slider, what part of this statement is beyond your capacity to understand? "The Company has responded by deferring additional fabrication efforts on these projects, and is proceeding with detailed engineering only in order to re-establish proper sequencing." BACKGROUND: Amethyst Financial Company Limited is the successor to Petrodrill Offshore Inc which was set up to build and contract to Petrobras the then six Amethyst newbuild rigs. Amethyst Financial is incorporated in the British Virgin Islands and is owned 61.7 per cent by Maritima Petroleo e Engenharia Ltda, 26.4 per cent by Pride International and 11.9 per cent by investment funds managed by First Reserve Corporation. After Petrodrill?s cancelled 1998 bond offering, Amethyst re-capitalised with financing from Mitsubishi, MARAD and First Reserve as well as with additional cash from Pride and Maritima. MARAD financing is $150 million on each of the Amethyst 4 and Amethyst 5 (4th generation semi?s) (being constructed by FGH). (Note: The Company has stated that funds have been received to cover construction costs, so far.) O/T: Slider, do you have nothing better to do than resurrect 'Old' news in your futile, simplistic attempts to influence FGH stock price????????????? You need serious counseling little cretin! SargeK