Dallas, Texas 01/16/2014 (FINANCIALSTRENDS) – Vantage Drilling Company(NYSEMKT:VTG) is going places with its latest rig- Tungsten Explorer. That is because, the rig which is currently operating at Petronas Cargali, in South Eastern high shores of Asia, is being rented at one of highest daily rentals of$750,000. The high rental costs are due to highly sophisticated array of features the rental rig has. One of the most modern rigs in terms of availability of technical features as well as the software running the whole operations, the key point is that this drillship operates in extreme or what is typically called as ‘ultra’ deep water drills. The south Korean designed and developed drill ship operates in waters as deep as 12,000 – 40,000 feet below water.
On a comparative note, Vantage Drilling Company(NYSEMKT:VTG)’s peer Pacific Drilling saw rig operating costs rise to $163,400 on a per day basis, and did not include additional costs of onshore support as well as other incidental costs of operations. The final cost for Pacific Drilling was $180,000 per day. Insiders consider this to be the standard drilling costs for most other companies.
Therefore, the current rental rates Vantage charges is definitely profitable, post taxes and other incidental expenses as well. Vantage Drilling Company (NYSEMKT:VTG) the US head quartered Vantage Drilling Company(NYSEMKT:VTG) has a simple yet comprehensive operational brief. The company with multi-skilled workforce engages in executing drilling on a contractual basis. Much of the projects the company offers are for international stakeholders and has work crews and logistical expertise with equipment used in this industry. Much of the work the company executes is performed on rates calculated on Day Rates. The line of clients for Vantage Drilling is essentially from the oil and natural gas wells. The drilling company has 420,749 volume $579.96 million market cap and trading history of 52 week high of $2.06 and 52 week low of $1.55. EPS is -0.83.