Estrella International mobilizes rig to Central Chile geothermal project

Estrella drilling rig (source: Estrella International)
Alexander Richter 23 Feb 2011

Estrella International Energy services finished drilling contract with Geothermia del Norte in Chile ahead of schedule and mobilized rig to central Chile to start operation on a new geothermal contract.

In a release with an operational update, Estrella International Energy Services announces that it experienced experienced reduced Q4 revenues in Chile as a result of the over- performance of geothermal Rig 1201.

Rig 1201 finished its existing contract for Geothermia del Norte in October 2011, several months ahead of schedule. The rig was then placed under retainer with a new customer earning a reduced day-rate for the fourth quarter. This has negatively impacted the revenue stream of the rig for the fourth quarter, but the positive performance has ensured that the rig will stay in the key geothermal market and remain on contract.

The crew has been temporarily redeployed or released during the standby period. The rig is currently being mobilized to Calama, and is expected to continue mobilization to central Chile to start operations on a new geothermal contract. During the deployment, as of January 15th, 2011, the Company has negotiated an improved retainer rate for the rig during the mobilization period.

Source: Company release via Benzinga