Calmena reports notification to Petrobras of termination of four single rig contracts
Tuesday, Dec 18, 2012Calmena Energy Services Inc. (TSX:CEZ) ("Calmena") announces that pursuant to the terms of its long term contracts (the "Contracts") with Petroleo Brasileiro S.A. ("Petrobras") for the provision of drilling services of four single drilling rigs in Brazil, it has delivered to Petrobras written notice of the termination of the Contracts. Calmena's notice stipulates that the Contracts will terminate 30 days from the date of the notice. The decision to terminate the Contracts was made after extended negotiations related to several operational and contractual issues, which were causing financial losses to Calmena, failed to yield a satisfactory result.
Calmena does not anticipate that the termination of the Contracts will have a negative impact on the operations of its heliportable rig, which is operating in the Amazonas state of Brazil under a separate long term contract with Petrobras.
Calmena has begun the process of winding down the current drilling operations of the single rigs in Brazil in an orderly and efficient manner and will be marketing the services of the single drilling rigs, which Calmena believes are among the fastest and most efficient of their size, in Brazil and elsewhere in Latin America.
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