Operations - Estrella International Energy Services Ltd.
Operations - Estrella International Energy Services Ltd.
Operations - Estrella International Energy Services Ltd.
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Objectives<br />
Reduction in SG&A to < 11% of revenues<br />
• Rationalization and replacement of expats with locals in key management positions<br />
• Promotion from within to replace key departures<br />
• Elimination of many one time costs assocated with ineffecient capital raising<br />
• Reduced SG&A in Q1 2012 by 938k over 2011 averages<br />
Consolidation of position in Colombia –One <strong>Estrella</strong> image<br />
• Completed Zigma acquisition<br />
• Converted problematic PL acquisition into a clean asset purchase<br />
• One unified operation<br />
• Reduced admin positions by > 50%<br />
• Reduced operating bases from seven to three<br />
Utilization of rigs > 80%<br />
• Swapped rigs between Colombia –Peru onto long term contracts<br />
• Diversification of customer base in Colombia<br />
• Focus on long term contracts<br />
• Work required to secure higher percentage of long term contracts<br />
23<br />
Debt Reduction<br />
• Renegotiation of Petroland deal to reduce assumed debt from $6 million to $1.7<br />
Million<br />
• Repaid over $8 million of senior debt facility over the last six months
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