Posted On: 10/29/2013 11:03:06 AM
Post# of 39368
Re: 2020Investor #21224
You can look at the Q1 2013 financials and you can see that TECO made $13,600 on drilling contracts: http://filings.irdirect.net/data/1075773/0001...co_10q.pdf . This was the announced contract in Q1 2013. So yes, TECO got a contract and fulfilled it and revenue was recorded.
As for the other statement, its actually fairly easy to understand. If the Company were to keep Treaty Energy Drilling internal, it would require large and consistent cash flows to maintain and sustain a large drilling operation our financials don't show that (we're working on it, just drill baby, drill!) However, the Company can provide drilling services and completely offset the cost of operations by making our operating costs nil while simultaneously bringing in additional revenue to push us to cash flow positive to maintain a large drilling operation.
If you believe that more revenue and almost no expenses isn't more cost effective, then that is functionally impossible. There are some costs obviously, but they're covered through the contract.
Plus, the Company would rather keep the drilling assets as revenue generators and for future use. The Company has always maintained that while the division is currently separate, they could very well be used to drill our own wells later on.
As for the other statement, its actually fairly easy to understand. If the Company were to keep Treaty Energy Drilling internal, it would require large and consistent cash flows to maintain and sustain a large drilling operation our financials don't show that (we're working on it, just drill baby, drill!) However, the Company can provide drilling services and completely offset the cost of operations by making our operating costs nil while simultaneously bringing in additional revenue to push us to cash flow positive to maintain a large drilling operation.
If you believe that more revenue and almost no expenses isn't more cost effective, then that is functionally impossible. There are some costs obviously, but they're covered through the contract.
Plus, the Company would rather keep the drilling assets as revenue generators and for future use. The Company has always maintained that while the division is currently separate, they could very well be used to drill our own wells later on.
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