Question-and-Answer Session
[Operator Instructions]. We'll take our first question from, Arun Jayaram with Credit Suisse.
Arun Jayaram - Credit Suisse
Good morning guys.
Daniel F. McNease - Chairman, President and Chief Executive Officer
Good morning.
Arun Jayaram - Credit Suisse
Danny, I was wondering if you could elaborate on the process you are undergoing at some monetize return, and just maybe comment on some of the interest you are seeing in parties and potential outcomes?
Daniel F. McNease - Chairman, President and Chief Executive Officer
Well I mean I can't really go into details but we are... as everyone knows, we are up for bids right now, and from all different type of companies all around the world, and that process has taken longer due to amount of tenders that we've had. So, we are going through that process, letting people look in our data rooms and to make the second rounds of bids, but there is a lot of interest about the organization and the company.
Arun Jayaram - Credit Suisse
Okay. I don't want to put the cart before horse here, but lets just assume for agreement sake that you could get 1.2 billion to 1.5 billion for Laterno, can you help us understand what the potential tax implications would be if you received amount in that... at that level?
Daniel F. McNease - Chairman, President and Chief Executive Officer
Well Arun, we're looking at alternatives that would be a tax efficient, if you will. But it's going to be a challenge to pull that off. Let's just say that our tax basis in LTI less than that range you suggested, so there would be a tax cost unless we are able to find an alternative.
Arun Jayaram - Credit Suisse
Okay, my understanding is that tax basis is about $400 million to $500 million. Is that accurate?
Daniel F. McNease - Chairman, President and Chief Executive Officer
I think that's fair, yeah.
Arun Jayaram - Credit Suisse
Okay. Final questions on the land rig side, you talked about maybe 6 new commitments. Can you help us understand, what the pricing level look like, I think you did 22/6 in terms of an average there in the quarter?
Daniel F. McNease - Chairman, President and Chief Executive Officer
Yeah, the pricing level is anywhere from 25,000 to 27,000 for a new two and three year contracts.
Arun Jayaram - Credit Suisse
- To read the full transcript on Seeking Alpha, click here »
