Question-and-Answer Session
Operator
Thank you, sir. We will now begin the question-and-answer session. (Operator Instructions). Our first question comes from the line of Jeff Tillery with Tudor, Pickering & Holt. Please go ahead.
Jeff Tillery - Tudor, Pickering & Holt
Hi, good morning Chris.
Christopher Strong
Good morning.
Jeff Tillery - Tudor, Pickering & Holt
Your comment around Q2 exiting better than its starting. Is that principally around Appalachia or is that -- are you seeing inquiries on the rigs of rollout contracts as much you think utilization may hold up a little bit better than you feared?
Christopher Strong
Now, that's really principally Appalachian, Jeff. We're still in a market where there's scarcely any bid. There really doesn't seem to be a number at which rigs are going out in the Barnett. I think the Barnett is probably still in an environment where it's shedding rigs.
Fayetteville, I think we've got some opportunities there to do some smaller work. And I'd say maybe further out there maybe some opportunities out in the Permian but that may even be on a footage basis at this point in the proceedings given that oil prices really haven't rebounded. So principally Appalachian.
Jeff Tillery - Tudor, Pickering & Holt
And then you discussions with customers on existing contracts, I would assume that those discussions are focused on the first rigs, the roll-off contracts and trying to secure term to keep those rigs from going idle. I guess one is that correct and two, could you provide us a little color for how much additional term you think you'll be able to secure on some of these guidance?
Christopher Strong
Well, it's not completely correct. Actually we have some discussions going on with rigs that are turned up fairly far out where customers are saying what about yet another year on the tail-end of that contract and how many thousands of dollars a day would you come down if we gave you a third year, so it's like that.
Jeff Tillery - Tudor, Pickering & Holt
Okay.
Christopher Strong
So what we're seeing some of that. None of it's really mature enough for me to -- to have announced anything concrete but there are several discussions like that as I said earlier. I think we may see some rig recovery possibly at the end of the year, possibly early next year but at this point I think 2010 maybe a recovery year in terms of utilization but it could take us a quite a ways through that year before we get to the utilization level where we see recovery in pricing.
- To read the full transcript on Seeking Alpha, click here »
