Tusany International Drilling's Q-1 Report for 2011 was released today. Here is the overview and the Outlook from the report. You can look at the financial numbers by clicking on the URL below:

Overview

During the three months ended March 31, 2011, the Company recorded a net loss of $3,820 ($0.02 per common share) compared to a net loss of $2,215 ($0.01 per common share) for the three months ended March 31, 2010. During the three months ended March 31, 2011 the Company recorded oilfield services revenue of $19,270, EBITDA(3) of $3,522 and gross margin1 from rig operations of $6,698 compared to revenue of $3,380, EBITDA of negative $81 and gross margin from rig operations of $1,472 during the three months ended March 31, 2010, and revenue of $8,653, EBITDA of negative $5,379 and gross margin from rig operations of $766 during the fourth quarter of 2010. The increases in revenue, EBITDA and gross margin for the first three months of 2011 compared to the first three months of 2010 and the fourth quarter of 2010 reflects the increase in operating activity during the first quarter of 2011 compared to the first and fourth quarters of 2010. For the three months ended March 31, 2011, the Company had 748 revenue days from rig operations compared to 256 revenue days from rig operations during the three months ended March 31, 2010, and 463 revenue days from rig operations during the fourth quarter of 2010. Gross margin for the three months ended March 31, 2011, was offset by general and administrative expenses of $4,089, net finance costs of $2,155, and depreciation of $2,200. For the three months ended March 31, 2011, the Company also recorded current income tax expense of $1,030 and other expenses, consisting of $406 of foreign exchange losses and an equity loss of $638. Compared to the three months ended March 31, 2010, general and administrative expense reflects significant additions to the Company's management teams, both in the Company's head office in Calgary, Canada, and in its operating centres in South America. For the three months ended March 31, 2010, the Company was operating with a minimum of staff and was still in a "start-up" phase with minimal operating activity.

During the three months ended March 31, 2011, Tuscany received $3,299 from financing activities, which arose from the exercise of issued warrants, and incurred $32,052 of capital expenditures. The majority of capital expenditures during the three months ended March 31, 2011 were incurred to complete the construction of the two 1,500 HP heli-portable drilling rigs for Brazil and on construction of one 2,000 HP drilling rig and one 850 HP pad drilling rig, both scheduled for deployment to Colombia.

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Outlook

During the first quarter of 2011 the Company completed the construction of the 1500/2000 HP drilling rig previously announced in January 2011. The rig has been contracted to a customer in Colombia and has been deployed from Houston. The rig has been shipped and the Company expects the rig to clear customs and be on location and drilling by early July 2011. Construction of the 850 HP pad drilling rig, also announced in January 2011, is progressing. Contract negotiations for this rig continue and this rig is expected to be deployed to Colombia during the third quarter of 2011.

During the three months ended March 31, 2011, the contracts for the rig deployed to Guyana and the rig deployed to Peru ended. The Guyana rig is being redeployed to Colombia. With the completion of the contract in Peru, the Company will redeploy the rig to Ecuador as the Company's customer in Peru is re-evaluating its drilling program in the area and as such the Company does not have additional work for the rig in Peru. With the redeployment of the rig from Peru, the Company will suspend its operations in the country until such time as additional work in the country can be contracted. The Company believes that Peru is an area of future growth opportunities and will continue to monitor activity in the area.

In April 2011, the Company completed a bought deal subscription receipt financing with gross proceeds of approximately CDN $100,000 and completed a $52,000 acquisition of a private drilling contractor located in Brazil. The remainder of the proceeds from the subscription receipt financing will be used to pursue other corporate development opportunities. With the acquisition, which includes seven drilling rigs and two work-over rigs, the Company has become a significant contractor in Brazil, owning approximately 20% of the drilling rigs available for work in the country. The acquisition was strategic for the Company as it provides critical mass and expanded infrastructure to the Company's existing operations in Brazil. Of the nine rigs acquired in the acquisition, three rigs are working on contracts which range between four and six years. Of the remaining six rigs, a contract is currently being negotiated for one rig with a new customer and one rig will be decommissioned for spare parts. The Company is evaluating the remaining rigs and expects to spend up to $10,000 refurbishing them prior to them being contracted.

Marketing and contracting efforts regarding the Company's 17 drilling and work-over rigs already deployed into South America continue. In May 2011, Tuscany made several additions and changes to strengthen its operating management team in South America. With the changes, the Company is anticipating improved rig utilization going forward.

http://www.theglobeandmail.com/globe-investor/news-sources/?date=20110606&archive=ccnm&slug=201106060702350001

Cheers; Scott