I have held VTG for a while now, gradually adding to my position on drops. My rationale for the initial purchase is that I was looking to invest in a small cap stock (growth potential) with exposure in the ultra deep water exploration and drilling business. I looked at a number of companies and ultimately chose VTG for my initial foray in this area. My rational is as follows: 1) the company's share price has dropped significantly in the past several years, while its financial performance has been improving. You have to dig into the numbers to see this, but I believe it to be true as they have been converting debt into revenue-generating assets of very high quality. 2) I have watched as BP divests itself of some shallow water and mid-depth assets while expanding and holding its ultra deep water leases. VTG stands to benefit from the increased demand in the ultra deep. I believe the recent extension of contract for one of their rigs bears this out, as does their growing contract backlog, currently at 2.7B, and the increasing dayrates for their rigs. Their utilization rates are very impressive, possibly the best in the business. They are very well diversified, working under contracts with several of the major players in the industry. These relationships appear solid as contracts continue to be renewed and extended. 3) They are a very small company with significant assets and, despite the recent appreciation in share price to around $1.85, they are still trading for far less than they are worth. In my view, this makes them both an attractive takover target and a company with significant potential for appreciation. 4) They have leveraged the capacity they have built or acquired in overseeing the construction of their own drill ships to provide such services for 3rd parties under contract. This allows them to maintain in-house capacity without it being a drain on resources, and in fact to use it to make money.