Quarterly report pursuant to Section 13 or 15(d)

Other

v3.5.0.2
Other
6 Months Ended
Jun. 30, 2016
Other [Abstract]  
Other

Note 11 - Other



Operating leases



As of June 30, 2016, the Company had contracts for two horizontal drilling rigs (the “Cactus 1 Rig” and “Cactus 2 Rig”). The contract terms of the Cactus 1 Rig and Cactus 2 Rig will end in July 2018 and August 2018, respectively. The rig lease agreements include early termination provisions that obligate the Company to pay reduced minimum rentals for the remaining term of the agreement. These payments would be reduced assuming the lessor is able to re-charter the rig and staffing personnel to another lessee. In January 2016, the Company decided to place its Cactus 1 Rig on standby and is required to pay a “standby” day rate of $15,000 per day, pursuant to the terms of the agreement, allowing the Company to retain the option to return the rig to service under the contract terms.