Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2017
Other [Abstract]  

Note 10 - Other

Operating leases

As of March 31, 2017, the Company had contracts for three horizontal drilling rigs (the “Cactus 1 Rig”, “Cactus 2 Rig” and “Cactus 3 Rig”). The contract terms, as amended through December 31, 2016, of the Cactus 1 Rig and Cactus 2 Rig will end in July 2018 and August 2018, respectively. The contract terms of the Cactus 3 Rig, that commenced drilling in mid-January 2017, will end in July 2017. 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.

Subsequent event

In April 2017 the Company entered into a contract for a fourth horizontal drilling rig. The contract term will begin July 2017 through July 2019 with a day rate of $18,000 per day.