We are primarily engaged in contract drilling of oil and gas wells for others
and this business accounts for almost all of our operating revenues. Our contract
drilling business is composed of three reportable business segments: U.S. land
drilling, offshore drilling and international land drilling.
Our U.S. land drilling is conducted primarily in Oklahoma, California, Texas,
Wyoming, Colorado, Louisiana, Mississippi, Pennsylvania, Utah, Arkansas, New
Mexico, Alabama, Montana, North Dakota and West Virginia. Offshore drilling
operations are conducted in the Gulf of Mexico, and offshore of California,
Trinidad and Equatorial Guinea. Our international land segment operated in seven
international locations: Ecuador, Colombia, Argentina, Mexico, Tunisia, Bahrain
and Venezuela.
We are also engaged in the ownership, development and operation of commercial
real estate and research and development of rotary steerable technology. Each
of the businesses operates independently of the others through wholly-owned
subsidiaries. This operating decentralization is balanced by centralized finance
and legal organizations.
Our real estate investments located exclusively within Tulsa, Oklahoma, include
a shopping center containing approximately 441,000 leasable square feet, multi-tenant
industrial warehouse properties containing approximately 990,000 leasable square
feet and approximately 210 acres of undeveloped real estate.
Our subsidiary, TerraVici Drilling Solutions, Inc. ("TerraVici"),
is developing patented rotary steerable technology to enhance horizontal and
directional drilling operations. We acquired TerraVici to complement our existing
drilling rig technology. The process of drilling has become increasingly challenging
as preferred well types deviate from simple vertical drilling. By combining
this new technology with our existing capabilities, we expect to improve drilling
productivity and reduce total well cost to the customer.
We believe that we are one of the major land and offshore drilling contractors
in the western hemisphere. Operating principally in North and South America,
we specialize in shallow to deep drilling in oil and gas producing basins of
the United States and in drilling for oil and gas in international locations.
In the United States, we draw our customers primarily from the major oil companies
and the larger independent oil companies. In South America, our current customers
include major international oil companies.
We provide drilling rigs, equipment, personnel and camps on a contract basis.
These services are provided so that our customers may explore for and develop
oil and gas from onshore areas and from fixed platforms, tension-leg platforms
and spars in offshore areas. Each of the drilling rigs consists of engines,
drawworks, a mast, pumps, blowout preventers, a drillstring and related equipment.
The intended well depth and the drilling site conditions are the principal factors
that determine the size and type of rig most suitable for a particular drilling
job. A land drilling rig may be moved from location to location without modification
to the rig. A platform rig is specifically designed to perform drilling operations
upon a particular platform. While a platform rig may be moved from its original
platform, significant expense is incurred to modify a platform rig for operation
on each subsequent platform. In addition to traditional platform rigs, we operate
self-moving platform drilling rigs and drilling rigs to be used on tension-leg
platforms and spars. The self-moving rig is designed to be moved without the
use of expensive derrick barges. The tension-leg platforms and spars allow drilling
operations to be conducted in much deeper water than traditional fixed platforms.
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