Samson Investment Company and Subsidiaries - Page 20

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               In April 1987, CDC purchased rig No. 40, a rig constructed             
          by Suits.  CDC used rig No. 40 from July 1987 to 1989 to drill 14           
          wells on properties for which Sam Resource Co., a member of the             
          Samson group, was the operator.  After the change of ownership,             
          this was the only drilling performed by CDC as the drilling                 
          contractor.  Officers and employees of CDC supervised CDC's rig             
          No. 40 drilling performed by Suits.  After the change of                    
          ownership, CDC was selective in its rig acquisitions, inspecting            
          approximately 10 rigs for every one that it purchased.                      
               In early 1989, CDC purchased a 21-acre rig yard in Enid,               
          Oklahoma.  The Enid yard provided storage, maintenance, and                 
          security for rigs.                                                          
               None of CDC's employees before the Samson acquisition                  
          remained employees of CDC after the Samson acquisition.  CDC did            
          not ask Mr. Arnold or Mr. West to continue his employment with              
          CDC because CDC had other employees performing the work                     
          previously performed by Mr. Arnold and had access to the                    
          financial and accounting staff of Samson (so it no longer needed            
          Mr. West).  None of the former employees were necessary to                  
          continue CDC's contract drilling business.                                  
               After the Samson acquisition, CDC never obtained any                   
          drilling contracts for the deep well rigs which it had fabricated           
          in 1981 and 1982.  After CDC stacked its original deep well rigs            
          between 1982 and July 1984, neither CDC nor any member of the               
          Samson group used them for contract drilling.                               



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