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At the time of the Samson acquisition, CDC owned a
$2,600,000 account receivable from Martin Exploration for
drilling done by CDC in 1982. This account receivable was
ultimately settled for $37,000.
CDC's Historic Assets
After the Samson acquisition, CDC owned three rig yards
located in Owentown, Texas, Victoria, Texas, and Elk City,
Oklahoma. These were the same rig yards owned by CDC before the
change of ownership. In May 1987, CDC sold the Victoria rig yard
for $25,309.
In November 1987, CDC sold three of its rigs to Petroleum
Supply Co. for a total of $2,700,000 (approximately $900,000 per
rig).
Working Interests in Oil and Gas Properties
CDC had income from its oil and gas working interests of
$11,122 and $19,014 for its taxable years ending June 30, 1987
and 1988, respectively. CDC's income from its oil and gas
working interests increased to $53,803,784, $64,003,383,
$32,157,221, $61,659,750, and $102,317,645 for its taxable years
ending June 30, 1989, 1990, 1991, 1992, and 1993, respectively.
Rig and Related Equipment Activities
Within 4 months after the Samson acquisition, CDC began
purchasing additional rigs and drill pipe. In the first 12
months after the Samson acquisition, CDC more than doubled the
size of its rig fleet by purchasing 15 rigs. CDC purchased an
additional 17 rigs in 1988 and 2 more rigs in 1989.
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