- 20 - 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.Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
Last modified: May 25, 2011