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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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