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The Suits agreement would not have been entered into because
Suits' personnel were primarily experts in drilling operations
and not in marketing drilling rigs and equipment for resale.
CDC continued to market its rigs for drilling and to
maintain them in a state of readiness so that CDC could drill
with them profitably if the market improved.
CDC continued to own two of the three rig yards that it
owned prior to the change of ownership. CDC continued to use the
same name and logo that were used prior to the change of
ownership. CDC continued to own and maintain all of its working
interests in producing wells.
Respondent emphasizes the fact that CDC had over 500
employees at its peak and only four employees just prior to the
change of ownership. The relevant comparison, however, is the
number of CDC employees just before the change compared with the
number of employees after the change of ownership. Due to the
economic conditions at the time, CDC was able to run the business
with only four employees just prior to the change of ownership.
Petitioner established that had CDC been able to acquire
profitable contracts, CDC easily could have hired experienced rig
crews at that time. When CDC drilled 14 wells after the
acquisition, it was able to contract with Suits to provide the
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