BLAST ENERGY SERVICES, INC. AND CERTAIN OF ITS SUBSIDIARIES MASTER SECURITY AGREEMENT
Exhibit
10.5
BLAST
ENERGY SERVICES, INC. AND CERTAIN OF ITS SUBSIDIARIES
|
To:
|
Laurus
Master Fund, Ltd.
c/o
M&C Corporate Services Limited
X.X.
Xxx 000 XX
Xxxxxx
House
South
Church Street
Xxxxxx
Town
Grand
Cayman, Cayman Islands
|
|
Date
|
August
25, 2006
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To
Whom
It May Concern:
0.Xx
secure
the payment of all Obligations (as hereafter defined), Blast Energy Services,
Inc., a California corporation (the “Company”), each of the other undersigned
parties (other than Laurus Master Fund, Ltd., (“Laurus”)) and each other entity
that is required to enter into this Master Security Agreement (each an
“Assignor” and, collectively, the “Assignors”) hereby assigns and grants to
Laurus a continuing security interest in all of the following property now
owned
or at any time hereafter acquired by such Assignor, or in which such Assignor
now has or at any time in the future may acquire any right, title or interest
(the “Collateral”): all cash, cash equivalents, accounts, accounts receivable,
deposit accounts, inventory, equipment, goods, fixtures, Rig Collateral (as
defined below), documents, instruments (including, without limitation,
promissory notes), contract rights, commercial tort claims set forth on Exhibit
B to this Master Security Agreement, general intangibles (including, without
limitation, payment intangibles and an absolute right to license on terms no
less favorable than those current in effect among such Assignor’s affiliates),
chattel paper, supporting obligations, investment property (including, without
limitation, all partnership interests, limited liability company membership
interests and all other equity interests owned by any Assignor),
letter-of-credit rights, trademarks, trademark applications, tradestyles,
patents, patent applications, copyrights, copyright applications and other
intellectual property in which such Assignor now has or hereafter may acquire
any right, title or interest, all proceeds and products thereof (including,
without limitation, proceeds of insurance) and all additions, accessions and
substitutions thereto or therefor. For the purposes of the foregoing, “Rig
Collateral” shall mean any equipment, inventory or fixtures consisting of
drilling rigs of each Assignor, including, without limitation, the drilling
rigs
indicated on Exhibit C hereto (collectively, the “Rigs”), together with (a) all
the Rigs’ substructure, engine, breaking system, drill pipe, drill collars,
machinery, tools, supplies, parts (including spare parts) and other items and
types of goods now or hereafter used or acquired in connection with the Rigs,
(b) all replacements, accessories, additions, accessions, appurtenances and
substitutions to any of the foregoing, (c) all accounts, general intangibles,
payment intangibles, chattel paper (including electronic chattel paper),
commercial tort claims instruments (including promissory notes) and all other
records relating in any way to the
foregoing
(including, without limitation, any computer software, whether on tape, disk,
card, strip, cartridge or any other form), (d) supporting obligations relating
to the Rigs; and (e) all products and products of any of the foregoing
(including, without limitation, proceeds of insurance). In the event any
Assignor wishes to finance the acquisition in the ordinary course of business
of
any hereafter acquired equipment and has obtained a written commitment from
an
unrelated third party financing source to finance such equipment, Laurus shall
release its security interest on such hereafter acquired equipment so financed
by such third party financing source. Except as otherwise defined herein, all
capitalized terms used herein shall have the meanings provided such terms in
the
Securities Purchase Agreement referred to below. All items of Collateral which
are defined in the UCC shall have the meanings set forth in the UCC. For
purposes hereof, the term "UCC" means the Uniform Commercial Code as the
same may, from time to time, be in effect in the State of New York; provided,
that in the event that, by reason of mandatory provisions of law, any or all
of
the attachment, perfection or priority of, or remedies with respect to, Laurus'
security interest in any Collateral is governed by the Uniform Commercial Code
as in effect in a jurisdiction other than the State of New York, the term “UCC”
shall mean the Uniform Commercial Code as in effect in such other jurisdiction
for purposes of the provisions of this Agreement relating to such attachment,
perfection, priority or remedies and for purposes of definitions related to
such
provisions; provided further, that to the extent that the UCC is used to define
any term herein and such term is defined differently in different Articles
or
Divisions of the UCC, the definition of such term contained in Article or
Division 9 shall govern.
2.The
term
“Obligations” as used herein shall mean and include all debts, liabilities and
obligations owing by each Assignor to Laurus arising under, out of, or in
connection with: (i) that certain Securities Purchase Agreement dated as of
the
date hereof by and between the Company and Laurus (as amended, modified,
restated or supplemented from time to time, the “Securities Purchase Agreement”)
and (ii) the Related Agreements referred to in the Securities Purchase Agreement
(the Securities Purchase Agreement and each Related Agreement as each may be
amended, modified, restated or supplemented from time to time, collectively,
the
“Documents”), and in connection with any documents, instruments or agreements
relating to or executed in connection with the Documents or any documents,
instruments or agreements referred to therein or otherwise, and in connection
with any other indebtedness, obligations or liabilities of each such Assignor
to
Laurus, whether now existing or hereafter arising, direct or indirect,
liquidated or unliquidated, absolute or contingent, due or not due and whether
under, pursuant to or evidenced by a note, agreement, guaranty, instrument
or
otherwise, including, without limitation, obligations and liabilities of each
Assignor for post-petition interest, fees, costs and charges that accrue after
the commencement of any case by or against such Assignor under any bankruptcy,
insolvency, reorganization or like proceeding (collectively, the “Debtor Relief
Laws”) in each case, irrespective of the genuineness, validity, regularity or
enforceability of such Obligations, or of any instrument evidencing any of
the
Obligations or of any collateral therefor or of the existence or extent of
such
collateral, and irrespective of the allowability, allowance or disallowance
of
any or all of the Obligations in any case commenced by or against any Assignor
under any Debtor Relief Law.
3.Each
Assignor hereby jointly and severally represents, warrants and covenants to
Laurus that:
(a)it
is a
corporation, partnership or limited liability company, as the case may be,
validly existing, in good standing and formed under the respective laws of
its
jurisdiction of formation set forth on Schedule A, and each Assignor will
provide Laurus thirty (30) days’ prior written notice of any change in any of
its respective jurisdiction of formation;
(b)its
legal
name is as set forth in its Certificate of Incorporation or other organizational
document (as applicable) as amended through the date hereof and as set forth
on
Schedule A, and it will provide Laurus thirty (30) days’ prior written notice of
any change in its legal name;
(c)its
organizational identification number (if applicable) is as set forth on Schedule
A hereto, and it will provide Laurus thirty (30) days’ prior written notice of
any change in its organizational identification number;
(d)it
is the
lawful owner of its Collateral and it has the sole right to grant a security
interest therein and will defend the Collateral against all claims and demands
of all persons and entities and, in the case of the Rigs, will not maintain,
use
or operate any Rig in violation of any local, state or federal law or any rule,
regulation or order of any governmental agency having jurisdiction
thereof;
(e)it
will
keep its Collateral free and clear of all attachments, levies, taxes, liens,
security interests and encumbrances of every kind and nature (“Encumbrances”),
except (i) Encumbrances securing the Obligations and (ii) Encumbrances securing
indebtedness of each such Assignor not to exceed $200,000 in the aggregate
for
all such Assignors so long as all such Encumbrances are removed or otherwise
released to Laurus’ satisfaction within ten (10) days of the creation
thereof;
(f)it
will,
at its and the other Assignors’ joint and several cost and expense keep the
Collateral in good state of repair and will protect the same from deterioration
(ordinary wear and tear excepted) and will not waste or destroy the same or
any
part thereof other than ordinary course discarding of items no longer used
or
useful in its or such other Assignors’ business;
(g)it
will
not, without Laurus’ prior written consent, sell, exchange, lease or otherwise
dispose of any Collateral, whether by sale, lease or otherwise, except for
the
sale of inventory in the ordinary course of business and for the disposition
or
transfer in the ordinary course of business during any fiscal year of obsolete
and worn-out equipment or equipment no longer necessary for its ongoing needs,
having an aggregate fair market value of not more than $200,000 and only to
the
extent that:
the
proceeds of each such disposition are used to acquire replacement Collateral
which is subject to Laurus’ first priority perfected security interest, or are
used to repay the Obligations or to pay general corporate expenses;
or
following
the occurrence of an Event of Default which continues to exist the proceeds
of
which are remitted to Laurus to be held as cash collateral for the
Obligations;
(h)it
will
not take any action in connection with any contract pertaining to a Rig that
would impair the value of the interest or rights of such Assignor thereunder
or
that would materially impair the interest or rights of Laurus;
(i)it
will
insure or cause the Collateral to be insured in Laurus’ name (as an additional
insured and loss payee) in accordance with standard oilfield industry practices
against loss or damage by fire, theft, burglary, pilferage, loss in transit
and
such other hazards as Laurus shall specify in amounts and under policies by
insurers acceptable to Laurus and all premiums thereon shall be paid by such
Assignor and the policies delivered to Laurus. If any such Assignor fails to
do
so, Laurus may procure such insurance and the cost thereof shall be promptly
reimbursed by the Assignors, jointly and severally, and shall constitute
Obligations;
(j)it
will
keep its chief place of business and chief executive office and the office
where
it keeps its records concerning its account, full and complete copies of its
contracts pertaining to a Rig and chattel paper at the location specified on
the
signature page hereof, or, with the prior written consent of Laurus, at such
other location as specified by such Assignor from time to time;
(k)it
will
at all reasonable times allow Laurus or Laurus’ representatives free access to
and the right of inspection of the Collateral, including, without limitation,
the record of all payments received and any credits granted on any of its
accounts pertaining to a Rig;
(l)such
Assignor (jointly and severally with each other Assignor) hereby indemnifies
and
saves Laurus harmless from all loss, costs, damage, liability and/or expense,
including reasonable attorneys’ fees, that Laurus may sustain or incur to
enforce payment, performance or fulfillment of any of the Obligations and/or
in
the enforcement of this Master Security Agreement or in the prosecution or
defense of any action or proceeding either against Laurus or any Assignor
concerning any matter growing out of or in connection with this Master Security
Agreement, and/or any of the Obligations and/or any of the Collateral except
to
the extent caused by Laurus’ own gross negligence or willful misconduct (as
determined by a court of competent jurisdiction in a final and nonappealable
decision);
(m)all
commercial tort claims (as defined in the Uniform Commercial Code as in effect
in the State of New York) held by any Assignor are set forth on Schedule B
to
this Master Security Agreement; each Assignor hereby agrees that it shall
promptly, and in any event within five (5) Business Days after the same is
acquired by it, notify Laurus of any commercial tort claim acquired by it and
unless otherwise consented to in writing by Laurus, it shall enter into a
supplement to this Master Security Agreement granting to Laurus a security
interest in such commercial tort claim, securing the Obligations;
(n)any
and
all Collateral which is tangible, including, without limitation, the Rigs:
(i)
is and will remain tangible personal property and is not and shall not
constitute real property fixtures, (ii) is removable from and is not essential
to the premises at which the tangible
Collateral
is located, (iii) is capable of satisfying its intended business function,
and
no additional property is required to be added to the tangible Collateral in
order to satisfy such business function;
(o)such
Assignor has assigned to each Rig a specific number, which numbers, as of the
Closing Date, are set forth on Schedule C hereto and such Assignor shall not
change the number assignment to such Rig without prior notice to
Laurus;
(p)the
physical location of Rig is, as of the Closing Date, set forth on Schedule
C
hereto and such Assignor shall not cause or permit any Rig or other Rig
Collateral to be removed from the United States without the express prior
written consent of Laurus; and
(q)such
Assignor shall maintain a sign on each Rig, which sign shall (i) indicate that
such Rig is the property of such Assignor and (ii) display the number that
has
been assigned to such Rig by such Assignor.
4.The
occurrence of any of the following events or conditions shall constitute an
“Event of Default” under this Master Security Agreement:
(a)any
covenant or any other term or condition of this Master Security Agreement is
breached in any material respect and such breach, to the extent subject to
cure,
shall continue without remedy for a period of fifteen (15) days after the
occurrence thereof;
(b)any
representation or warranty, or statement made or furnished to Laurus under
this
Master Security Agreement by any Assignor or on any Assignor’s behalf should
prove to any time be false or misleading in any material respect on the date
as
of which made or deemed made;
(c)the
loss,
theft, substantial damage, destruction, sale or encumbrance to or of any of
the
Collateral or the making of any levy, seizure or attachment thereof or thereon
except to the extent:
such
loss
is covered by insurance proceeds which are used to replace the item or repay
Laurus; or
said
levy, seizure or attachment does not secure indebtedness in excess of $100,000
in the aggregate for all Assignors and such levy, seizure or attachment has
been
removed or otherwise released within ten (10) days of the creation or the
assertion thereof;
(d)an
Event
of Default shall have occurred under and as defined in any
Document.
5.Upon
the
occurrence of any Event of Default and at any time thereafter, Laurus may
declare all Obligations immediately due and payable and Laurus shall have the
remedies of a secured party provided in the UCC as in effect in the State of
New
York, this Agreement and other applicable law. Upon the occurrence of any Event
of Default and at any time thereafter,
Laurus
will have the right to take possession of the Collateral and to maintain such
possession on any Assignor’s premises or to remove the Collateral or any part
thereof to such other premises as Laurus may desire. Upon Laurus’ request, each
Assignor shall assemble or cause the Collateral to be assembled and make it
available to Laurus at a place designated by Laurus. If any notification of
intended disposition of any Collateral is required by law, such notification,
if
mailed, shall be deemed properly and reasonably given if mailed at least ten
(10) days before such disposition, postage prepaid, addressed to the applicable
Assignor either at such Assignor’s address shown herein or at any address
appearing on Laurus’ records for such Assignor. Any proceeds of any disposition
of any of the Collateral shall be applied by Laurus to the payment of all
expenses in connection with the sale of the Collateral, including reasonable
attorneys’ fees and other legal expenses and disbursements and the reasonable
expenses of retaking, holding, preparing for sale, selling, and the like, and
any balance of such proceeds may be applied by Laurus toward the payment of
the
Obligations in such order of application as Laurus may elect, and each Assignor
shall be liable for any deficiency. For the avoidance of doubt, following the
occurrence and during the continuance of an Event of Default, Laurus shall
have
the immediate right to withdraw any and all monies contained in any deposit
account in the name of any Assignor and controlled by Laurus and apply same
to
the repayment of the Obligations (in such order of application as Laurus may
elect). The parties hereto each hereby agree that the exercise by any party
hereto of any right granted to it or the exercise by any party hereto of any
remedy available to it (including, without limitation, the issuance of a notice
of redemption, a borrowing request and/or a notice of default), in
each case, hereunder, under the Securities Purchase Agreement or under any
other Related Agreement which has been publicly filed with the SEC
shall not constitute confidential information and no party
shall have any duty to the other party to maintain such information as
confidential.
6.If
any
Assignor defaults in the performance or fulfillment of any of the terms,
conditions, promises, covenants, provisions or warranties on such Assignor’s
part to be performed or fulfilled under or pursuant to this Master Security
Agreement, Laurus may, at its option without waiving its right to enforce this
Master Security Agreement according to its terms, immediately or at any time
thereafter and without notice to any Assignor, perform or fulfill the same
or
cause the performance or fulfillment of the same for each Assignor’s joint and
several account and at each Assignor’s joint and several cost and expense, and
the cost and expense thereof (including reasonable attorneys’ fees) shall be
added to the Obligations and shall be payable on demand with interest thereon
at
the highest rate permitted by law, or, at Laurus’ option, debited by Laurus from
any other deposit accounts in the name of any Assignor and controlled by
Laurus.
7.Each
Assignor appoints Laurus, any of Laurus’ officers, employees or any other person
or entity whom Laurus may designate as such Assignor’s attorney, with power to
execute such documents on each such Assignor’s behalf, but solely to the extent
Laurus deems such action necessary in the exercise of its commercially
reasonable discretion to carry out the terms of this Master Security Agreement,
and to supply any omitted information and correct patent errors in any documents
executed by any Assignor or on any Assignor’s behalf; to file financing
statements against such Assignor covering the Collateral (and, in connection
with the filing of any such financing statements, describe the Collateral as
“all assets and all personal property, whether now owned and/or hereafter
acquired” (or any substantially similar variation thereof));
to
sign
such Assignor’s name on public records, but solely to the extent Laurus deems
such action necessary in the exercise of its commercially reasonable discretion
to carry out the terms of this Master Security Agreement; and to do all other
things Laurus deems necessary in the exercise of its commercially reasonable
discretion to carry out the terms of this Master Security Agreement. Each
Assignor hereby ratifies and approves all acts of the attorney and neither
Laurus nor the attorney will be liable for any acts of commission or omission,
nor for any error of judgment or mistake of fact or law other than gross
negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision). This power being coupled
with an interest, is irrevocable so long as any Obligations remains
unpaid.
0.Xx
delay
or failure on Laurus’ part in exercising any right, privilege or option
hereunder shall operate as a waiver of such or of any other right, privilege,
remedy or option, and no waiver whatever shall be valid unless in writing,
signed by Laurus and then only to the extent therein set forth, and no waiver
by
Laurus of any default shall operate as a waiver of any other default or of
the
same default on a future occasion. Laurus’ books and records containing entries
with respect to the Obligations shall be admissible in evidence in any action
or
proceeding, shall be binding upon each Assignor for the purpose of establishing
the items therein set forth and shall constitute prima facie proof thereof.
Laurus shall have the right to enforce any one or more of the remedies available
to Laurus, successively, alternately or concurrently. Each Assignor agrees
to
join with Laurus in executing such documents or other instruments to the extent
required by the UCC in form satisfactory to Laurus and in executing such other
documents or instruments as may be required or deemed necessary by Laurus for
purposes of affecting or continuing Laurus’ security interest in the
Collateral.
9.The
Assignors shall jointly and severally pay all of Laurus’ out-of-pocket costs and
expenses, including reasonable fees and disbursements of in-house or outside
counsel and appraisers, in connection with the preparation, execution and
delivery of the Documents, and in connection with the prosecution or defense
of
any action, contest, dispute, suit or proceeding concerning any matter in any
way arising out of, related to or connected with any Document, subject to the
terms of Section 2(c) of the Securities Purchase Agreement. The Assignors shall
also jointly and severally pay all of Laurus’ reasonable and customary fees,
charges, out-of-pocket costs and expenses, including fees and disbursements
of
counsel and appraisers, in connection with (a) the preparation, execution and
delivery of any waiver, any amendment thereto or consent proposed or executed
in
connection with the transactions contemplated by the Documents, (b) Laurus’
obtaining performance of the Obligations under the Documents, including, but
not
limited to the enforcement or defense of Laurus’ security interests, assignments
of rights and liens hereunder as valid perfected security interests, (c) any
attempt to inspect, verify, protect, collect, sell, liquidate or otherwise
dispose of any Collateral, (d) any appraisals or re-appraisals of any property
(real or personal) pledged to Laurus by any Assignor as Collateral for, or
any
other Person as security for, the Obligations hereunder and (e) any
consultations in connection with any of the foregoing. The Assignors shall
also
jointly and severally pay Laurus’ customary bank charges for all bank services
(including wire transfers) performed or caused to be performed by Laurus for
any
Assignor at any Assignor’s request or in connection with any Assignor’s loan
account (if any) with Laurus. All such costs and expenses together with all
filing, recording and search fees, taxes and interest payable by the Assignors
to Laurus shall be payable on demand and shall be secured by the Collateral.
If
any tax by any
nation
or
government, any state or other political subdivision thereof, and any agency,
department or other entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government (each,
a
“Governmental Authority”) is or may be imposed on or as a result of any
transaction between any Assignor, on the one hand, and Laurus on the other
hand,
which Laurus is or may be required to withhold or pay, the Assignors hereby
jointly and severally indemnify and hold Laurus harmless in respect of such
taxes, and the Assignors will repay to Laurus the amount of any such taxes
which
shall be charged to the Assignors’ account; and until the Assignors shall
furnish Laurus with indemnity therefor (or supply Laurus with evidence
satisfactory to it that due provision for the payment thereof has been made),
Laurus may hold without interest any balance standing to each Assignor’s credit
(if any) and Laurus shall retain its liens in any and all
Collateral.
10.THIS
MASTER SECURITY AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.
All of the rights, remedies, options, privileges and elections given to Laurus
hereunder shall inure to the benefit of Laurus’ successors and assigns. The term
“Laurus” as herein used shall include Laurus, any parent of Laurus’, any of
Laurus’ subsidiaries and any co-subsidiaries of Laurus’ parent, whether now
existing or hereafter created or acquired, and all of the terms, conditions,
promises, covenants, provisions and warranties of this Agreement shall inure
to
the benefit of each of the foregoing, and shall bind the representatives,
successors and assigns of each Assignor.
11.Each
Assignor hereby consents and agrees that the state of federal courts located
in
the County of New York, State of New York shall have exclusive jurisdiction
to
hear and determine any claims or disputes between Assignor, on the one hand,
and
Laurus, on the other hand, pertaining to this Master Security Agreement or
to
any matter arising out of or related to this Master Security Agreement,
provided, that Laurus and each Assignor acknowledges that any appeals from
those
courts may have to be heard by a court located outside of the County of New
York, State of New York, and further provided, that nothing in this Master
Security Agreement shall be deemed or operate to preclude Laurus from bringing
suit or taking other legal action in any other jurisdiction to collect, the
Obligations, to realize on the Collateral or any other security for the
Obligations, or to enforce a judgment or other court order in favor of Laurus.
Each Assignor expressly submits and consents in advance to such jurisdiction
in
any action or suit commenced in any such court, and each Assignor hereby waives
any objection which it may have based upon lack of personal jurisdiction,
improper venue or forum non conveniens.
Each
Assignor hereby waives personal service of the summons, complaint and other
process issues in any such action or suit and agrees that service of such
summons, complaint and other process may be made by registered or certified
mail
addressed to such assignor at the address set forth on the signature lines
hereto and that service so made shall be deemed completed upon the earlier
of
such Assignor’s actual receipt thereof or three (3) days after deposit in the
U.S. mails, proper postage prepaid.
The
parties desire that their disputes be resolved by a judge applying such
applicable laws. Therefore, to achieve the best combination of the benefits
of
the judicial system and of
arbitration,
the parties hereto waive all rights to trial by jury in any action, suite,
or
proceeding brought to resolve any dispute, whether arising in contract, tort,
or
otherwise between Laurus, and/or any Assignor arising out of, connected with,
related or incidental to the relationship established between them in connection
with this Master Security Agreement or the transactions related
hereto.
00.Xx
is
understood and agreed that any person or entity that desires to become an
Assignor hereunder, or is required to execute a counterpart of this Master
Security Agreement after the date hereof pursuant to the requirements of any
Document, shall become an Assignor hereunder by (x) executing a Joinder
Agreement in form and substance satisfactory to Laurus, (y) delivering
supplements to such exhibits and annexes to such Documents as Laurus shall
reasonably request and (z) taking all actions as specified in this Master
Security Agreement as would have been taken by such Assignor had it been an
original party to this Master Security Agreement, in each case with all
documents required above to be delivered to Laurus and with all documents and
actions required above to be taken to the reasonable satisfaction of
Laurus.
[Remainder
of this page intentionally left blank]
13.All
notices from Laurus to any Assignor shall be sufficiently given if mailed or
delivered to such Assignor’s address set forth below.
Very
truly yours,
By:
/s/
Xxxx X’Xxxxx
Name:
Xxxx X’Xxxxx
Title:
EVP, CFO, and Co-CEO
Address: 00000
Xxxxxx Xxxxx Xxxxxxxxx
Xxxxx
000
Xxxxxxx,
XX 00000
Facsimile:
No.: 000-000-0000
EAGLE
DOMESTIC DRILLING OPERATIONS LLC
By:
BLAST
ENERGY SERVICES, INC., its
sole
member
By:
/s/
Xxxxx X. Xxxxx
Name:
Xxxxx X. Xxxxx
Title:
President and Co-CEO
Address: 00000
Xxxxxx Xxxxx Xxxxxxxxx
Xxxxx
000
Xxxxxxx,
XX 00000
Facsimile:
No.: 000-000-0000
ACKNOWLEDGED:
LAURUS
MASTER FUND, LTD.
By:
/s/
Laurus Master Fund, LTD.
Name:
Title:
Address:
SCHEDULE
A
|
Entity
|
Jurisdiction
of
Formation
|
Organization
Identification Number
|
|
California
|
C2263090
|
|
|
Eagle
Domestic Drilling Operations, LLC
|
Texas
|
800179717
|
SCHEDULE
B
COMMERCIAL
TORT CLAIMS
None.
SCHEDULE
C
DESCRIPTION
OF RIGS
Rig
#11 -
Xxxxxxxx County, Arkansas
Rig
#00 -
Xxxxx Xxxxxx, Xxxxxxxx
Xxx
#00 -
Xxxxxx Xxxxxx, Xxxxx
Rig
#14 -
Work in progress - XxXxxxx County, Oklahoma
Rig
#15 -
Work in progress - XxXxxxx County, Oklahoma
Rig
#17 -
Components - XxXxxxx County, Oklahoma
All
working rigs and rigs that are in the process of being completed are mechanical
rigs with the capability to drill between 10,000’ - 14,000’ with 4.5” OD drill
pipe. All rigs are equipped with 1000 HP Triplex mud pumps and new diesel
engines.
