Exhibit 10.16
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ASSET PURCHASE AGREEMENT
DATED AS OF AUGUST 12, 2005
BETWEEN
C AND L SERVICES, LP
AS SELLER
AND
UNION DRILLING TEXAS, LP
AS BUYER
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ASSET PURCHASE AGREEMENT
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(U-15; XXXXXXXX N-95; IDECO 525; NATIONAL 110)
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THIS ASSET PURCHASE AGREEMENT is made and entered into as of
August 12, 2005, between C AND L SERVICES, LP, a Texas limited partnership
("Seller"), and UNION DRILLING TEXAS, LP, a Texas limited partnership ("Buyer").
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS, Buyer desires to purchase the Assets (as hereinafter
defined) from Seller; and
WHEREAS, Seller desires to sell the Assets to Buyer in
exchange for the payment by Buyer of the Purchase Price (as hereinafter
defined);
NOW, THEREFORE, for and in consideration of the mutual
benefits derived and to be derived herefrom by each party, Seller and Buyer
agree as follows:
ARTICLE I
DEFINITIONS
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1.01 Basic Definitions. In addition to the terms defined in the
introductory paragraph of this Agreement, for purposes hereof, the following
terms shall have the meanings set forth in this Article I, unless the context
otherwise requires:
"Affiliate" means, as to the person specified, any person
controlling, controlled by or under common control with such person, with the
concept of control in such context meaning the possession, directly or
indirectly, of the power to direct or cause to direct or cause the direction of
the management policies of another, whether through the ownership of voting
securities, by contract, or otherwise.
"Agreement" means this Asset Purchase Agreement and all
schedules and exhibits attached hereto.
"Assets" has the meaning specified in Section 2.01.
"Best Efforts" means a party's best efforts in accordance with
reasonable commercial practice.
"Business Day" means a day on which national banks are
generally open for the transaction of business in Pittsburgh, Pennsylvania.
"Buyer" has the meaning specified in the preamble.
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"Closing" means the consummation of the sale and purchase of
the Assets as contemplated by this Agreement which shall take place on the
Closing Date.
"Closing Date" has the meaning specified in Section 9.01.
"Code" means the Internal Revenue Code of 1986, as amended,
and any successor thereto.
"Delivery Date" means, with respect to any Asset, the date
that Buyer has accepted the delivery of such Asset in accordance with the
provisions of Section 8.08 hereof.
"Final Delivery Date" means the date that Buyer has accepted
the delivery of the final installment of Assets hereunder in accordance with the
provisions of Section 8.08 hereof.
"Lien Release Confirmation" means a letter from Community Bank
of Cleburne (the "Bank") addressed to Buyer (i) confirming either that the
Assets are not subject to any lien or security interest in favor of the Bank or
that such Assets may be transferred by the Seller to the Buyer free and clear of
any and all liens and security interests that may exist in favor of the Bank (as
the case may be) and (ii) containing an undertaking by the Bank in favor of the
Buyer to file either an amendment or a termination (as the case may be) of any
existing financing statement that may be of record against the Seller with
respect to any of the Assets to release such Assets from such Assets from any
such record lien and security interest.
"Purchase Price" means the consideration specified in Section
3.01 to be paid by Buyer to Seller in connection with the sale of the Assets by
Seller to Buyer under the terms of this Agreement.
"Seller" has the meaning specified in the preamble.
1.02 Additional Definitions. Other terms are elsewhere defined in
this Agreement and shall, for purposes of this Agreement, have the meanings so
specified unless the context otherwise requires. The definitions given to the
terms herein shall be applicable to both the singular and plural forms of such
terms as the context requires.
ARTICLE II
PURCHASE AND SALE OF ASSETS
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2.01 Assets to be Purchased. Upon the terms and subject to the
conditions set forth in this Agreement, at the Closing, Seller agrees to sell,
assign, transfer, convey and, subject to Section 8.08 hereof deliver, to Buyer,
and Buyer agrees to purchase, the following (collectively, the "Assets"):
(a) the four land drilling rigs described on Schedule 2.01(a),
together with all of such drilling rigs' engines, machinery, and
fittings, and the drilling equipment, blowout preventers,
handling tools, spare parts, supplies, tubulars and drill pipe
relating to such drilling rigs described on Schedule 2.01(a)(i)
(collectively, the "Rigs") and such other drilling equipment,
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spare parts, supplies, drill pipe and/or other assets, as
described Schedule 2.01(a)(ii) (collectively, the "Other
Assets");
(b) the following tangible and intangible assets used or held for use
in connection with the ownership, maintenance and operation of
the Assets, to the extent assignable by law and Seller or its
Affiliates have the right to assign and transfer such assets:
(i) all records to be delivered to Buyer pursuant to Section
2.04; and
(ii) the certificates, licenses, permits, consents, operating
authorities, orders, exemptions, franchises, approvals,
registrations and other authorizations and applications
therefor specifically associated with the maintenance and
operation of the Assets ("Permits"); and
(iii) all warranties relating to the Assets providing benefits to
the owner of the Assets.
2.02 Risk and Expense. Seller shall bear the risks inherent in the
ownership of the Assets until the Final Delivery Date. Seller shall maintain in
full force and effect the insurance policies currently covering the Assets
through the Final Delivery Date. Should any of the Rigs (and/or components
thereof) suffer any damage between the date hereof and the Delivery Date, at the
option of the Buyer, (i) the Seller shall assign and/or pay over to Buyer any
insurance proceeds receivable and/or received (as the case may be) by Sellers
with respect to such damage, together with an amount equal to any insurance
deductible or coinsurance amount applied against such damages or (ii) Buyer
shall be entitled to deduct from the Purchase Price Balance payable on the Final
Delivery Date an amount equal to the value of the damaged Assets.
2.03 Nonassumption of Liabilities. Buyer does not assume and shall in
no event be liable for any liabilities, debts or obligations of Seller, whether
accrued, absolute, matured, contingent or otherwise, including, without
limitation, (a) any foreign, federal, state, county, or local taxes, including,
without limitation, excise taxes, or documentary transfer taxes, which in each
case arise from the ownership of the Assets on or prior to the Final Delivery
Date or from the consummation of the transactions contemplated by this
Agreement; (b) any obligations or liabilities arising from any Environmental
Laws (as hereinafter defined) or hazardous substances, or any other obligations
or liabilities of any type relating to ownership or operation of any property
either directly or indirectly by Seller or the ownership or operation of any
business, property or assets utilized by Seller arising prior to or on the Final
Delivery Date; (c) any obligations or liabilities whatsoever which may be
imposed upon Buyer as a successor to Seller either directly or indirectly or
otherwise by any Environmental Laws; (d) any obligations or liabilities arising
out of, relating to, or in connection with any action, suit, proceeding, or
investigation pending or threatened against Seller or any of its shareholders,
officers, directors, employees, or agents; (e) any labor or employment-related
claims, obligations, or liabilities which accrue or arise from events occurring
prior to, on or after the Final Delivery Date, including, but not limited to,
any claim of obligation or liability relating to wages, employee benefits,
severance pay, workers' compensation, including insurance premiums, unemployment
insurance, breach of employment contract, wrongful discharge, employment
discrimination, or
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unfair labor practice; (f) any claims, obligations, or liabilities arising under
or relating to any alleged violation of the Worker Adjustment and Retraining
Notification Act of 1988, as amended; (g) any liabilities for fees or expenses
incident to the preparation of this Agreement or the consummation of the
transactions contemplated hereby (including, without limitation, counsel,
accountant's or finder's fees of Seller); or (h) trade payables or expenses,
debt, contracts, agreements, leases or other obligations of Seller, except to
the extent of the assignment and the assumption of the daywork drilling
contracts described in Section 2.05 below.
2.04 Delivery of Records.
(a) Buyer shall be entitled to the records physically located on
the Rigs on the Closing Date and relevant to the Rigs
(and/or the components thereof) and/or on or with the Other
Assets on the Closing Date.
(b) Seller shall deliver to Buyer at the time and place of
delivery of the Assets, as provided in Section 8.08 below,
copies of any technical or operational manuals or
maintenance records related to the Assets.
(c) Seller shall be entitled to retain all originals of its
corporate, financial, accounting, legal, tax and audit
records, subject to Buyer's rights of inspection as set
forth in Section 8.02.
2.05 Assignment of Daywork Drilling Contracts. Buyer agrees to accept
an assignment from Seller of the rights and obligations of Seller under the
following two existing contracts of Seller relating to the Rigs: (i) that
certain IADC Daywork Drilling Contract between Hallwood Petroleum, LLC
("Hallwood") and C and L Services, LP (BENCO Management, Inc./General Partner),
dated April 15, 2005, pursuant to which it was intended that the National 110
Rig be deployed in Xxxxxx County, Texas (the "Hallwood Contract") and (ii) that
certain IADC Daywork Drilling Contract between Infinity Oil & Gas of Texas, Inc.
("Infinity") and C & L Services, LP or assigns, dated June 2, 2005, pursuant to
which it was intended that the U 15 Rig be deployed in the Newark East Xxxxxxx
Shale Field (the "Infinity Contract"; the Hallwood Contract and the Infinity
Contract being sometimes hereinafter collectively referred to as the "Assigned
Contracts"). Notwithstanding the foregoing, Seller acknowledges that it is the
intent of the Buyer to enter into new contracts with Hallwood and Infinity,
rather than to perform under the Assigned Contracts.
ARTICLE III
PURCHASE PRICE
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3.01 Consideration for Assets. As consideration for the sale by
Seller to Buyer of the Assets, Buyer shall pay to Seller the sum of Eight
Million Six Hundred Fifty Thousand and No/100 Dollars ($8,650,000.00) in United
States currency (the "Purchase Price"), which Purchase Price shall be payable as
follows, subject to any reduction thereof in accordance with any provisions of
this Agreement (including, without limitation, Section 2.02 or Section 12.03
hereof):
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(a) Five Hundred Thousand and No/100 Dollars ($500,000.00) in
United States currency of the Purchase Price (the "Deposit")
shall be paid upon the execution by both parties of this
Agreement;
(b) Three Million Nine Hundred Thousand and No/100 Dollars
($3,900,000.00) in United States currency of the Purchase
Price (the "Second Installment"; the Deposit, together with
the Second Installment, being sometimes hereinafter
individually referred to as an "Installment Payment" and
collectively as the "Installment Payments") shall be paid
within ten (10) days of the execution by both parties of
this Agreement, provided that the Buyer shall not be
obligated pay the Second Installment unless and until the
Seller shall have delivered to the Buyer the Lien Release
Confirmation; and
(c) The balance of the Purchase Price shall be paid in United
States currency (the "Purchase Price Balance") upon the
acceptance by Buyer of the delivery by Seller to Buyer of
the last to be delivered of the Assets, in accordance with
Sections 8.08 and 9.04, subject to Sections 2.02 and 12.03
hereof.
3.02 Deposit and Installment Payments. The Deposit shall be
nonrefundable, unless the Seller shall breach its obligations to deliver the
Assets in accordance with the terms of this Agreement and the Buyer shall elect
to rescind this Agreement as a result of such breach, in which case, the Deposit
shall be fully refunded to Buyer, without prejudice to any other remedies that
the Buyer may have with respect to such breach. If no Assets are delivered to
Buyer hereunder solely as a result of a breach of this Agreement by Buyer, the
Deposit shall be paid to or retained by Seller, in which case, the parties agree
(i) that the amount of the Deposit (A) constitutes liquidated damages for
Buyer's breach of this Agreement and (B) is not a penalty, and (ii) the amount
of the Deposit shall be the limit of Buyer's liability for any breach of this
Agreement. In the event that the Buyer has paid the Second Installment to
Seller, but no Assets have been delivered to Buyer hereunder on or prior to
September 30, 2005, Buyer shall be entitled to a return of the Second
Installment, without prejudice to any other rights that the Buyer may have in
the event that the failure of such delivery is a result of a breach by Seller
hereunder. In the event that the Buyer has paid the Second Installment to
Seller, and Seller breaches its obligations to deliver all of the Assets to
Buyer hereunder on or before September 30, 2005, and Buyer elects to rescind
this Agreement to the extent of any Assets not delivered by Seller in accordance
with the terms of this Agreement, Buyer shall be entitled to a return of such
portion of the Second Installment, if any, as shall be equal to the amount by
which the Second Installment exceeds the value of the Assets delivered by Seller
under this Agreement, without prejudice to any other rights that the Buyer may
have in the event that the failure of such delivery is a result of a breach by
Seller. On the Final Delivery Date, the Installment Payments shall be applied
towards the Purchase Price for the Assets hereunder.
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ARTICLE IV
REPRESENTATIONS, WARRANTIES OF SELLER
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Seller represents and warrants to and agrees with Buyer that,
as of the date hereof and as of the Final Delivery Date:
4.01 Organization and Qualification. Seller is a limited partnership
duly organized, validly existing, and in good standing under the laws of Texas,
has the full power and authority, to own, operate and lease its property and to
carry on its business as now conducted, and is duly qualified and is in good
standing in each jurisdictions in which the character of its properties and
assets currently owned or leased or the nature of its business transactions
makes such qualification necessary.
4.02 Due Execution. The execution, delivery and performance of this
Agreement by Seller and the consummation of the transactions contemplated hereby
have been duly authorized by all requisite corporate action including the
approval by the general and limited partners of Seller. This Agreement and all
other agreements and written obligations entered into or undertaken in
connection with the transactions contemplated hereby constitute the valid and
legally binding obligations of Seller enforceable against Seller in accordance
with their respective terms.
4.03 Legal Power and Authority. Seller has full power and authority
to enter into this Agreement and to perform all acts and to do all things
required on its part to be performed in connection with this Agreement and the
transactions contemplated hereby, and has granted full power and authority to
its appropriate officers to take all actions, to do all things and to make,
execute and deliver all documents as may be necessary or required in order to
effectuate and consummate the transactions contemplated hereby.
4.04 No Conflicts; Assigned Contracts. The execution, delivery and
performance by Seller of this Agreement and the other documents, instruments and
agreements contemplated hereby and the consummation of the transaction
contemplated hereby and thereby will not (a) conflict with or result in a breach
of any provisions of the organizational documents of Seller, (b) result in a
material default or the creation of any lien or encumbrance or give rise to any
right of termination, cancellation or acceleration under any of the terms,
conditions or provisions of any note, bond, mortgage, indenture, license, lease
or other agreement to which Seller is a party or by which it or the Assets may
be bound or affected, or (c) violate any order, writ, injunction, judgment,
decree, statute, rule or regulation applicable to Seller or any of its
properties or assets. Neither the sale by Seller nor the use by Buyer of the
Assets will infringe any United States or foreign patents or any copyright,
trademark or proprietary information rights of others. The Seller has delivered
to the Buyer true, correct and complete copies of each of the Assigned
Contracts.
4.05 Litigation. There are no material suits, actions, proceedings or
governmental investigations or inquiries pending or, to Seller's knowledge,
threatened against Seller or the Assets that reasonably may be expected to have
a materially adverse effect on the sale by Seller of the Assets.
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4.06 Brokers. Seller has incurred no obligation or liability,
contingent or otherwise, for brokers' or finders' fees with respect to the
matters provided for in this Agreement.
4.07 Title to and Condition of Assets. On the date of this Agreement,
Seller lawfully owns and is lawfully possessed of good, valid, and indefeasible
title to the Assets. At the Closing, Seller shall lawfully own and be lawfully
possessed of, and shall sell, transfer and assign to Buyer, good, valid, and
indefeasible title to the Assets, free and clear of any and all mortgages,
security interests, liens, claims, debts, charges, or other encumbrances of any
kind. Seller agrees to warrant and defend the title to, and possession of, the
Assets for the benefit of Buyer against the claims and demands of all persons
claiming an interest in the Assets as of the Closing Date and/or as of the
Delivery Date, regardless of when any such claims or demands may be asserted.
Seller has not received any written notice from any governmental agency, board,
bureau, body, department or authority of any federal, state, municipal or
foreign jurisdiction, to the effect that any of the Assets is in violation of
any applicable ordinance, regulation or building, zoning, environmental or other
law in respect thereof, the violation of which will have a material adverse
effect on the ownership or use of any of such Assets. Each of the Rigs and Other
Assets delivered to Buyer in accordance with the provisions of this Agreement
shall be in at least as good condition upon such delivery as the condition that
such Assets were in when inspected by Buyer and/or Buyer's representatives prior
to the date hereof.
4.08 Insurance. Seller has in place insurance policies of the types
and in coverage amount sufficient to fully insure any damage or casualty loss
which may arise between the date hereof and the Final Delivery Date with respect
to the Assets. Seller has previously delivered to Buyer a true and complete list
of all deductible and retention amount applicable to the Assets under such
policies. Seller does not know of any threatened termination of or material
alteration of coverage under any of such policies. All premiums payable under
all such policies have been timely paid and Seller has otherwise complied fully
with the terms and conditions of all such policies.
4.09 Compliance with Laws. Seller has substantially complied with,
and is in substantial compliance with, all federal, state, local and foreign
statutes, laws, ordinances, regulations, rules, permits, judgments, orders or
decrees applicable to the Assets, and there does not exist, to the best of
Seller's knowledge, any basis for any claim of default under or violation of any
such statute, law, ordinance, regulation, rule, judgment, order or decree with
respect to the Assets.
4.10 No Untrue Statement. In or in connection with the making of this
Agreement, together with the various schedules and exhibits hereto, Seller has
not made any untrue statements of a material fact or omitted to state a material
fact necessary in order to make the statements made by it herein not misleading.
4.11 Sales Tax Exemption. To the knowledge and belief of Seller, the
conveyance of the Assets by Seller is an occasional sale under Section 151.304
of the Texas Tax Code and the rules promulgated thereunder and is thus exempt
from the imposition of the Texas sales tax.
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ARTICLE V
REPRESENTATIONS AND WARRANTIES OF BUYER
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Buyer represents and warrants to and agrees with Seller that,
as of the date hereof and as of the Final Delivery Date:
5.01 Organization and Qualification. Buyer is a limited partnership
duly organized, validly existing, and in good standing under the laws of Texas,
has the full power and authority, to own, operate and lease its property and to
carry on its business as now conducted, and is duly qualified and is in good
standing in each jurisdiction in which the character of its properties and
assets currently owned or leased or the nature of its business transactions
makes such qualification necessary.
5.02 Due Execution. The execution, delivery and performance of this
Agreement by Buyer and the consummation of the transactions contemplated hereby
have been duly authorized by all requisite corporate action including the
approval by its sole general partner. This Agreement and all other agreements
and written obligations entered into or undertaken in connection with the
transactions contemplated hereby constitute the valid and legally binding
obligations of Buyer enforceable against Buyer in accordance with their
respective terms.
5.03 Legal Power and Authority. Buyer has full power and authority to
enter into this Agreement and to perform all acts and to do all things required
on its part to be performed in connection with this Agreement and the
transactions contemplated hereby, and has granted full power and authority to
its appropriate officers to take all actions, to do all things and to make,
execute and deliver all documents as may be necessary or required in order to
effectuate and consummate the transactions contemplated hereby.
5.04 No Conflicts. The execution, delivery and performance by Buyer
of this Agreement and the other documents, instruments and agreements
contemplated herein will not (a) conflict with or result in a breach of any
provision of the organizational documents of Buyer, (b) result in a material
default or the creation of any lien or encumbrance or give rise to any right of
termination, cancellation, or acceleration under any of the terms, conditions or
provisions of any material note, bond, mortgage, indenture, license or other
agreement to which Buyer is a party or by which it or any of its properties
assets or may be bound or affected, or (c) violate any order, writ, injunction,
judgment, decree, statute, rule or regulation applicable to Buyer or any of its
respective properties or assets.
5.05 Litigation. There are no material suits, actions, proceedings or
governmental investigations or inquiries pending or, to Buyer's knowledge,
threatened against Buyer or its properties, assets, operations or businesses
that reasonably may be expected to have a materially adverse effect on the
purchase by Buyer of the Assets.
5.06 Brokers. Buyer has incurred no obligation or liability,
contingent or otherwise, for brokers' or finders' fees with respect to the
matters provided for in this Agreement.
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ARTICLE VI
CONDITIONS TO OBLIGATIONS OF SELLER
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The obligations of Seller to consummate the transactions
contemplated herein are subject, at the option of Seller, to the fulfillment, on
or prior to the Closing Date, of each of the following conditions:
6.01 Representations and Warranties. Each of the representations and
warranties of Buyer herein contained shall be true and correct (disregarding all
references to materiality contained therein) in all material respects on the
Closing Date.
6.02 Performance. Buyer shall have performed all material
obligations, covenants, and agreements hereunder and shall have complied with
all material covenants and conditions contained in this Agreement to be
performed or complied with by Buyer at or prior to the Closing.
6.03 Legal Prohibition. No provision of any applicable law or
regulation and no judgment, injunction, order or decree shall prohibit the
consummation of the Closing.
ARTICLE VII
CONDITIONS TO OBLIGATIONS OF BUYER
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The obligations of Buyer to consummate the transactions
contemplated herein are subject, at the option of Buyer, to the fulfillment on
or prior to the Closing Date of each of the following conditions:
7.01 Representations and Warranties. Each of the representations and
warranties of Seller herein contained shall be true and correct (disregarding
all references to materiality contained therein) in all material respects on the
Closing Date.
7.02 Performance. Seller shall have performed all material
obligations, covenants and agreements hereunder and shall have complied with all
material covenants and conditions contained in this Agreement to be performed or
complied with by Seller at or prior to the Closing.
7.03 Legal Prohibition. No provision of any applicable law or
regulation and no judgment, injunction, order or decree shall prohibit the
consummation of the Closing.
7.04 Absence of Liens. Each of the Assets shall be free and clear of
any and all mortgages, security interests, liens, claims, debts, charges, or
other encumbrances of any kind.
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ARTICLE VIII
COVENANTS AND AGREEMENTS OF THE PARTIES
BEFORE, RELATING TO AND SUBSEQUENT TO THE CLOSING
Seller and Buyer hereby covenant and agree as follows:
8.01 Expenses. Except as may be otherwise provided in this Agreement,
Seller and Buyer shall pay and discharge, or cause to be paid and discharged,
their own expenses incurred in connection with the preparation, authorization,
execution, and performance of this Agreement and the transactions contemplated
herein, including, without limitation, inspection fees and fees and expenses of
counsel, accountants and consultants. Seller shall be responsible for all costs
and expenses incurred in connection with the movement and delivery of the Assets
to Buyer's yard in Cresson, Texas.
8.02 Access; Books and Records. Seller shall provide the officers,
employees and attorneys of Buyer reasonable access, during normal business hours
upon Buyer's reasonable prior notice to Seller, to the Assets and the records of
Seller specifically relating thereto. Seller shall cooperate fully with such
representatives of Buyer in connection with such review. If and to the extent
necessary to comply with any disclosure requirements under the Securities Act of
1933 or the Securities Exchange Act of 1934, or any rules or regulations
thereunder, or for any other reasonable business purpose, Buyer shall have the
right, at its own expense, at any time or from time to time within three (3)
years after the Final Delivery Date during reasonable business hours upon
reasonable notice to Seller to inspect, and make copies of or extracts from, any
of the records of Seller relating to the business of Seller or the Assets and
which are not provided to Buyer (the "Retained Records"). Without limiting the
generality of the foregoing, Seller shall make available to Buyer any employees
or consultants necessary or useful to the preparation of historical audited
financial statements relating to the Assets and shall use its best efforts to
cause such employees or consultants to deliver to the Buyer's auditors all
certifications, attestations and representations deemed necessary or useful for
the completion of such historical audits. None of the Retained Records in the
possession of Seller shall be destroyed prior to three (3) years after the Final
Delivery Date without the consent of Buyer, unless first reproduced by microfilm
or any other similar process. In the event that during such period Seller wishes
to destroy any of the Retained Records at any time or from time to time after
the Closing Date, Seller shall give not less than sixty (60) days notice to
Buyer and Buyer shall have the right, at its own expense, during reasonable
business hours to remove such records and keep possession of the same.
8.03 Preservation of Assets; Certain Information. From the date
hereof and until the Delivery Date, Seller shall use its Best Efforts to
preserve, maintain and protect the Assets in at least as good condition as the
condition of such Assets upon the inspection by Buyer and/or Buyer's
representatives prior to the date hereof. Any unpatented knowledge or
information concerning Seller's products, methods or manufacturing process that
Seller may disclose to Buyer incident to the purchase of the Assets covered
under this Agreement shall, unless otherwise specifically agreed in writing, be
deemed to have been disclosed as a part of the consideration for this Agreement,
and Seller agrees not to assert any claim against Buyer by reason of Buyer's use
thereof.
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8.04 Notices of Certain Events. Until the Final Delivery Date, Seller
will promptly notify Buyer of any action, suit, proceeding, claim or
investigation which is overtly threatened or commenced against Seller which is
not fully insured against (except standard deductible or self-retention amounts)
and which relates to or affects the Assets or this Agreement or the transactions
contemplated hereby (including, without limitation, any claim for alleged patent
infringement), and Buyer will promptly notify Seller of any action, suit,
proceeding, claim or investigation which is overtly threatened or commenced
against Buyer which is not fully insured against (except standard deductible or
self-retention amounts) and which relates to and materially and adversely
affects Buyer or its business or affects this Agreement or the transactions
contemplated hereby. Seller further agrees to promptly notify Buyer of (i) any
notice or other communication from any governmental or regulatory agency or
authority in connection with the transactions contemplated by this Agreement;
(ii) any notice or other communication from any person or entity alleging that
the consent of such person or entity is or may be required in connection with
the transactions contemplated by this Agreement; and (iii) the damage or
destruction by fire or other casualty of any Asset or part thereof or in the
event that any Asset or part thereof becomes the subject of any proceeding or,
to the knowledge of any Seller, threatened proceeding for the taking thereof or
any part thereof or of any right relating thereto by condemnation, eminent
domain or other similar governmental action.
8.05 Actions with Respect to Closing. Seller will use its Best
Efforts to obtain the satisfaction of the conditions to Closing applicable to
Seller set forth in Article VII as soon as practicable. Buyer will use its Best
Efforts to obtain the satisfaction of the conditions to Closing applicable to
Buyer set forth in Article VI as soon as practicable.
8.06 Public Statements. Neither the Buyer nor Seller, nor any of
their respective Affiliates, shall make any news release or other announcement
concerning the transactions contemplated hereby without first obtaining approval
from each party hereto; except that Buyer may disclose the transactions
contemplated hereby in connection any offering of its securities or as otherwise
may be required by law.
8.07 Continued Effectiveness of Representations and Warranties.
Seller and Buyer shall each use its Best Efforts to cause the representations
and warranties made by it herein to continue to be true and correct on and as of
the each Delivery Date as if made on and as of such Delivery Date.
8.08 Delivery of Assets. Seller, at its sole cost and expense, shall
move the Rigs and Other Assets from their current location and deliver such Rigs
and Other Assets FOB to Buyer's yard in Cresson, Texas, which delivery shall be
made in several installments, with the final delivery of all of the Assets to be
completed on or before September 30, 2005. Seller shall commence the installment
delivery of the Assets as soon as possible following the execution of this
Agreement, in accordance with a schedule to be mutually agreed between Buyer and
Seller. Each of the Rigs and Other Assets delivered to Buyer in accordance with
the provisions hereof shall be in at least as good condition upon such delivery
as the condition that such Assets were in when inspected by Buyer and/or Buyer's
representatives prior to the date hereof. Buyer shall accept delivery of any
Assets delivered by Seller to Buyer in accordance with the provisions of this
Agreement (including, without limitation, such provisions with respect to
condition of the Assets and time and place of delivery).
11
8.09 Additional Conditions to Buyer's Obligation to Accept Delivery
of Assets and Pay the Purchase Price. The obligations of the Buyer to accept
delivery of any Assets and to pay the Purchase Price for any Assets shall be
subject to (i) the continued truth and correctness of the Seller's
representations, warranties and covenants with respect to such Assets,
including, without limitation, representations, warranties and covenants with
respect to the condition of such Assets and the absence of liens with respect to
such Assets and (ii) the continued absence of any provision of any applicable
law or regulation or any judgment, injunction, order or decree that would
prohibit the consummation of the transactions contemplated under this Agreement.
In addition, the obligation of the Buyer to pay the Second Installment on or
before the tenth (10th ) day following the date hereof is subject to the
delivery by Seller to the Buyer of the Lien Release Confirmation on or prior to
such date.
ARTICLE IX
CLOSING
-------
9.01 Time of Closing. Subject to the satisfaction by Seller and Buyer
of the conditions set forth in Articles VII and VI, respectively, the Closing of
the transactions contemplated by this Agreement shall take place on the date
hereof (sometimes hereinafter referred to as the "Closing Date").
9.02 Actions of Seller at the Closing. At the Closing, Seller shall:
(a) deliver to Buyer a duly executed Xxxx of Sale and General
Instrument of Assignment of the Assets (the "Xxxx of Sale")
in the form of Exhibit A, dated as of the Closing Date;
(b) deliver to Buyer any and all other affidavits, certificates,
documents, or agreements required by any federal, state, or
local governmental or administrative body or authority
necessary to pass title to the Assets to Buyer, together
with such operation manuals, engineering drawings and
specifications, technical documentation and copies of
certificates pertaining to the Assets as Seller may possess;
and
(c) execute such other documents and instruments, and take such
other actions, as may be necessary to carry out Seller's
obligations under this Agreement that are required to be
performed on or before the Closing Date.
9.03 Actions of Buyer at Closing. At the Closing, Buyer shall deliver
to Seller the Deposit, by wire transfer to the account or accounts designated in
writing by Seller.
9.04 Passage of Title; Delivery of Assets; Payment of Purchase Price
Balance. Title to the Assets will pass from Seller to Buyer at the Closing. The
Assets will be delivered by Seller to Buyer in accordance with the provisions
Section 8.08 hereof. Payment of the Purchase Price Balance (and the Second
Installment, if not previously paid by Buyer to Seller in accordance with the
provisions hereof) will be paid by Buyer to Seller on the Final Delivery Date,
subject to Section 2.02 hereof.
12
9.05 Further Assurances. Subject to the terms and provisions of this
Agreement, from time to time subsequent to the Closing Date, each party agrees
to use reasonable efforts to execute and deliver, at the reasonable request of
the other party, such additional documents and instruments as may, in the
reasonable opinion of the requesting party, be reasonably required to carry out
the intents and purposes of this Agreement and the transactions contemplated
hereby.
ARTICLE X
TAXES
-----
10.01 Income Taxes. Seller shall assume responsibility for, and shall
bear and pay, all income taxes, and other similar taxes on gross income, net
income, or gross receipts (including any applicable interest or penalties)
incurred or imposed by any United States or foreign taxing authority with
respect to the operation of the Assets prior to Delivery Date.
10.02 Sales Taxes. Buyer shall assume responsibility for, and shall
bear and pay, all state and local sales and use taxes (including any applicable
interest or penalties) incurred or imposed with respect to the sale by Seller to
Buyer of the Assets pursuant to this Agreement.
10.03 Tax Indemnities. Seller agrees to indemnify and hold harmless
Buyer and its successors and assigns from and against any and all claims,
demands, assessments, deficiencies, liabilities, costs, and expenses (including
reasonable attorneys' fees and other costs and expenses of Buyer incident to the
defense of same) that are caused by, arise out of, or result from any liability
for the payment of federal, state or local taxes (including applicable penalties
and interest) attributable to the operation of the Assets prior to the Delivery
Date for which the responsibility for payment has been allocated to Seller
pursuant to the preceding provisions of this Article X.
ARTICLE XI
INDEMNIFICATION
---------------
11.02 Indemnification by Seller. In addition to the other indemnities
given by Seller to Buyer in this Agreement, Seller shall indemnify and hold
harmless Buyer and its successors and assigns from and against any and all
claims, demands, losses, damages, liabilities, costs, expenses, and deficiencies
(including, without limitation, reasonable attorneys' fees and other costs and
expenses of Buyer incident to the defense of any claim that results in
litigation, or the settlement of any claim, or the enforcement by Buyer or the
provisions of this Section 11.01) caused by, arising out of, or resulting from,
and to pay Buyer any sum that Buyer pays or becomes obligated to pay on account
of, (a) the ownership of the Assets by Seller prior to the Closing Date, (b) the
use and/or operation of the Assets prior to the Delivery Date, (c) any breach or
default in the performance by Seller of any covenant or agreement of Seller
contained in this Agreement or in any other instrument delivered by or on behalf
of Seller pursuant hereto, (d) any breach of a warranty or an inaccurate or
erroneous representation made by Seller herein or in any other instrument
delivered by or on behalf of Seller pursuant hereto, or (e) any and all actions,
suits, proceedings, claims, demands or judgments incident to any of the
foregoing. If any person shall assert a claim against Buyer or its affiliates
that, if successful, might result in a
13
breach or default by Seller under this Agreement, Buyer shall give Seller prompt
written notice thereof, and Seller shall have the right to participate in the
defense thereof and to be represented, at the sole expense of Seller, by counsel
selected by it. No such claim, demand, or other matter shall be compromised or
settled by Seller or Buyer in any manner that might adversely affect the
interest of the other party without the prior written consent of such other
party (which consent shall not be unreasonably withheld).
11.02 Indemnification by Buyer. In addition to the other indemnities
given by Buyer to Seller in this Agreement, Buyer shall indemnify and hold
harmless Seller and its successors and assigns from and against any and all
claims, demands, losses, damages, liabilities, costs, expenses, and deficiencies
(including, without limitation, reasonable attorneys' fees and other costs and
expenses of Seller incident to the defense of any claim that results in
litigation, or the settlement of any claim, or the enforcement by Seller or the
provisions of this Section 11.02) caused by, arising out of, or resulting from,
and to pay Seller any sum that Seller pays or becomes obligated to pay on
account of, (a) the ownership of the Assets by Buyer from and after the Closing
Date, (b) the use and/or operation of the Assets from and after the Delivery
Date, (c) any breach or default in the performance by Buyer of any covenant or
agreement of Buyer contained in this Agreement or in any other instrument
delivered by or on behalf of Buyer pursuant hereto, (d) any breach of a warranty
or an inaccurate or erroneous representation made by Buyer herein or in any
other instrument delivered by or on behalf of Buyer pursuant hereto, or (e) any
and all actions, suits, proceedings, claims, demands or judgments incident to
any of the foregoing. If any person shall assert a claim against Seller or its
affiliates that, if successful, might result in a breach or default by Buyer
under this Agreement, Seller shall give Buyer prompt written notice thereof, and
Buyer shall have the right to participate in the defense thereof and to be
represented, at the sole expense of Buyer, by counsel selected by it. No such
claim, demand, or other matter shall be compromised or settled by Buyer or
Seller in any manner that might adversely affect the interest of the other party
without the prior written consent of such other party (which consent shall not
be unreasonably withheld).
ARTICLE XII
REMEDIES
--------
12.01 Rescission. This Agreement may be rescinded (in whole or in
part) and the transactions consummated hereunder unwound and voided at any time
after the Closing and prior to the Final Delivery Date:
(a) by mutual written consent of Buyer and Seller;
(b) by Buyer, if
(i) the Final Delivery Date shall not have occurred by
September 30, 2005 (provided that the right to rescind
this Agreement under this clause (i) shall not be
available to Buyer if Buyer's failure to fulfill any of
its obligations under this Agreement or its
misrepresentation or breach of warranty hereunder has
been the cause thereof); or
14
(ii) there has been a material breach by Seller of any
covenant or agreement, or a material inaccuracy of any
representation or warranty of Seller, contained in this
Agreement which has rendered the satisfaction of any
condition to the obligations of Buyer impossible and
such breach or inaccuracy has not been cured by Seller
within five (5) Business Days after Seller's receipt of
notice thereof from Buyer, or waived by Buyer.
(c) by Seller, if
(i) the Final Delivery Date shall not have occurred by
September 30, 2005 (provided that the right to
terminate this Agreement under this clause (i) shall
not be available to Seller if Seller's failure to
fulfill any of its obligations under this Agreement or
its misrepresentation or breach of warranty hereunder
has been the cause thereof); or
(ii) there has been a material breach by Buyer of any
covenant or agreement, or a material inaccuracy of any
representation or warranty of Buyer, contained in this
Agreement which has rendered the satisfaction of any
condition to the obligations of Seller impossible and
such breach or inaccuracy has not been cured by Buyer
within five (5) Business Days after Buyer's receipt of
notice thereof from Seller, or waived by Seller.
12.02 Effect of Rescission. In the event of the rescission of this
Agreement (or any part hereof) pursuant to Section 12.01 by Buyer or Seller,
written notice thereof shall forthwith be given to the other party specifying
the provision hereof pursuant to which such rescission is made, and this
Agreement shall become void and have no effect to the extent specified in such
notice, and, except as otherwise expressly set forth herein (including, without
limitation, as provided in Section 3.02), there shall be no further liability
hereunder on the part of Buyer or Seller or any of their respective directors,
officers, employees, partners, stockholders or representatives; provided that
nothing contained in this Section 12.02 shall relieve any party from liability
for damages actually incurred (excluding consequential damages) for breach of
any covenant or agreement, or for the inaccuracy of any representation or
warranty, contained herein.
12.03 Buyer's Right to Take Possession of and Move Assets. In the
event that the Final Delivery Date shall not have occurred on or before
September 30, 2005, other than solely as a result of any breach by Buyer of any
of its obligations hereunder, the Buyer shall have the right, at Buyer's sole
option, but at Seller's sole cost and expense, to hire any other person or
entity to move and transport any Assets that have not been delivered by Seller
to Buyer in accordance with the provisions of this Agreement (hereinafter, the
"Remaining Assets"), from the then current location thereof to Buyer's yard in
Cresson, Texas, in which case, Buyer and its representatives (inclusive of any
person or entity hired by Buyer to move and transport any Remaining Assets)
shall have the right to enter onto Seller's premises and any other place where
the Remaining Assets are then located, during normal business hours and at any
other reasonable time, to inspect and/or take possession of such Remaining
Assets for purposes of moving and
15
transporting such Assets to Buyer's yard in Cresson, Texas. Buyer and/or its
representatives shall conduct itself on Seller's premises in compliance with all
applicable safety rules and regulations. Buyer shall be entitled to deduct from
the amount of the Purchase Price Balance owing by Buyer to Seller hereunder, the
aggregate amount of all of the costs and expenses incurred by Buyer in
connection with the taking possession of and moving of any Remaining Assets from
the then current location thereof to the Buyer's yard in Cresson, Texas.
12.04 Specific Performance; Rights Cumulative. The parties hereto
shall have the right to bring an action for specific performance of this
Agreement. The rights and remedies reserved to the parties hereunder shall be
cumulative.
ARTICLE XIII
MISCELLANEOUS PROVISIONS
------------------------
13.01 Notices. All notices required or permitted to be given hereunder
shall be in writing and shall be delivered personally, or sent by reputable
overnight courier, or mailed by certified or registered United States Mail with
postage prepaid, or sent by telecopy (provided such telecopy is confirmed by
mail in the manner previously described), addressed to the appropriate party at
the address for such party shown below or at such other address as such party
shall have theretofore designated by written notice delivered to the party
giving such notice:
If to Seller:
-------------
C and L Services, LP
0000 Xxxxx Xxxx Xx.
Xxxxxxxx, Xxxxx 00000
Attn: Xxxx Xxxxx and Xxxxx Xxxxxx
Telephone No.: (000) 000-0000
Telecopy No.: (000) 000-0000
If to Buyer:
------------
Union Drilling Texas, LP
South Pittsburgh Technology Park
0000 Xxxxxxxxxx Xxxx
Xxxxxxxxxxx, Xxxxxxxxxxxx 00000
Attn: Xxxxxxxxxxx Xxxxxx
Telephone No.: (000) 000-0000
Telecopy No.:(000) 000-0000
Any notice given in accordance herewith shall be deemed to have
been given when delivered to the addressee in person or transmitted by telecopy,
or one (1) day after such notice has been delivered to a reputable overnight
courier, or five (5) days after such notice has been deposited in the United
States Mail, as the case may be, Seller or Buyer may change the
16
address to which such communications are to be directed by giving written notice
to the other parties in the manner provided in this Section 13.01.
13.02 Entire Agreement. This Agreement, the documents, instruments and
agreements to be executed pursuant hereto, the schedules and exhibits hereto,
and the documents referred to herein, constitute the entire agreement between
the parties hereto pertaining to the subject matter hereof and supersede all
prior agreements, understandings, negotiations and discussions, whether oral or
written, of the parties pertaining to the subject matter hereof.
13.03 Successors and Assigns. This agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns. Buyer may assign its rights hereunder only to an Affiliate or
subsidiary of Buyer.
13.04 Amendment. This Agreement may be amended only by an instrument
in writing executed by all of the parties hereto.
13.05 Waiver. Any of the terms, covenants, representations, warranties
or conditions hereof may be waived only by a written instrument executed by or
on behalf of the party hereto waiving compliance. The failure of any party at
any time or times to require performance of any provision hereof shall in no
manner affect the right of such party at a later time to enforce the performance
of such provisions. No waiver by any party of any condition, or of any breach of
any term, covenant, representation, or warranty contained in this Agreement, in
any one or more instances, shall be deemed to be or construed as a further or
continuing waiver of any such condition or breach, or a waiver of any other
condition or of any breach of any other term, covenant, representation or
warranty.
13.06 Captions. The captions in this Agreement are for convenience
only and shall not be considered a part of or affect the construction or
interpretation of any provision of this Agreement.
13.07 No Third-Party Beneficiaries. Nothing in this Agreement shall
entitle any party other than Buyer and Seller to any claim, cause of action,
remedy, or right of any kind.
13.08 Governing Law. This Agreement shall be governed by the laws of
the State of Texas, without regard to conflicts of law principles.
13.09 Severability. If any term or other provision of this Agreement
is invalid, illegal, or incapable of being enforced by any rule of law or public
policy, all other conditions and provisions of this Agreement shall nevertheless
remain in full force and effect so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any adverse manner to
any party. Upon such determination that any term or other provision is invalid,
illegal, or incapable of being enforced, the parties hereto shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible in an acceptable manner to the end that the
transactions contemplated hereby are fulfilled to the extent possible.
17
13.10 Execution Counterparts. This Agreement may be executed in any
number of counterparts, and each such counterpart hereof shall be deemed to be
an original instrument, but all such counterparts together shall constitute for
all purposes one agreement.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date first above written.
SELLER:
C AND L SERVICES, LP
By /s/XXXX XXXXX
----------------------------------------
Name: Xxxx Xxxxx
Title: President
BUYER:
UNION DRILLING TEXAS, LP, by
UNION DRILLING TEXAS GP, LLC, its
General Partner
By /s/XXXXXXXXXXX XXXXXX
----------------------------------------
Xxxxxxxxxxx Xxxxxx, President
18
INDEX TO SCHEDULES AND EXHIBITS
Schedule
Number Description
------ -----------
2.01(a)(i) Rigs (inclusive of related Assets)
2.01(a)(ii) Other Assets
Exhibits
--------
Exhibit A Form of Xxxx of Sale
Schedule 2.01(a)(i)
Rigs (inclusive of related Assets)
NATIONAL 110 RIG
Components and fittings relating to a National 110 drilling rig, including
without limitation the following:
NATIONAL 110 SINGLE DRUM DRAWWORKS, 1,500-HP, XXXXX Grooved f/1-1/4" Drilling
Line, NATIONAL Make-Up & Breakout Catheads, Overrunning Clutch, Air Driller's
Console Controls, , PARKERSBURG 6032 60" Hydromatic Brakes
MAST/SUBSTRUCTURE
142'H x 21'6"W Cantilever Mast, 1,000,000# SHL, IDEAL 6-Sheave Pin Type Crown
Block, (2) Crown Stands less one lower midsection, xxxxxxx not coming complete
25'H Box on Box Substructure, including V door and steps
MUD PUMPS
Xxxxxxx Denver PZ-11 Triplex Mud Pump, Forged Steel Fluid End w/Quick Change
Valve Cover & Quick Change Cylinder Head Caps, rebuilt with 90 day warranty,
includes one set of liners and expendables
Xxxxxxx Denver PZ-11 Triplex Mud Pump, Forged Steel Fluid End w/Quick Change
Valve Cover & Quick Change Cylinder Head Caps, rebuilt with 90 day warranty,
includes one set of liners and expendables
ROTATING/TRAVELING EQUIPMENT
NATIONAL 500-Ton Block/Hook Combination new
WELL CONTROL EQUIPMENT
HYDRIL GK 12-900 5,000# Annular Blowout Preventer, used by C and L on one well
3" Choke Manifold, Skidded bad condition
RIG HOUSES
New, 10'W x 40'L Top Doghouse, Skidded, w/Lockers,
Used Doghouse
NATIONAL 110 - CONTINUED
MUD SYSTEM
1,000-Barrel Mud System, 3-Tank, Mud Agitators in Each Tank, Skidded
WATER/FUEL TANK/LUBESTER
10,000-Gallon Fuel Tank, Skidded with lubester and pumps
AUXILIARY EQUIPMENT
42"H x 60'L 2-Section Catwalk
4-Sets (8) Pipe Racks
(6) 8'W x 20'L Matting Boards
U-15 RIG
Components and fittings relating to a U-15 drilling rig, including without
limitation the following:
MID-CONTINENT U-15 SINGLE DRUM DRAWWORKS, 800-HP, XXXXX Grooved f/1-1/8"
Drilling Line, XXXXXX Make-Up & Breakout Catheads, Overrunning Clutch, Air
Driller's Console Controls, Crown-O-Matic, PARKERSBURG 15" Triple Hydromatic
Brake
2-Engine Compound w/Single Pedestal Pump Drive, (1) CAT D-353 Diesel Engines,
(2) QUINCY 325 Air Compressors Drawworks
MAST/SUBSTRUCTURE
XXX X. XXXXX 131'H x 18'6"W Cantilever Mast, , 5-Sheave Pin Type Crown Block,
Crown Stand 300,000 SHL, Built 1952, poor condition
15'H Box on Box Substructure, V-Door, Steps, Safety Rails, Air Volume Tank, Air
Lines with built in parts room and change room
MUD PUMPS
BOMCO F-800 Triplex Mud Pump, Forged Steel Fluid End w/Quick Change Valve Cover
& Quick Change Cylinder Head Caps, Pulsation Dampener, Shear Relief Valve,
Charging Pump, Master Skidded, p/b CAT D-398 Diesel Engine
BOMCO F-800 Triplex Mud Pump, Forged Steel Fluid End w/Quick Change Valve Cover
& Quick Change Cylinder Head Caps, Pulsation Dampener, Shear Relief Valve,
Charging Pump, Master Skidded, p/b CAT D-398 Diesel Engine
ROTATING/TRAVELING EQUIPMENT
250-Ton Traveling Block/Hook Combination Soya - new
200-Ton Swivel , Skytop 65X
National 27-1/2" X 53" Rotary Table
MID-CONTINENT U-15 - continued
WELL CONTROL EQUIPMENT
Rebuilt KOOMEY 4-Station Closing Unit
3" Choke Manifold, Skidded needs re-built
RIG HOUSE
8'W x 30'L Top Doghouse, Skidded, w/Lockers, SATELLITE Automatic Driller, XXXXXX
XXXXXX Type-D Weight Indicator, 4-Pin Drilling Recorder instrumentation all new
GENERATORS/UTILITY HOUSE
Motor Control Center/Receptacle Outlets
Voltage Panel f/Trailers
All Above Mounted in 10'W x 25'L Utility House, w/Parts Room, Change Room,
Fluorescent Lights, Skidded
MUD SYSTEM
520-Barrel Mud System, 2-Tank, , Mud Flow Troughs, Internal & External Plumbing,
(4) 5" x 6" Centrifugal Pumps p/b 75-HP Electric Motors, Skidded
MCM Linear Motion Shale Shaker new
Desander w/(2) 10" Cones new
Desilter w/(10) 5" Cones new
MID-CONTINENT U-15 - continued
HANDLING TOOLS
XX Xxxx X Xxxxxx Xxxxx, 0" - 00-0/0"
XXXXXXXXX XXXX 5,000# Capacity Air Hoist
AUXILIARY EQUIPMENT
Rotary Hose
12,000' Capacity Wireline Unit
5,000' of 1-1/8" Drilling Line, Spool, Stand
42"H x 40'L Catwalk
2-Sets (4) Pipe Racks
Lubester rack with fuel pumps
New 3" x 2" water pump with electric motor on substructure
500 BBL Water Tank
XXXXXXXX N-95
Components and fittings relating to a Xxxxxxxx N-95 drilling rig, including
without limitation the following:
SKYTOP XXXXXXXX N-95 SINGLE DRUM DRAWWORKS, 1,200-HP, XXXXX Grooved f/1-1/4"
Drilling Line, XXXXXX Make-Up & Breakout Catheads, Overrunning Clutch, Air
Driller's Console Controls, , 6032 PARKERSBURG Hydromatic Brake
MAST/SUBSTRUCTURE
142'H x 21'6"W Cantilever Mast, 750,000# SHL, 5-Sheave Pin Type Crown Block,
(2) Crown Stands
18'H Box on Box Substructure, V-Door, Steps, Safety Rails, Built-In Parts Room,
Locker Room, Air Volume Tank, Air Lines, (1) 2" x 3" Centrifugal Circulating
Pumps p/b 20-HP Electric Motors, Deadline Anchor, rewired with lights
MUD PUMPS
T-1300 Ideco (Dresser) Triplex Mud Pump, 1,600-HP, Forged Steel Fluid End
w/Quick Change Valve Cover & Quick Change Cylinder Head Caps, with one complete
set of expendables
T-1300 Ideco (IRI) Triplex Mud Pump, 1,600-HP, Forged Steel Fluid End w/Quick
Change Valve Cover & Quick Change Cylinder Head Caps, Shear Relief Valve, with
one complete set of expendables
ROTATING/TRAVELING EQUIPMENT
National 20-1/2" X 53" Rotary Table
RIG HOUSE
10'W x 40'L Top Doghouse, Skidded, w/Lockers, 4-Pin Drilling Recorder (Reported
to be New)
Generator and Utility House - Bare House Only
MUD SYSTEM
825-Barrel Mud System, 2-Tank, , Mud Flow Troughs, Internal & , 5" x 6"
Centrifugal Pumps p/b Electric Motors
SKYTOP XXXXXXXX N-95 - CONTINUED
WATER/FUEL TANK/LUBESTER
Less than 500-Barrel Water Tank, Skidded, with parts room
Lubester, rack with fuel pumps
AUXILIARY EQUIPMENT
42"H x 48'L Catwalk
3-Sets (6) Pipe Racks
New 3" X 2"water pump with electric motor
IDECO 525
Components and fittings relating to an Ideco 525 drilling rig, including without
limitation the following:
IDECO H525
2-Engine Compound, p/b
MAST/SUBSTRUCTURE
131'H x 18'6"W Cantilever Mast, 440,000# SHL, IDEAL 5-Sheave, Crown Stand
12'H x 7'W Box Type Substructure, Steps, Safety Rails, Built-In Parts Room,
Locker Room, Air Volume Tank, Air Lines, 3" x 2" Centrifugal Circulating Pump,
NATIONAL Deadline Anchor Substructure andderrick newly rewired
MUD PUMPS
BOMCO F-800 Triplex Mud Pump, 800-HP, Forged Steel Fluid End w/Quick Change
Valve Cover & Quick Change Cylinder Head Caps, Pulsation Dampener, Shear Relief
Valve, Master Skidded, charge pump
BOMCO F-800 Triplex Mud Pump, 800-HP, Forged Steel Fluid End w/Quick Change
Valve Cover & Quick Change Cylinder Head Caps, Pulsation Dampener, Shear Relief
Valve, Master skidded, charge pump
ROTATING/TRAVELING EQUIPMENT
150-Ton Block/Hook Combination
150-Ton Swivel
RIG HOUSES
8'W x 30'L Top Doghouse, Skidded, w/Lockers
Generator House, w/Parts Room, Change Room, Fluorescent Lights, Heater, Skidded
with wiring
MUD SYSTEM
600-Barrel Mud System, 2-Tank, Mud Flow Troughs, Internal & External Plumbing
IDECO H525 - CONTINUED
OTHER EQUIPMENT
42"H x 48'L 2-Section Catwalk
3-Sets (6) Pipe Racks
Schedule 2.01(a)(ii)
Other Assets
Other Assets Presently in Possession of Seller
----------------------------------------------
--------------------------------------------------------------------------------------------------------------------
XXX XXX
XXXXX # XXXX # XXX # XXXXXXXXXXX
--------------------------------------------------------------------------------------------------------------------
Pipe 322 jts, 4 1/2", 16.60 few
20 lb, little S135, 75% yellow,
40% needs reworked, per Xxxxxx
Xxxxxxxx
--------------------------------------------------------------------------------------------------------------------
Pipe at Hospital Yard, 377 jts
approx 11,700' 5", 19.5lb, S135
Double White, Cert Paper will be
sent, RK Pipe & Supply?
--------------------------------------------------------------------------------------------------------------------
000-000 000 Misc items, slips, elevators, hoses, valves, hammer unions,
fittings, bails 3 1/2" X 11' 8"L, clutch parts, xxxxxxx stand, new
steel
--------------------------------------------------------------------------------------------------------------------
228&229 Fuel Trailer, 1958 w/ 1957 Xxxx,
000000, tank 65,155lb @ 8 lb per
gal= 8,144 gallon, 2004-2005 WV
sticker, mfg s/n # NB189D, TITLED
--------------------------------------------------------------------------------------------------------------------
34, 35 18 & 18A Stir Boxes qty 2
--------------------------------------------------------------------------------------------------------------------
57 & 58 37 Water Tank / Tool Rm, tank 17' 8"L X 7'H X 10'W, tool house 12'L,
porch 9', skid 41'L X 10'H X 10W
--------------------------------------------------------------------------------------------------------------------
1 1 Sub, front side, not assigned, 6'H X 6'8" X L
--------------------------------------------------------------------------------------------------------------------
2 1 Sub, rear, not assigned, 6'H X 6'8" X L
--------------------------------------------------------------------------------------------------------------------
3 1A Sub, front side, not assigned, 6'H X 6'8" X L
--------------------------------------------------------------------------------------------------------------------
4 1A Sub, rear, not assigned, 6'H X 6'8" X L
--------------------------------------------------------------------------------------------------------------------
5 1A Sub with Xxxxxx Xxxxxx anchor, tag not readable, Sheeting shows
rust and dozer nicks
--------------------------------------------------------------------------------------------------------------------
6 2 Primed Skid maybe used for Pump Skid, 7'W X 30'L X 12"H, mud
boated bottom
--------------------------------------------------------------------------------------------------------------------
11 5 Dog House with lights and wiring, skid 10"W X 9' 4"H X 24" 8"L,
house 10W X 8'7"H X 13'4"L
--------------------------------------------------------------------------------------------------------------------
12 5 Dog House inside
--------------------------------------------------------------------------------------------------------------------
20 9 & 9A Drill Line Spool Holders, Qty 2
--------------------------------------------------------------------------------------------------------------------
26 12 Lube Tank
--------------------------------------------------------------------------------------------------------------------
59 38 & 39 Spools 10" 3000 X 10" 5000 and 13 3/8" 3000 Both ends
spacer spools
--------------------------------------------------------------------------------------------------------------------
60 40 & 41 Pumps # 40 & 41 needs rebuilt Xxxxxxxxxx 0X0, maybe 75 hp? Pump
42 needs rebuilt Mission 6 X 8
--------------------------------------------------------------------------------------------------------------------
61 43 Pump Rebuilt, Mission Magnum 6 X 5, no power
--------------------------------------------------------------------------------------------------------------------
64 46 Choke Rack 8' X 52" X 12'L
--------------------------------------------------------------------------------------------------------------------
65 47 Engine Skid primed, for PZ11 ? 64"W X 13'L
--------------------------------------------------------------------------------------------------------------------
66 48 Hand Rails and Misc steps in weeds
--------------------------------------------------------------------------------------------------------------------
67 49 Accumulator Oil Tank, tank 16"W X 74"L X 4'H, skid 81" X 106"L
--------------------------------------------------------------------------------------------------------------------
00 00 Xxxx Xxxxxx, 0 0/0" Xx D, 5,000 ends, 10,000 rubber
--------------------------------------------------------------------------------------------------------------------
71 53 Matt Board 9'6" X 8' X 9"T
--------------------------------------------------------------------------------------------------------------------
72 54 Skid, 64"W X 16'L X 10"H, engine area 86"L X 4'W
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
UDI UDI
PHOTO # ITEM # RIG # DESCRIPTION
--------------------------------------------------------------------------------------------------------------------
73 55 Desilter yellow, Eq# 14-005
--------------------------------------------------------------------------------------------------------------------
142 86 Rack for Mobile Homes, qty 4, 4' X 4' 7" X 55"T marked ABCD.
--------------------------------------------------------------------------------------------------------------------
143 87 Koomey 80 Accumulator BWB040-11B, s/n 3651, mfg 6/1982
--------------------------------------------------------------------------------------------------------------------
144 88 Xxxxxx Tongs Type B
--------------------------------------------------------------------------------------------------------------------
145 88B Tong Heads
--------------------------------------------------------------------------------------------------------------------
146 89 Junk Tub yellow
--------------------------------------------------------------------------------------------------------------------
147 90 Junk Tub
--------------------------------------------------------------------------------------------------------------------
148 91 Pump Liners 6"
--------------------------------------------------------------------------------------------------------------------
160 102 Wire Line Unit Poor Condition
--------------------------------------------------------------------------------------------------------------------
162 105 Pipe Racks 5 pcs, one is under Rig 6
--------------------------------------------------------------------------------------------------------------------
163 106 Pipe Rack
--------------------------------------------------------------------------------------------------------------------
174 109 Pipe Tub
--------------------------------------------------------------------------------------------------------------------
175 110 Pipe Tub square frame
--------------------------------------------------------------------------------------------------------------------
176 111 House tool & lube room, bent skid, with misc parts, ND24287 welded,
40' 5"L X 107"H X 7' 10"W
--------------------------------------------------------------------------------------------------------------------
177 112 Fuel Tank goes on top of 111, welded 28404, stamped ND28438, tank
35' 2"L X 4'H X 7' 4"W, skid 38' 7"L X 49"H X 7' 4"W
--------------------------------------------------------------------------------------------------------------------
178 113 Pump National K500-A, 24'L X 8' 5"W X 128"T, 3' 7" wheel 16 groove
--------------------------------------------------------------------------------------------------------------------
179 114 Engines twin 6-71 Detroit w/ gear box 5118275, Ratio 1:77 to 1,
s/n HD9434, 4' X 8' skid
--------------------------------------------------------------------------------------------------------------------
180 115 Cat D353? W/ air clutch, 4' 1"W X 14' 6"L Core use only??
--------------------------------------------------------------------------------------------------------------------
181 116 Pump National K500-A, 25' 6"'L X 7' 8"W X 9'H, w/o damper, 3' 7"
wheel 16 groove
--------------------------------------------------------------------------------------------------------------------
182 116A Hydril Damper
--------------------------------------------------------------------------------------------------------------------
183 117 Pump, Oilwell 214, s/n 10940, 7' 8"W X 25' 3"L X 98"H
--------------------------------------------------------------------------------------------------------------------
184 118 Tool House w/ flaps, HSE 7' 6"W X 14'L, skid 93"W X 97"H, flaps 2'
X 2'6"
--------------------------------------------------------------------------------------------------------------------
185 119 Tool House w/ Quincy A/C 325, s/n 6065628, skid 93W X 108"H X 36'
2"L, skid 40'L
--------------------------------------------------------------------------------------------------------------------
186 119A A/C
--------------------------------------------------------------------------------------------------------------------
187 120 Pipe Tub 8'W X 36'L
--------------------------------------------------------------------------------------------------------------------
188 121 Pipe Tub made of D.P.7' 7" X 35' 2"L
--------------------------------------------------------------------------------------------------------------------
189 122 Val-Con, model 30-1P30-U1R-1-1, s/n 8061, 5' 6"W X 8'L X 7'H with
control box
--------------------------------------------------------------------------------------------------------------------
190 123 Hydromatic, s/n 0-00, xxxxx xxx xxxxxxx XX00000X, bearing end
caps missing on both ends
--------------------------------------------------------------------------------------------------------------------
191 124 Spacer Spool 10" X 3000
--------------------------------------------------------------------------------------------------------------------
192 125 Mud Cross 13"
--------------------------------------------------------------------------------------------------------------------
193 126 Change-over 3000 X 5000
--------------------------------------------------------------------------------------------------------------------
194 127 Air Bowl 10" X 3000
--------------------------------------------------------------------------------------------------------------------
195 128 Cathead Xxxxxx Model 16 LB A, s/n 3024
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
XXX XXX
XXXXX # XXXX # XXX # DESCRIPTION
--------------------------------------------------------------------------------------------------------------------
196 129 Stir gear box Chemineer, 15hp, model 4TA-15, s/n 0-00000-00
--------------------------------------------------------------------------------------------------------------------
197 129A Stir gear box Chemineer, s/n ?
--------------------------------------------------------------------------------------------------------------------
198 130 Matthey Wireline Unit, model 15 HRC, s/n 2328
--------------------------------------------------------------------------------------------------------------------
199 131 Gen Skid House framing, 9' 10"W X 134"H X 26' 9"L
--------------------------------------------------------------------------------------------------------------------
200 132 Pipe Rack
--------------------------------------------------------------------------------------------------------------------
201 133 Pipe Rack
--------------------------------------------------------------------------------------------------------------------
202 134&135 Pipe Rack
--------------------------------------------------------------------------------------------------------------------
203 136 Pipe Rack
--------------------------------------------------------------------------------------------------------------------
204 137 Pipe Rack
--------------------------------------------------------------------------------------------------------------------
205 138 Matt Board, qty 4 pcs, 10' X 10' X 7"
--------------------------------------------------------------------------------------------------------------------
206 139 Load Ramp, 8' 6"W X 8' 6"H X 29' 6"L
--------------------------------------------------------------------------------------------------------------------
207 140 Misc items, frogs, guards, mud pump parts, table bushing, rat hole
digger, hose
--------------------------------------------------------------------------------------------------------------------
250 Radiators new from Fuzzy Rad Co. Borger Tx, model FZ43-2401, s/n
1356 & 1357, dated 7-21-05, PO S&W
--------------------------------------------------------------------------------------------------------------------
255 Xxxxxx, with Xxxxx, Xxxx says inspected, 40' 6" overall, 4 3/4 hex,
--------------------------------------------------------------------------------------------------------------------
98 Rig 3 Drill Line being installed, no photo
--------------------------------------------------------------------------------------------------------------------
110 & 111 71 Rig 3 Dog House 7'6"W X 8'3"H X 20"L house, 26'10" skid, hand rail may
not be OSHA, step maybe light
--------------------------------------------------------------------------------------------------------------------
118 & 119 77 Rig 3 Water Tank, open top, inside coated tank 48'L X 8'H X 10'W, skid
12'L, porch 9', skid 51'L X 9'4"H X 10W
--------------------------------------------------------------------------------------------------------------------
120 & 121 78 Rig 3 Xxx Xxxxx, 000"X X 26'8"L X 10W, will have 2 D353 Cats w/ 325
gens, from S&W OK City
--------------------------------------------------------------------------------------------------------------------
92 & 93 66 Rig 3 Pit, no I Beam skid, slant floor, floor replated, pit 9' 2"W X 64"H
X 34'6"L, 9'4" porch, 46' overall, 2 yr. Life?
--------------------------------------------------------------------------------------------------------------------
92A 66A Rig 3 Welded beams line up under pumps. Could flex and bend.
--------------------------------------------------------------------------------------------------------------------
94 & 95 66B Rig 3 Pumps, MCM, s/n 8900 & 9899, 5X6, 75 hp, plumbing & wiring
--------------------------------------------------------------------------------------------------------------------
99 & 100 68A Rig 3 Cat D 398 no s/n's, S&W Okla City, air clutch 28CB525
--------------------------------------------------------------------------------------------------------------------
18 7 Rig 3 Steps, 22'H X 43"W, outside measurement
--------------------------------------------------------------------------------------------------------------------
29 15 Rig 3 Lot Hose & Belts, 2 of 3.5 NRP 5000 psi GR D 10000, 2 of R8VK2650
12 groove, 2 of R8V2650
--------------------------------------------------------------------------------------------------------------------
51 31 Rig 3 Choke Manifold Main Valve 697-333-10-1, 3000lb, need 2 more valves,
skid 7'W X 11' 8"L
--------------------------------------------------------------------------------------------------------------------
53 33 Rig 3 Steps, & V door assm, 88"W X 25' 8"L, steps not complete & heavy
enough quality, hand rail bent
--------------------------------------------------------------------------------------------------------------------
55 35 Rig 3 MCM Pump, New, s/n 9885, 2X3, series 250, 20 hp, 3 phase, O Drill
Co.
--------------------------------------------------------------------------------------------------------------------
56 36 Rig 3 MCM Pump, New, s/n 9875, 2X3, series 250, 20 hp, 3 phase, O Drill
Co.
--------------------------------------------------------------------------------------------------------------------
62 44 Rig 3 Air Winch, GFS1029991R, AT04 0046600-6, OilWorks Odessa
--------------------------------------------------------------------------------------------------------------------
63 45 Rig 3 Desander, cones inside, MCM Odrill
--------------------------------------------------------------------------------------------------------------------
74 56 Rig 3 Desilter New
--------------------------------------------------------------------------------------------------------------------
91 65 Rig 3 Pit, no I Beam skid, slant floor, Pitted Bad on inside, pit 9' 2"W X
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
XXX XXX
XXXXX # XXXX # XXX # XXXXXXXXXXX
--------------------------------------------------------------------------------------------------------------------
6'H X 35'L, 10' porch, 46' overall, 2 yr. Life?
--------------------------------------------------------------------------------------------------------------------
96 67 Rig 3 Pump, Bomco F800, s/n 403-2005, dated 2005-1,
--------------------------------------------------------------------------------------------------------------------
97 67A Rig 3 MCM Charge Pump 6X8 s/n 9938, washer pump MCM 3 hp 1X1.5 s/n 2034,
w/ damper, Xxxxxxxx says change skid
--------------------------------------------------------------------------------------------------------------------
98 68 Rig 3 Pump, Bomco F800, s/n A14-2005, date 05-01, MCM charge pump 6X8 s/n
9970 washer pump 1X1.5 MCM 3 hp
--------------------------------------------------------------------------------------------------------------------
101 69 Rig 3 Sub & 3 sets of steps
--------------------------------------------------------------------------------------------------------------------
102 69A Rig 3 Sub 27'W X 48' 3"L X 15' 4"H
--------------------------------------------------------------------------------------------------------------------
103 69B Rig 3 Sub tool rooms
--------------------------------------------------------------------------------------------------------------------
104 69C Rig 3 Sub MCM Wash Down 2X3, s/n 9894, 20hp
--------------------------------------------------------------------------------------------------------------------
105 69D Rig 3 Change House
--------------------------------------------------------------------------------------------------------------------
106 69E Rig 3 Tool House, Statel-Lite 307-237-9391 partly wired
--------------------------------------------------------------------------------------------------------------------
107 70 Rig 3 Draw Works U-15, s/n 285
--------------------------------------------------------------------------------------------------------------------
108 70A Rig 3 Compound w/o engines, will have two Cat D353's
--------------------------------------------------------------------------------------------------------------------
109 70B Rig 3 New Valves
--------------------------------------------------------------------------------------------------------------------
113 72 Rig 3 Cat Walk 2 piece 48W X 42"H X 24'L
--------------------------------------------------------------------------------------------------------------------
114 73 Rig 3 Xxxx Blocks
--------------------------------------------------------------------------------------------------------------------
115 74 Rig 3 Mast with lights
--------------------------------------------------------------------------------------------------------------------
116 75 Rig 3 Drill Line Spool Holder
--------------------------------------------------------------------------------------------------------------------
117 76 Rig 3 Drill Line Spool Holder Blue
--------------------------------------------------------------------------------------------------------------------
122 Rig 3 View
--------------------------------------------------------------------------------------------------------------------
154 97 Rig 3 Engine Cat D398 for F800 Pump, no tag or s/n #
--------------------------------------------------------------------------------------------------------------------
157 101 Rig 3 Table, National C-205, 20 1/2" with bushing & double sprocket,
--------------------------------------------------------------------------------------------------------------------
30, 31 16 Rig 4 Mud Pit tank 8'H X 10W X 31'11"L, Skid 9"H X 10W X 42'L w/ 8'
Porch, slant floor rusted, gates stuck, walk one side
--------------------------------------------------------------------------------------------------------------------
32, 33 17 Rig 4 Mud Pit tank 8'H X 10W X 40L", Skid 9"H X 10W X 42'6"L w/ 8' V
Bottom no walkway
--------------------------------------------------------------------------------------------------------------------
36, 37 19 Rig 4 Mud Pit V Bottom, Tank 79"H X 18" wall on slant X length ? Skid
104"H X 10'W, Porch 10' X 10' work in process
--------------------------------------------------------------------------------------------------------------------
39, 40 Rig 4 Total Rig Scene
--------------------------------------------------------------------------------------------------------------------
7 3 Rig 4 Panels in a Skidded Rack, 23 Pcs, Rack is 5"6"H X 7' 10"W X 30' 4"L
--------------------------------------------------------------------------------------------------------------------
8 4 Rig 4 Fuel Tank, total skid = 10'W X 9' 3"H X 44' 6"L, tank = 10'W X 8'H
X L
--------------------------------------------------------------------------------------------------------------------
9 4 Rig 4 Fuel Tank double B/S #3 pumps & water separator, rusted cond.,
Square D starters size 0&1, type S, class 8536
--------------------------------------------------------------------------------------------------------------------
10 4 Rig 4 Fuel Tank, rear with lube storage
--------------------------------------------------------------------------------------------------------------------
21 10 Rig 4 Stair Landing, 6' X 6' X 12H
--------------------------------------------------------------------------------------------------------------------
22 10A Rig 4 Stair Landing, 6' X 6' X 12' 10"H
--------------------------------------------------------------------------------------------------------------------
23 10B Rig 4 Stair Landing, 5'8" X 5' X 9'
--------------------------------------------------------------------------------------------------------------------
24 11 Rig 4 Matting Board Frames, bad wood, 8'W X 15' 2"L X7"H, 9 Pcs. 00
xxxx 00, X,X,X,X,X,X,X,X.
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
XXX XXX
XXXXX # XXXX # XXX # DESCRIPTION
--------------------------------------------------------------------------------------------------------------------
25 11 Rig 4 Matting Board Frames, bad wood, 6'W X 11'1"L X7"H, 2 Pcs.
--------------------------------------------------------------------------------------------------------------------
27 13 Rig 4 Xxxxxxx Part
--------------------------------------------------------------------------------------------------------------------
28 14 Rig 4 Slide
--------------------------------------------------------------------------------------------------------------------
38 19A Rig 4 middle beam rusted, replated one side, floor being replated * this
may need done on #16
--------------------------------------------------------------------------------------------------------------------
41 21 Rig 4 Sub Structure 10 Pcs, s/n 781027, 600,000 58'10"L X 28'W X 25'T,
no floor in lower boxes, use matt boards?
--------------------------------------------------------------------------------------------------------------------
42 22 Rig 4 Dog House half round top, to high to measure, appx 32' skid, 30'
house
--------------------------------------------------------------------------------------------------------------------
43 23 Rig 4 Dog House flat top, to high to measure, appx 32' skid, 30' house
--------------------------------------------------------------------------------------------------------------------
44 24 Rig 4 Rotary Clutch Beam
--------------------------------------------------------------------------------------------------------------------
45 25 Rig 4 Misc Guards
--------------------------------------------------------------------------------------------------------------------
46 26 Rig 4 Xxxxxx Xxxxxx Anchor in Sub #'s as follows 121, 2501, 100,000
150,000 3-973-435
--------------------------------------------------------------------------------------------------------------------
47 27 Rig 4 Tool Storage Left box Sub
--------------------------------------------------------------------------------------------------------------------
48 28 Rig 4 Tool Storage Right box Sub
--------------------------------------------------------------------------------------------------------------------
49 29 Rig 4 Gardener Denver PZ11, w/ motor mount, stamped 743851, 8'W X
18'8"L?? 202PZL029, 18 316841, 94, API 7
--------------------------------------------------------------------------------------------------------------------
50 30 Rig 4 Gardener Denver PZ11, w/o motor mount, no s/n #
--------------------------------------------------------------------------------------------------------------------
150 93 Rig 4 Hydromatic s/n 49105? Stamped 30325001, casting PC56090-1R
--------------------------------------------------------------------------------------------------------------------
152 95 Rig 4 Hydril BOP, GK 12-900, the Double is still at Houston
--------------------------------------------------------------------------------------------------------------------
153 96 Rig 4 Block and Hook, National 500 ton, 650G500, s/n 4795N, Hook s/n
4795N, 1 3/8?, looks new, loch assm rusted stuck
--------------------------------------------------------------------------------------------------------------------
156 100 Rig 4 V-Door and steps USED bowed 5' X 31' 1"
--------------------------------------------------------------------------------------------------------------------
161 104 Rig 4 Center Cat Walk 24' 1" X 4'W X 42"T
--------------------------------------------------------------------------------------------------------------------
164 107 Rig 4 Raise Line 1 1/2"?
--------------------------------------------------------------------------------------------------------------------
68 50 Rig 4 or 6 Raise Line
--------------------------------------------------------------------------------------------------------------------
123 & 124 79 Rig 5 Dog House, crimped wall, hse 92"W X 36'L w/ 5' porch, skid skid
92"W X 42' 1"L X 128 "H, new elect started
--------------------------------------------------------------------------------------------------------------------
77 & 78 59 Rig 5 Pit, V bottom, tank 46'L X 90"H X 10W, skid 49" X 9'9"H X 10W,
expanded metal 2/3 walkway, hand rails
--------------------------------------------------------------------------------------------------------------------
81A 61A Rig 5 Pumps from Bridges Equip, 6 mo warranty, not rebuilt, Mechanic
checked out
--------------------------------------------------------------------------------------------------------------------
83 & 84 63 Rig 5 Sub 4 pc. Box on box 26' 2"W X 40' 2"L X 19'H with 2 locker areas,
M-D anchor (sensor missing), photo85,86,87
--------------------------------------------------------------------------------------------------------------------
85 & 86 63 Rig 5 Tool Room and Parts
--------------------------------------------------------------------------------------------------------------------
88 & 89 64 Rig 5 Skytop N95, s/n 95-0001 on control panel, Xxxxxx 37AH67S, brake
bands not centered on rims,
--------------------------------------------------------------------------------------------------------------------
69 51 Rig 5 Rotary Table, C-Emsco T2750, s/n 3079, 27 1/2" X 54" w/ bushings &
26 tooth sprocket, don't know if rebuilt
--------------------------------------------------------------------------------------------------------------------
75 57 Rig 5 Valves & shed top
--------------------------------------------------------------------------------------------------------------------
76 58 & 58A Rig 5 Skid with New Pumps, MCM 5" X 6", P3604828-2, s/n 9898 & 9897, 75
hp, 3 phase, skid 97"W X 160"L
--------------------------------------------------------------------------------------------------------------------
81 61 Rig 5 Mud Pump, Ideco Dresser T1300, s/n 160, skid 6'W X 19'1"L, no
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
XXX XXX
XXXXX # XXXX # XXX # DESCRIPTION
--------------------------------------------------------------------------------------------------------------------
bull wheel, damper, 6" liner on skid
--------------------------------------------------------------------------------------------------------------------
82 62 Rig 5 Mud Pump, Ideco IRI, T1300, s/n blank, skid 9'W X 19'1"L, no bull
wheel, damper, No oil check plug possible water
--------------------------------------------------------------------------------------------------------------------
87 63 Rig 5 Xxxxxx Xxxxxx Anchor in Sub w/o sensor
--------------------------------------------------------------------------------------------------------------------
90 64A Rig 5 cracks and holes on control panel, rusted gauges, rebuilt by Xxx
Xxxxx
--------------------------------------------------------------------------------------------------------------------
151 94 Rig 5 Hydromatic s/n 494761? Maybe 19613X, casting PC56090-1L
--------------------------------------------------------------------------------------------------------------------
79 & 80 60 Rig 5 Pit, V bottom, skid welded, tank 40'L X 8'H X 10'W, skid 43' 8"L
X 9'9"H X 10'W, bar grate walk
--------------------------------------------------------------------------------------------------------------------
125 & 126 80 Rig 6 Will have Ideco 525 D/W, Sub enclosed wired & plumbed each
box 7'W X 47' 8"L X 11'H, 25 total width, shows dirt or rust in
some paint
--------------------------------------------------------------------------------------------------------------------
127 & 128 80A Rig 6 Sub w/ Parts houses built in, elect & plumbing started
--------------------------------------------------------------------------------------------------------------------
130A 81A Rig 6 Mast on racks w/o support show sag or bow ??
--------------------------------------------------------------------------------------------------------------------
158 & 159 103 Rig 6 Compound w/o engines,
--------------------------------------------------------------------------------------------------------------------
13 6 Rig 6 Gen House some lights and wiring, 3 rooms
--------------------------------------------------------------------------------------------------------------------
14 6 Rig 6 Gen House change room with lockers w/o doors
--------------------------------------------------------------------------------------------------------------------
15 6 Rig 6 Gen House tool room with work bench and storage, electric switch &
breaker boxes
--------------------------------------------------------------------------------------------------------------------
16 6 Rig 6 Gen House, Gen Area
--------------------------------------------------------------------------------------------------------------------
17 6 Rig 6 Gen House rear view with connections
--------------------------------------------------------------------------------------------------------------------
129 80B Rig 6 Light
--------------------------------------------------------------------------------------------------------------------
130 81 Rig 6 Mast shows (MFG 11Drilling Co welded) s/n T1710, Cody says 131'H X
18' 6" leg spread,
--------------------------------------------------------------------------------------------------------------------
132 81B Rig 6 Mast Pin area on Thursday, being replaced on Friday
--------------------------------------------------------------------------------------------------------------------
133 81C Rig 6 Mast painted area makes it look bowed, some new lighting
--------------------------------------------------------------------------------------------------------------------
134 81D Rig 6 Mast Crown less sheves, fast line has side play
--------------------------------------------------------------------------------------------------------------------
135 82 Rig 6 Pump, F800 s/n A05-05, Dated 05-03, D398 at TPS Company, skid 8'W
engine area X 13'W X 30' 4"L
--------------------------------------------------------------------------------------------------------------------
136 82A Rig 6 Charge Pump MCM 6X8", s/n 9971, no washer pump yet,
--------------------------------------------------------------------------------------------------------------------
137 83 Rig 6 Pump, F800 s/n A02-2005, Dated 2005-1, D398 at TPS Company, skid
8'W engine area X 13'W X 30' 4"L
--------------------------------------------------------------------------------------------------------------------
138 83A Rig 6 Charge Pump MCM 6X8", s/n 9886, no washer pump yet,
--------------------------------------------------------------------------------------------------------------------
155 99 Rig 6 V-Door and steps NEW 88" X 20' 2"
--------------------------------------------------------------------------------------------------------------------
54 34 Rig 6 Xxxxxxx Stand, bad steps, 8' X 6'7" X ?? High, to high to measure
--------------------------------------------------------------------------------------------------------------------
112 71A Rig3 Step Photo
--------------------------------------------------------------------------------------------------------------------
218 Rig 4 Mast Stamped 1N276, 1P276, 2N276 on flats, 142' to floor, 8 X 8 X 1
1/8", million plus, section missing $53,000. Xxxxx Xxxxxxxxxx
--------------------------------------------------------------------------------------------------------------------
218A Had Mast for 10 years. Had 110 DW since 1988 or 1989, has electro
brake
--------------------------------------------------------------------------------------------------------------------
222 Rig 5 Mast, no stamping numbers found, approximately 131' ?
--------------------------------------------------------------------------------------------------------------------
230 Rig 3 Mast, measured from the ground approx 128' ?? Might be 131' w/
beef-up kit ?? Stamped s/n T2198 ??
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
XXX XXX
XXXXX # XXXX # XXX # DESCRIPTION
--------------------------------------------------------------------------------------------------------------------
239 Rig 6 Mast, measured 129', Crown Sheves gone, at Cliff Cunninghams
--------------------------------------------------------------------------------------------------------------------
Xxx Xxxx rebuilder of N-95
--------------------------------------------------------------------------------------------------------------------
Xxxxx Xxxxxxxxxx Mast, Block and Hook Sales, also Rig4,
000-000-0000
--------------------------------------------------------------------------------------------------------------------
S & W Power Systems, Oklahoma City, Engines
--------------------------------------------------------------------------------------------------------------------
Inland Machine rebuilding Ideco 525
--------------------------------------------------------------------------------------------------------------------
Santo's is Mast repair Contractor
--------------------------------------------------------------------------------------------------------------------
Cody says D398 s/n's are 66B8327 and 35Z00744 ??
--------------------------------------------------------------------------------------------------------------------
Various new Steps
--------------------------------------------------------------------------------------------------------------------
Six(6)Float Trailers
--------------------------------------------------------------------------------------------------------------------
Miscellaneous new steel building material
--------------------------------------------------------------------------------------------------------------------
Raising lines for National 110
--------------------------------------------------------------------------------------------------------------------
All items relating to rotary drilling rigs and/or rotary
drilling rig operations that are currently being held at the
primary yard of C and L Services, LP located in Cleburne, Texas, as
well as all items associated with rotary drilling rigs currently
being held at the secondary yard of C and L Services, LP known as
the Hospital Yard located in Cleburne, Texas
--------------------------------------------------------------------------------------------------------------------
Other Assets Pending Delivery to C and L Facility (as of August 11, 2005)
-----------------------------------------------------------------------
o Drawworks for Ideco 525 in Oklahoma being rebuilt at Inland
o Two Cat 398 Engines, Parts paid for in Houston - Noted for Rig #6 pumps
o Three Engine Compound, in Kilgore, TX - Noted for Rig #4
o Skytop 9SX Swivel, Rebuilt in OKC - Noted for Rig #4
o Oilwell 27.5" Rotary Table, in Houston - Noted for Rig #4
o Tool House in Witcha Falls - Unassigned
o Cont. Emsco Block and Hook, in Odessa - Noted for Rig #5
o 13 5/8" Double Ram BOP, in Houston - Noted for Rig #4
o 5 1/4" Xxxxx with Varco bushings, rebuilt, in Kilgore - Noted for Rig #4
o One Cat 353 Engine - Noted for Rig #3
o Two new pit agitators - Unassigned
o New Hydril Pump seat and liner puller - unassigned
o Two Kato 300kw Generator sets with D353 Cat engines, at S&W in OKC - Noted
for Rig #3
o Crown Section for Ideco 525 Xxxxxxx
o Quincy 390 air compressor at Oilworks shop for Rig #3
Exhibit A
Form of Xxxx of Sale
GENERAL XXXX OF SALE AND ASSIGNMENT
-----------------------------------
GENERAL XXXX OF SALE AND ASSIGNMENT, effective as of 12:01
a.m. on August 12, 2005, from C AND L SERVICES, LP, a Texas limited partnership
("Seller"), to UNION DRILLING TEXAS, LP, a Texas limited partnership ("Buyer").
RECITALS
--------
1. Seller is executing and delivering this General Xxxx of Sale and
Assignment to Buyer for the purpose of selling, assigning, transferring, and
delivering to, and vesting in, the Buyer all right, title and interest of the
Seller in and to the "Assets" (as defined in the Asset Purchase Agreement dated
as of the date hereof, by and between Seller and Buyer).
AGREEMENT
---------
Section 1. In consideration of the premises and of other good and
valuable consideration, receipt of which is hereby acknowledged, Seller by these
presents does sell, assign, transfer, and deliver to, and vest in Buyer, its
successors and assigns forever, good and marketable title and all of Seller's
right, title, and interest, legal and equitable, in and to each and every one of
the Assets.
TO HAVE AND TO HOLD all of the Assets unto Buyer, its successors and
assigns forever; and Seller does for itself, and its successors and assigns,
covenant and agree with Buyer to WARRANT AND DEFEND the title of the aforesaid
Assets against all and every person and persons whomsoever.
Section 2. Seller hereby constitutes and appoints Buyer, its
successors and assigns the true and lawful attorney and attorneys of Seller with
full power of substitution in its
name and stead, but on behalf and for the benefit of Buyer, its successors and
assigns, to demand and receive any and all of the Assets sold, transferred and
assigned to Buyer this instrument and to give receipts and releases for and in
respect of the same or any part thereof, to endorse any claim or right of any
kind in respect thereof and to do all acts and things in relation to the Assets,
which Buyer, its successors and assigns may deem desirable, Seller hereby
declaring that the foregoing powers are coupled with an interest and are not
revocable and shall not be revoked by Seller or its successors or assigns for
any reason whatsoever.
Section 3. Seller, for itself, its successors and assigns, hereby
covenants and agrees that, at any time and from time to time forthwith upon the
written request of Buyer, Seller will, at its expense, do, execute, acknowledge,
and deliver or cause to be done, executed, acknowledged, or delivered, all and
every such further acts, deeds, assignments, transfers, conveyances, powers of
attorney, and assurances as may be reasonably required by Buyer in order to
sell, assign, transfer, and convey to, and vest in, Buyer, its successors and
assigns, or to aid and assist Buyer in reducing to possession and use any or all
of the Assets assigned to Buyer.
Section 4. Nothing herein expressed or implied is intended or shall
be construed to confer upon or give to any person or entity, other than Seller
and Buyer, and their respective successors and assigns, any rights or remedies
by reason of this General Xxxx of Sale and Assignment.
Section 5. This General Xxxx of Sale and Assignment is executed by,
and shall be binding upon, Seller, its successors and assigns, for the uses and
purposes above set forth and referred to, as of the effective date thereof.
IN WITNESS WHEREOF, Seller has caused this General Xxxx of Sale and
Assignment to be signed as of the date set forth above.
C AND L SERVICES, LP
By: /s/XXXX XXXXX
---------------------------------
Name: Xxxx Xxxxx
Title: President
