Mr. Wehlmann: Grey Wolf is a land-based contract driller. We drill for oil and gas companies, E&P companies. We have 125 rigs in our fleet, we have 108 which are marketed here in the United States. We have five in Venezuela and we have 12 that are in inventory which are not capable of working right now without some extensive capital of 2.5 million to put the rigs back to work. We work for all sized companies from the smallest E&P independent up to the major independent, such as UPR, Enron, and then we work for majors as well, like Texaco and Conoco. So that's kind of a broad bush of our customer base.
TWST: What are your plans for expansion regarding the rigs?
Mr. Wehlmann: Right now, due to the nature of the industry we have no
plans for expansion. We are in a cost-cutting survivability mode, if you
will, like the whole industry is in. We've cut back, we have about 45 to
50 of our rigs working on a daily basis, compared to 100 plus a year
ago, so you can see the contraction of the industry since last year due
to the commodity prices that our customers are receiving. We have no
plans for expansion. What we're doing is conserving cash and just
weathering the storm, if you will.
Tickers included in this excerpt: GW
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