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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;&lt;b&gt;&lt;u&gt;Note

      15&lt;/u&gt;&lt;/b&gt; &lt;u&gt;&amp;#8212; &lt;b&gt;Standby Costs&lt;/b&gt;&lt;/u&gt;&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt; MARGIN: 0pt" id="PARA3086"&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;For

      the three and six months ended June 30, 2013, the Company

      incurred $2.3 million&amp;#160;and $3.4 million, respectively, in

      standby costs. During the three and six months ended June 30,

      2012, the Company incurred $1.4 million and $2.6 million,

      respectively, in standby costs. During the three months ended

      June 30, 2013, the Company had one rig, the Petrex-28 rig, on

      standby for approximately three months, compared with one

      rig, the Petrex-18 rig, on standby for approximately three

      months for the same period in 2012. During the six months

      ended June 30, 2013, the Company had one rig, the Petrex-10

      rig, partially or fully on standby for approximately two

      months and one rig, the Petrex-28 rig, partially or fully on

      standby for approximately five months, compared with one rig,

      the Petrex-18 rig, on standby for approximately six months

      for the same period in 2012.&lt;/font&gt;

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 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 225

 -SubTopic 10

 -Section S99

 -Paragraph 2

 -Subparagraph (SX 210.5-03.3,6,7,9)

 -URI http://asc.fasb.org/extlink&amp;oid=26872669&amp;loc=d3e20235-122688



Reference 2: http://www.xbrl.org/2003/role/presentationRef

 -Publisher SEC

 -Name Regulation S-X (SX)

 -Number 210

 -Section 03

 -Paragraph 3, 6, 7, 9

 -Article 5



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