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Divestitures
6 Months Ended
Jun. 30, 2015
Property, Plant and Equipment Impairment or Disposal [Abstract]  
Divestitures
DIVESTITURES

We sold non-core oil and natural gas assets, net of related expenses, for less than $0.1 million during the first six months of 2015, compared to $11.3 million during the first six months of 2014. Proceeds from those sales reduced the net book value of our full cost pool with no gain or loss recognized.

In December 2014, we removed from service 31 drilling rigs, some older top drives, and certain drill pipe no longer marketable under the current environment and based on estimated market value from third party assessments (Level 3 fair value measurement), we recorded a write-down of approximately $74.3 million pre-tax. During the first quarter of 2015, we sold one of these drilling rigs to an unaffiliated third party. The proceeds of this sale, less costs to sell, exceeded the $0.3 million net book value of the drilling rig resulting in a gain of $7,900. During the second quarter we decided to place the remaining 30 drilling rigs and most of the equipment for sale in an auction to be held during the third quarter. Any equipment not sold at the auction will be sold within the next twelve months. As a result, these assets have been classified as assets held for sale. Since December, the estimated fair value of the drilling rigs and other assets has declined based on the estimated market value from similar auctions. Based on these estimates, we recorded an additional write-down of approximately $8.3 million pre-tax during the second quarter. The proceeds from the sale of these assets, less costs to sell, is expected to be approximately $12.6 million.

During the first quarter of 2014, we sold four idle 3,000 horsepower drilling rigs to an unaffiliated third-party. The proceeds of this sale, less costs to sell, exceeded the $16.3 million net book value of the drilling rigs, both in the aggregate and for each drilling rig, resulting in a gain of $9.6 million.