Most of the charges are for reclassifying 16 land rigs in Latin America the company had been hoping to sell to continuing operations from discontinued operations.
Seven of the rigs are being reclassified because the company has decided to keep them and move then to drill in Mexico, where it has been awarded new land drilling contracts. A deal to buy the remaining rigs has fallen through, so they are being reclassified to continuing operations until another buyer emerges.
The rest of the one-time charge is for severance costs for former Chief Operating Officer Robert Nash, who left the company last month.
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