Commenting on the new well service rig purchases, Dick Alario, Chairman and CEO, stated, "We continue to be very pleased with industry conditions and are excited about the opportunity to enhance our well service rig fleet. Recently, we have received requests from customers seeking long-term contracts for our well service rigs. We are currently evaluating these opportunities and anticipate that we may secure contracts for a portion of our new well service rigs before year-end."
Overall activity levels remain strong. The Company's operations in South Louisiana and the Gulf Coast of Texas did see some short-term disruptions due to Hurricane Rita. The Company incurred no major damage to any of its well service rigs; however, several company facilities, including those located in High Island, Texas and Lake Charles, Louisiana, did incur wind and flood damage, which the Company estimates the repair cost to be less than $100,000. The Company estimates that lost revenue associated with Hurricanes Rita and Katrina will be less than $2.5 million for the month of September. Additionally, the Company also incurred costs and expenses associated with non-productive time as a result of the storms.
Mr. Alario commented, "We were very fortunate to have not incurred any material damage to our equipment or facilities as a result of Hurricanes Rita and Katrina. Certain locations did incur short-term activity disruptions which affected our September monthly financial results; however, all of our impacted facilities are now operational."
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