Given the damage to the Halifax unit, are there any plans to replace that fifth jack-up slot for Saudi Aramco, and would it be a 116-C unit or maybe a Gorilla unit?

The company currently has no plans of sending a fifth jack-up to the Middle East on that original contract. The company has notified Saudi Aramco of that, and they''re in the process of re-tendering for some additional rigs. The leading edge rates are in the range of $25,000 to $27,000 a day. Long-term rates, for example a 3-year contract, would be possible to be $27,500 to $30,000 a day in the future. There is a lot of demand for the deeper rigs. The company is seeing that in South Louisiana, South Texas, East Texas.

Given that leading edge rates are $25,000 to $27,000, is it safe to assume that margins on these new contracts are around $10,000 a day?

They''re $10,000 to $15,000 a day depending on the rig.

What is the company estimating the cost to build the additional rigs for its fleet on the land side?

The cost of construction is around $12.5 million and those 3-year contracts basically have total payout – on the last four. The first few are 2-year contracts but majority are 3-year contracts with total payout.

The company has established a good backlog on the manufacturing side. Over what time do you think that backlog is going to translate into revenues and how would the margins change as you recognize the backlog?

Some of the backlog that the company has now will be delivered over the next 2 years, and some of those kits won''t be delivered until 24 months or so. As far as the margin is concerned, it''s mixed depending on what piece of equipment it is, but the average is 13%.

What''s the split between providing kits for jack-ups and for the other equipment in terms of dollar amount?

About $240 million – $250 million of that is marine and the rest of it would be front-end loader business.

What proportion of the company’s daily operating costs are insurance right now?

The operating cost is about $1,400 a day for insurance, or between 5% to 8%.

Is there any change to the budgeted costs for building the Tarzan IV or do you still expect it around the $100 million price range?

It''s around $125 million range.

Can you just update us on the timing of the land rig new builds.

The Rig 30 refurbishment will be finished by the end of November. The company expects to have one new rig by the end of December and then all the way through the first half of the fiscal year the company will have the rest of them up and operating.

Where are your average daily operating costs on a blended basis in the Gulf of Mexico for the jack-ups and onshore?

It’s $25,000 a day offshore on average, and onshore – it is $10,000 a day.

Is the $8.9 million on the hurricane losses for both events? Was the $5 million deductible a per-event and does that cover everything?

That covers everything, and that is for both events. The $5 million is an annual deductible.