Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from line of John Fischer with the Raymond James. Please proceed.
John Fischer
Good morning guys.
Douglas Wall
Hey John, good morning.
John Fischer
Just couple of questions on your stack fleet. Could you guys give kind of ballpark number for how much cash to put into stacked rig for you to bring back in the service?
Douglas Wall
John that's – it really varies rig by rig we had look current 60 some stack rigs we have today, probably half of room could go back to work tomorrow with little or no capital expenditures. There is always some incremental operating expenditures that you face when you reactivate a rig. But in terms of capital about half of the stack fleet could go back to work with very little capital. The remaining rigs in that would -- could vary anywhere from as little as a $100,000 to upwards of a couple of million dollars before we put them back to work.
John Fischer
Okay. And I guess out of those 60 or so you could put out in near term. Are those waited on a certain region or certain debts capacity?
Douglas Wall
Well, probably that’s a good question. To give you some idea about 40 of those rigs are 750 horsepower rigs and under. About another 20 years so are 750 to a 1000. So that's the bulk of the stack rig, we do have four of them much larger rigs, the 2000 horsepower rig that are also stacked, but at the moment we think those will go back to work in the short term. In terms of regions, those – the smaller rigs are primarily in West Texas and the Rockies are probably the two big areas where those rigs reside.
John Fischer
Okay. And then I guess switching over to the margin side, cost increase a little bit more than we expected in second quarter, is that kind of begged into the $300 margin increase you guys see I n next quarter and is that like a labor issue, a fuel issue and something you kind of see going forward or is that one time deal?
John Vollmer
It is concerned in the comments of our margin going forward. Here there is couple of aspects toward the most significant of which is when are activating rigs you have to hire people and you have to prepare the rig before you have running revenue, and that was couple of hundred dollars of the increase and the cost per day in the second quarter, and with he activation rigs you can see in July we expect that to continue. There is also an increase in repair cost and cost of operating rigs in over the last 12 months.
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