Question-and-Answer Session
Operator
(Operator Instructions) Your next question comes from Mike Drickamer - Morgan Keegan.
Mike Drickamer - Morgan Keegan
Dave, you talked about the strength in the Quail Tools division, can you remind me of the geographical revenue distribution there between how much you’re seeing onshore US versus offshore US?
David C. Mannon
We have about 25% in deepwater and about another 10% in the shelf and the remaining part is land throughout the United States. As you recall, Mike, we’ve got operations in Texas. We go up into the Woodford Shale up in Oklahoma, Arkansas, as well as the Rocky Mountains. And we’ve also opened, recently, a new shop up in the Williston Basin because there’s been a fairly heightened demand in that locale.
Mike Drickamer - Morgan Keegan
So, if we were to run this through for 2008, do you think the US onshore percentage would increase, as a percentage of the total, because of that strength is combined with decreasing Gulf of Mexico shelf?
David C. Mannon
Well, our shelf has been flat but what we have seen, in the near term, is our deepwater activity has increased. And so, I see that some expansion in deepwater but, yes, the majority of our revenue is still onshore North America.
Mike Drickamer - Morgan Keegan
Okay, did I just understand you say that Gulf of Mexico revenue has basically been flat? Do you think this is the bottom, as far as the Gulf of Mexico is concerned or is there still some weakness to come?
David C. Mannon
No, I don’t think there’s any weakness. There has been some press out here recently that the shelf has had some renewed demand and so we anticipate having some expansion in the shelf, but we see the majority of our expansion in the deepwater area offshore.
Mike Drickamer - Morgan Keegan
Okay, and then if I can touch on Saudi Arabia, for just a second. You talked about some costs you guys are having for renting some equipment in that. How much of that is included in your guidance that you just provided?
W. Kirk Brassfield
If you look at our numbers that we reported, we reported $27 million loss for the year. That’s, $9 million of that was operating loss related to the operations of the rig. The rest were the LDs and accruals.
But we would expect that going into 2008 that our loss would be slightly more than that. We do have a significant amount of rentals that were required due to the delay in receiving equipment but that will start falling off throughout the year and we do anticipate that we’ll be able to get rid of those with rentals by the May or June timeframe and that the loss would decrease from that point.
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