Question-and-Answer Session
Operator
(Operator Instructions) Your first call comes from Pierre Connor – Capital One Southcoast.
Pierre Connor – Capital One Southcoast
First question on term contract terms, you mentioned that we've got the coverage in the term days but what kind of cancellation provisions are in there? I'm assuming that all your term contracts would be the same.
Hans Helmerich
Our term contracts we think are top rate and the best in the business and so that gives us a competitive advantage and what we can't do is get into a lot of detail on that, but it's basically a three year term, no cut, take or bake contract. In contrast to our peers, where we listen, it's hard for us to figure out exactly what they mean by a long term contract in terms of not only term but performance outs and other elements of their contracts. Ours are pretty straightforward and they're long term, and take or pay.
Pierre Connor – Capital One Southcoast
On the positive side, I wondered in you or John wanted to talk about some of your numbers exposure to some of the clays from what I hear would be relatively stable, potentially growing. How much can you tell us about Haynesville, Fayetteville, where you are in rig count, not disclosing customers for these new orders, but where the trend is and what you think your rig count is going to be in some of those clays.
John Lindsay
We see the Haynesville and the Barnett and the Bock all being really strong. They're strong today, they've been strong and we see that continuing. We have approximately 30 rigs in the Barnett. The Haynesville we're over 10 or so, or will be up to 10. We're not up to 10 right now. In the Bock we're around eight or nine rigs working.
All those are strong and of course most of those are term contract commitments. So we see that continuing to be strong for us.
Pierre Connor – Capital One Southcoast
When you mentioned the six to 15 potential releases, obviously they're not coming from those and they're not coming out of the Barnett particularly.
John Lindsay
We don't see, there's a little bit of softness in the Barnett, but I suspect that what rigs we have released in the Barnett will put those rigs back to work primarily because the performance of the rigs. Not all of the rigs in the Barnett are on term contracts. So there's always that exposure, but we've really been successful at being able to put those rigs to work.
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