Stoneham's operations are focused on the medium-deep drilling regions of the Western Canada Sedimentary Basin including the Foothills, Deep Basin, and Northern Plains. Our drilling rigs are designed to perform under extreme weather conditions because drilling operations in Canada run 24 hours a day, seven days a week, 365 days a year.

In 2008, we expanded of our operations into the United States, deploying two rigs to the Oklahoma's Anadarko Basin under a one-year contract with an existing client. This strategic move into the United States complements our Canadian operations, and we may deploy additional rigs to the U.S. in the future.

Our rigs are versatile and are fully capable of carrying out all types of drilling activity, including directional, horizontal, pad drilling, critical sour, under-balanced, and re-entry work. Our equipment is efficient and in high demand for multiple drilling disciplines, enabling us to compete effectively in a broad range of the total drilling market. Our competitive niche is in the medium-deep segment, drilling oil or natural gas wells to depths between 2,000 metres and 5,500 metres, where we have earned a reputation for operational excellence.

The age of our fleet ranges from brand new to seven years old. By design, all rigs share substantial similarities, which minimizes our need for spare equipment inventory and associated costs. New, well-maintained, efficient equipment and the streamlined design of our fleet enables us to consistently achieve top quartile rig utilization, which in turn helps to attract and retain qualified rig crews.

In 2007, we deployed five new rigs, and we completed our current rig construction program with the deployment of two additional rigs in the first quarter of 2008. This brings our modern, efficient fleet to 19 rigs.