Chart #3: Operating & Maintenance (O&M) Costs Trends (Unaudited) Operating and maintenance costs represent all direct and indirect costs associated with the operation and maintenance of our drilling rigs. Operating and maintenance costs also includes all costs related to local and Unit offices as well as all costs related to operations support, engineering support, marketing and other similar costs. The principal elements of these costs are direct and indirect labor and benefits, repair and maintenance, contract preparation expenses, insurance, boat and helicopter rentals, professional and technical fees, freight costs, communications, customs duties, tool rentals and services, fuel and water, general taxes and licenses. Labor, repair and maintenance costs, insurance premiums, personal injury losses and drilling rig casualty losses represent the most significant components of our operating and maintenance costs O&M Costs * Includes the total amount of days a rig is deemed to be out of service. This relates to times when a rig is out of service due to shipyards, mobilization and short-term idle periods. Out of Service Days Denotes the total O&M costs while a rig is out of service based upon Out of Service Days, as defined below. Out of Service costs are the difference between total operating and maintenance costs and the In-Service Costs. Out of Service Denotes the total amount of days a rig is deemed to be in- service under contract operations. This excludes all out of service time relating to shipyards, mobilization and short-term out of contract periods but includes the operational downtime of in service rigs. The average number of days may also fluctuate from quarter to quarter as a result of rigs being reactivated, sold or stacked in the quarters. Rig Operating Days Denotes the total O&M costs of a rig while in service based upon the Rig Operating Days (excluding shorebase or common support costs), as defined below. Operating Rig All shorebase or common support costs such as on-shore offices, yards, pool equipment. Comprises of Integrated Services, Drilling Management Services, and Oil & Gas Properties. Support Costs Non Drilling Services and Oil & Gas Definitions $38 $44 $81 $185 $205 $250 $203 $111 $79 $86 $171 $145 $173 $195 $182 $156 $474 $488 $599 $762 $809 $867 $946 $843 $36 $44 $73 $65 $177 $114 $77 $61 $- $200 MM $400 MM $600 MM $800 MM $1,000 MM $1,200 MM $1,400 MM $1,600 MM Qtr2'07 Qtr3'07 Qtr4'07 Qtr1'08 Qtr2'08 Qtr3'08 Qtr4'08 Qtr1'09 Period Non Drilling Services and Oil & Gas $ Support Costs $ Operating Rig $ Out of Service $ $1,408 $1,426 $1,364 $1,157 $924 $662 $627 $1,171 | 
