Item 8.01 - Other Events

On August 28, 2009, we repaid in full all amounts outstanding under the Term Loan and Security Agreement dated April 21, 2006 (the "Term Loan"), among Desta Drilling, L.P. ("Desta LP") (formerly Larclay, L.P.), GE Business Financial Services, Inc. (successor to Merrill Lynch Capital), as Administrative Agent, and the Lenders named therein. We financed the repayment of amounts outstanding under the Term Loan with borrowings under our Amended and Restated Credit Agreement (the "Senior Credit Facility") dated May 21, 2004 (as amended), with JPMorgan Chase Bank, N.A. (successor by merger to Bank One, N.A. (Illinois)), as Administrative Agent, and the Lenders named therein. Pursuant to the terms of the Senior Credit Facility (1) Desta LP and its general partner, Desta Drilling GP, LLC ("Desta GP"), granted a security interest in substantially all of their respective assets as collateral under the Senior Credit Facility, (2) we and Desta GP pledged our equity interests in Desta LP to the Administrative Agent under the Senior Credit Facility and (3) Desta LP and Desta GP became Subsidiaries for all purposes of the Senior Credit Facility.