the end of 2004, leaving 11 rigs in the fleet, which we believe are the newest and best available in their class in the Gulf of Mexico market. At year-end, three rigs were working on full day rates, two rigs were on standby rates, and six rigs were av ailable for work. 

## International Operations 

Significant improvements in V enezuela and Argentina, as well as operations in Hungary and E quatorial G uinea, helped bolster performance in 2004. On average, the Company had five more rigs working in 2004 than in 2003, r esulting in a 39 percent increase in revenue days. Including a $1.7 million insurance settlement, revenues increased 37 percent and operating profit climbed to $14 million compared with $5.1 million in 2003. Activity in Venezuela increased by over three rigs in 2004, and at the close of the year, nine rigs were running, with a tenth likely to commence in January 2005. After Venezuela, Ecuador is the second str ongest market for the Company in South America. At year-end, the Company had seven rigs operating there, and an eighth has a letter of intent to begin operations in December 2004. Colombia had very  weak activity in 2004, but at the close of the year, one rig had returned to work, and the Company received a letter of intent to return a second rig to work in December 2004. International operations in S outh America strengthened measurably in 2004, and with the r eturn of four older rigs to the U.S. and new contracts in Venezuela, E cuador, and Colombia, the Company anticipates that it will hav e 23 rigs out of 27 rigs working by the end of the first quarter of fiscal 2005. 

