Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment

v3.6.0.2
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
Property, Plant and Equipment     
Property, plant and equipment include the following:
 
 
 
December 31,
 
Useful Life
 
2016
 
2015
Land
 
 
$
2,010,555

 
$
2,010,555

Land improvements
15 years or life of lease
 
3,640,976

 
3,734,178

Buildings
15-20 years
 
42,191,745

 
41,218,431

Drilling rigs and related equipment
3-15 years
 
138,526,519

 
139,619,078

Pressure pumping equipment
3-5 years
 
96,500,592

 
93,956,896

Coil tubing equipment
4-10 years
 
28,019,217

 
30,190,216

Other machinery and equipment
7-20 years
 
35,548,357

 
37,829,135

Vehicles, trucks and trailers
5-10 years
 
29,964,148

 
29,542,164

Other property and equipment
3-12 years
 
11,416,334

 
11,169,306

 
 
 
387,818,443

 
389,269,959

Deposits on equipment and equipment in process of assembly
 
 
8,701,725

 
2,072,278

 
 
 
396,520,168

 
391,342,237

Less: accumulated depreciation
 
 
175,272,940

 
118,315,572

Property, plant and equipment, net
 
 
$
221,247,228

 
$
273,026,665



Depreciation expense was $60,839,858, $63,292,507 and $34,668,765, respectively, for the years ended December 31, 2016, 2015 and 2014.

Proceeds from customers for horizontal and directional drilling services equipment, damaged or lost down-hole are reflected in revenue with the carrying value of the related equipment charged to cost of service revenues and are reported as cash inflows from investing activities in the statement of cash flows. For the years ended December 31, 2016, 2015 and 2014, proceeds from the sale of equipment damaged or lost down-hole were $699,528, $404,383 and $698,860, respectively, and gain on sales of equipment damaged or lost down-hole were $447,477, $76,319 and $47,803, respectively.

Deposits on equipment and equipment in process of assembly represents deposits placed with vendors for equipment that is in the process of assembly and purchased equipment that is being outfitted for its intended use. The equipment is not yet placed in service.