54 AKITA DRILLING LTD.  ANNUAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Issued: • All issued shares are fully paid Each Class B Common share may be converted into one Class A Non-Voting share at the shareholder’s option. In the event that an offer to purchase Class B Common shares is made to all or substantially all holders of  Class B Common shares while at the same time an offer to purchase Class A Non-Voting shares on the same  terms and conditions is not made to the holders of Class A Non-Voting shares, and holders of more than 50  % of the Class B Common shares do not reject the offer in accordance with the terms of AKITA’s articles of  incorporation, then the holders of Class A Non-Voting shares will be entitled to exchange each Class A Non- Voting share for one Class B Common share for the purpose of depositing the resulting Class B Common share  pursuant to the terms of the takeover bid. The two classes of shares rank equally in all other respects. Sentgraf Enterprises Ltd., controlled by Ronald D. Southern, owns 1,428,790 Class B Common shares, which  at March 5, 2014 represented 86.4% of the Class B Common shares. Sentgraf Enterprises Ltd. also owns  4,506,277 Class A Non-Voting shares, which at March 5, 2014 represented 27.6% of the Class A Non-Voting  shares. The Company had an outstanding normal course issuer bid in place for the second half of 2013 and 2012  for the purchase of up to 3% of the outstanding Class A Non-Voting shares. In 2013, 9,065 shares were  repurchased and cancelled under normal course issuer bids at a cost of $138,000 of which $12,000 was  charged to share capital and $126,000 was charged to retained earnings. In 2012, 104,179 shares were  repurchased and cancelled under normal course issuer bids at a cost of $1,091,000 of which $140,000 was  charged to share capital and $951,000 was charged to retained earnings. The most recent offer will expire  on May 29, 2014. Revenue is comprised of the following: 14. Revenue Year Ended $Thousands  December 31 2013 December 31 2012 Contracting drilling services $ 166,459 $ 185,500 Rig construction 1,074 17,940 Total revenue $ 167,533  $ 203,440 (Number of Shares) Class A Non-Voting Class B Common Total Shares outstanding at December 31, 2011  16,376,421   1,653,884   18,030,305  Shares repurchased in 2012  (104,179)  -   (104,179) Stock options exercised in 2012 2,000  -  2,000 Shares outstanding at December 31, 2012  16,274,242   1,653,884   17,928,126  Shares repurchased in 2013  (9,065)  -   (9,065) Stock options exercised in 2013 54,200  -  54,200 Conversions Class B to Class A shares 100 (100)  - Shares outstanding at December 31, 2013  16,319,477   1,653,784   17,973,261