MANAGEMENT’S DISCUSSION AND ANALYSIS are drilled, followed by one or more series of intermediate holes and a final series of main holes. This style of  drilling, as opposed to drilling each well from start to finish prior to moving, provides significant efficiency gains  when used in the appropriate applications.  The following table demonstrates the range of drilling capabilities for the Company’s fleet:  From time to time, the Company enters into drilling contracts for extended terms. At December 31, 2013,  AKITA had seven rigs with multi-year contracts that extend into 2014 or beyond. Of these contracts, five are  anticipated to expire in 2014, one in 2016 and one in 2018. Competition in the Canadian drilling industry is affected by the overall size of the drilling fleet, and the level of  customer demand. At December 31, 2013 there were 817 drilling rigs registered with the CAODC (December  31, 2012 – 838). AKITA’s drilling fleet of 38 rigs represented 4.6% of the total Canadian drilling fleet at  December 31, 2013 (December 31, 2012 – 4.7%). Drilling Fleet Summary at December 31, 2013 Conventional Rigs Pad Rigs Number of  Rigs Percent  Utilization Number of Rigs Percent  Utilization Singles 8 34.8% 0 N/A Doubles 7 20.1% 4 64.8% Triples 5 11.6% 14 73.5% Total 20 23.9% 18 71.9% 15 AKITA DRILLING LTD.  ANNUAL REPORT