MIDLAND, Texas, March 31 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE: BAS) (Basic) announced today that it acquired substantially all of the operating assets of Arkla Cementing, Inc. ("Arkla") of El Dorado, Arkansas, on March 27, 2006, for a total acquisition price of approximately $5 million in cash. Arkla provides cementing and acidizing services to the southern Arkansas and northern Louisiana oil and gas markets. Arkla's operating asset base includes six pressure pumping units and a full complement of support equipment.
Ken Huseman, Basic's President and CEO stated, "Arkla has the type of assets we find most attractive to acquire. John Coleman, the founder and owner of Arkla, has a long-standing reputation of providing exceptional service with good equipment and experienced people. The Arkla operation provides an excellent entry point for Basic to enter the Arkansas market. We will immediately integrate these assets into our existing Drilling and Completion Services segment to expand our pressure pumping capability to over 47,000 pump horsepower. The combined organization and fleet allows us to provide more effective coverage of the market throughout north and east Texas, northern Louisiana and eastern Oklahoma."
Basic Energy Services, with a fleet of more than 320 well servicing rigs, provides a range of well site services to oil and gas drilling and producing companies throughout the major oil and gas regions in Texas, Louisiana, Oklahoma, New Mexico and the Rocky Mountain States.
Safe Harbor Statement:
This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Basic has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including Basic's ability to successfully execute, manage and integrate acquisitions. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or that anticipated future results will be achieved. Basic assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by Basic, whether as a result of new information, future events, or otherwise.
Contacts: Alan Krenek, Chief Financial Officer
Basic Energy Services, Inc.
Jack Lascar/Sheila Stuewe
DRG&E / 713-529-6600
SOURCE Basic Energy Services, Inc.