Basic Marine Services, Inc, a wholly owned subsidiary of Basic, recently entered into an agreement with Parker Drilling Offshore USA, LLC, a wholly owned subsidiary of Parker Drilling Company (NYSE: PKD) to purchase two barge- mounted workover rigs and related equipment. The rigs, which operate in the inland waters of Louisiana and Texas, will be integrated into Basic Marine Services' existing operations, doubling its barge-mounted workover rig fleet to a total of four.
In addition, Basic has entered into a letter of intent to purchase substantially all of the operating assets of Davis Tool Company, Inc. ("Davis") in Hobbs, New Mexico. Davis provides rental and fishing tool services in eastern New Mexico and will be integrated into Basic's Rental and Fishing Tool Division, increasing the company's presence in eastern New Mexico.
Both acquisitions are expected to be complete by late January 2007 and, combined, are projected to contribute quarterly revenues and EBITDA (earnings before interest, taxes, depreciation, and amortization) of approximately $3.9 million and $1.7 million, respectively.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The company employs more than 4,100 employees in approximately 100 service points throughout the major oil and gas producing 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 (i) Basic's ability to successfully execute, manage and integrate acquisitions, (ii) changes in demand for services and any related material impact on our pricing and utilizations rates and (iii) changes in our expenses, including labor or fuel costs. 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.
Alan Krenek, Chief Financial Officer of Basic Energy Services, Inc., 1-432-620-5510;
or Jack Lascar, or Sheila Stuewe, both of DRG&E, 1-713-529-6600, for Basic
Energy Services, Inc.