MIDLAND, Texas, March 13 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of February 2007.
During the month, Basic added four newbuild rigs and retired three rigs, increasing its well servicing rig count to 368 as of February 28, 2007. Rig hours for the month of February 2007 were 67,800 producing a rig utilization rate of 83.9%, an increase from 76.7% in the prior month.
Basic increased its average rig fleet by 41 rigs or 12% compared to February 2006 with 32 newbuild rigs and 21 rigs added from acquisitions offset by 12 retirements. Rig hours in February 2007 increased by 2% over the prior year with utilization declining from the historically high rate of 92.0% recorded in February 2006.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "Our rig utilization in February of 2007 improved from the prior month as we benefited from better weather conditions. First quarter 2007 rig utilization remains below the same period in 2006 as oil and gas prices have moderated somewhat and we experience more typical seasonal first quarter activity levels.
"The flow of new rigs into our fleet and the moderation in utilization has allowed us to replace some of the oldest rigs we have been keeping in the field during the exceptionally strong market conditions experienced over the last several years. Two of the three rigs retired in February were 1969 year model rigs and the third was a 1977 model. Replacement parts are difficult to obtain for these older rigs and they become increasingly expensive to keep in the field. The overall efficiency of our fleet is being enhanced as we upgrade and expand our fleet with our newbuild rig program."
Basic also increased its fluid service truck fleet by a net of three trucks, bringing its total to 655 trucks as of February 28, 2007.
OPERATING DATA Month ended February 28, January 31, 2007 2006 2007 Number of weekdays in period 20 20 23 Number of well servicing rigs:(1) Weighted average for period 367 326 367 End of period 368 327 367 Rig hours (000s) 67.8 66.0 71.2 Rig utilization rate(2) 83.9% 92.0% 76.7% Number of fluid service trucks: Weighted average for period 654 543 649 End of period 655 548 652 (1) Includes all rigs owned during periods presented and excludes rigs held for sale. (2) Rig utilization rate based on the weighted average number of rigs owned during the periods being reported, a 55-hour work week per rig and the number of weekdays in the periods being presented.
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 more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico and the Rocky Mountain States.
Additional information on Basic Energy Services is available on the Company's website at http://basicenergyservices.com .
Contacts: Alan Krenek, Chief Financial Officer
Basic Energy Services, Inc.
Jack Lascar/Sheila Stuewe
DRG&E / 713-529-6600
SOURCE Basic Energy Services, Inc.