During the month, Basic acquired two barge-mounted workover rigs, added two newbuild rigs and retired two rigs, increasing its well servicing rig count to 367 as of January 31, 2007. Rig hours for the month of January 2007 were 71,200 producing a rig utilization rate of 76.7%, a decrease from 86.6% and 85.3% in the same month in 2006 and prior month, respectively.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "Our rig utilization in January of 2007 was impacted by severe weather particularly in our Permian Basin and Mid-Continent regions where more than 60% of our well servicing rigs are located. We estimate that we lost 4,000 to 5,000 rig hours over a two week period due to snow and ice, which made roads impassable for several days at a time. The weather impact in January 2007 accounted for the decline in the rig utilization rate compared to December 2006 and about half of the decline from the historically high utilization rate achieved in January of 2006, when we benefited from extremely mild weather. The remainder of the year-over-year decline is attributable to moderating oil and gas prices and a return to more typical seasonal first quarter activity."
Basic also increased its fluid service truck fleet by a net of six trucks, bringing its total to 652 trucks as of January 31, 2007.
OPERATING DATA Month ended January 31, December 31, 2007 2006 2006 Number of weekdays in period 23 22 21 Number of well servicing rigs: (1) Weighted average for period 367 324 365 End of period 367 324 365 Rig hours (000s) 71.2 66.9 69.3 Rig utilization rate (2) 76.7% 85.3% 82.2% Number of fluid service trucks: Weighted average for period 649 479 643 End of period 652 538 646 (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. The January 2006 utilization has been revised from what was previously reported to conform to this calculation.
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. 432-620-5510 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.