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Basic Energy Services Reports Selected Operating Data for January 2011

MIDLAND, Texas, Feb. 9, 2011 /PRNewswire via COMTEX/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of January 2011. Basic's well servicing rig count remained the same at 412 as of January 31, 2011. Well servicing rig hours for the month of January 2011 were 58,500 producing a rig utilization rate of 61%, an increase from 53% and 42% in December 2010 and January 2010, respectively.

Basic's fluid service truck count increased to 819 as of January 31, 2011, as a result of adding 22 trucks offset by three retirements. Fluid service truck hours for the month of January 2011 were 167,300, an increase from 159,300 and 146,500 in December 2010 and January 2010, respectively.

Drilling rig days for the month of January 2011 were 169, producing a rig utilization of 91%, a decrease from 97% in December 2010 and an increase from 72% for January 2010. During January 2011, one of Basic's drilling rigs was used to drill a new company-owned salt water disposal well. Including the 14 days for this project, drilling days for January 2011 were 183, producing a rig utilization rate of 98%.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "January activity levels continued the positive momentum experienced in the fourth quarter in all business segments. We were pleased with our customers' pace of activity, particularly in our oil-oriented markets, for this time of the year. That strong demand is supporting continued expansion of our fleet and is driving improved pricing within those oil markets.

"During the first week of February, the majority of our operations were severely disrupted by snow, ice or extremely cold weather and some of our operations saw weekly activity reduced by almost 90% compared to recent non-holiday weeks. Unusually severe weather is forecasted to continue through February. While we anticipate continued strong demand in most markets, it's unlikely that the activity lost to adverse weather will be made up during the remainder of the first quarter, which could result in lower revenue than indicated by our January activity levels.

"Demand for our services continues to be strong which supports our optimism for improving market conditions through the end of 2011."

OPERATING DATA






Month ended






January 31,


December 31,






2011


2010


2010












Number of weekdays in period


21


21


23












Number of well servicing rigs (1,3)








Weighted average for period


412


408


409


End of period



412


408


412


Rig hours (000s)



58.5


39.8


54.2


Rig utilization rate (2,3)



61%


42%


53%












Number of fluid service trucks (1)








Weighted average for period


810


790


779


End of period



819


88


800


Truck hours (000s)



167.3


146.5


159.3












Number of drilling rigs (1,3)








Weighted average for period


6


6


6


End of period



6


6


6


Drilling rig days



169


134


180


Drilling utilization (3)



91%


72%


97%












(1) Includes all rigs and trucks owned during periods presented and excludes rigs and trucks 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.

(3) Basic transferred three of its contract drilling rigs to the well servicing fleet at the end of December 2010. The weighted average number of rigs, number of rigs at the end of period and the rig utilization rate for January 2010 has been recalculated as if these three rigs had been reclassified for January 2010.


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 4,500 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas and the Rocky Mountain and Appalachian regions.

Additional information on Basic Energy Services is available on the Company's website at http://www.basicenergyservices.com/.

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) changes in demand for our services and any related material impact on our pricing and utilizations rates, (ii) Basic's ability to execute, manage and integrate acquisitions successfully and (iii) changes in our expenses, including labor or fuel costs and financing costs. Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of Basic's Form 10-K for the year ended December 31, 2009 and subsequent Form 10-Qs filed with the SEC. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee 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.


432-620-5510




Jack Lascar/Sheila Stuewe


DRG&L / 713-529-6600

SOURCE Basic Energy Services, Inc.

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