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Basic Energy Services Reports Selected Operating Data for July 2011

MIDLAND, Texas, Aug. 8, 2011 /PRNewswire via COMTEX/ --

Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of July 2011. Basic's well servicing rig count remained unchanged at 412 as of July 31, 2011. Well servicing rig hours for the month of July were 69,000 producing a rig utilization rate of 73%, a slight decrease from 74% in June 2011 and an increase from 50% in July 2010.

Basic's fluid service truck count as of July 31, 2011 increased to 871 as a result of adding 33 trucks from the Lone Star Anchor Trucks ("Lone Star") acquisition. Fluid service truck hours for the month were 183,400, an increase from 178,300 and 157,100 in June 2011 and July 2010, respectively.

Drilling rig days for the month were 279 producing a rig utilization of 90%, an increase from 85% in June 2011 and a decrease from 95% in July 2010.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "Demand for our services throughout our footprint continued to improve during the month, although the July 4th holiday temporarily reduced utilization in our well servicing segment. Excluding the holiday impact, well servicing utilization would have been two percentage points higher than our June 2011 utilization rate of 74%. Pricing continues to trend up driven by labor and other cost increases.

"After closing in early July, the Maverick group of companies and Lone Star acquisitions have been integrated with our existing operations and are performing as expected. On August 1, we closed the purchase of the assets of Pat's P&A, Inc. ("Pat's"), a company based in Corpus Christi, Texas, focused on providing plugging and abandonment services ("P&A") primarily in the south Texas market. The Pat's acquisition adds five P&A rigs and related equipment to our south Texas well servicing rig fleet. We expect the acquired assets to produce full-year revenue and EBITDA of approximately $10.5 million and $3 million, respectively.

"The Pat's organization and fleet provides a platform to build a comprehensive P&A service in our south Texas operations similar to our P&A business in the Permian Basin, where we have a leading market position with 17 rigs dedicated to full service P&A activity. We believe the demand for P&A services will continue to increase as the Texas Railroad Commission tightens enforcement of plugging requirements on inoperative or compromised wells throughout the state."

OPERATING DATA





Month ended




July 31,


June 30,




2011

2010


2011








Number of weekdays in period

21

22


22








Number of well servicing rigs (1,3)





Weighted average for period

412

407


412

End of period


412

407


412

Rig hours (000s)


69.0

49.4


73.6

Rig utilization rate(2,3)

73%

50%


74%








Number of fluid service trucks (1)





Weighted average for period

863

792


838

End of period


871

787


838

Truck Hours (000s)


183.4

157.1


178.3








Number of drilling rigs (1,3)





Weighted average for period

10

6


10

End of period


10

6


10

Drilling rig days


279

177


256

Drilling rig utilization (3)

90%

95%


85%

(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 July 2010 has been recalculated as if these three rigs had been reclassified for July 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 5,400 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 States.

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, 2010 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.


432-620-5516




Jack Lascar/Sheila Stuewe


DRG&L / 713-529-6600

SOURCE Basic Energy Services, Inc.

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