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Basic Energy Services Reports Selected Operating Data for June 2011

MIDLAND, Texas, July 7, 2011 /PRNewswire via COMTEX/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of June 2011. Basic's well servicing rig count remained unchanged at 412 as of June 30, 2011. Well servicing rig hours for the month of June were 73,600 producing a rig utilization rate of 74%, an increase from 68% and 54% in May 2011 and June 2010, respectively.

Basic's fluid service truck count as of June 30, 2011 remained unchanged at 838. Fluid service truck hours for the month were 178,300, an increase from 175,700 and 158,500 in May 2011 and June 2010, respectively.

Drilling rig days for the month were 256 producing a rig utilization of 85%, an increase from 81% in May 2011 and a decrease from 98% in June 2010.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "Our June operating performance benefited from more normal weather in the Permian and Williston Basin markets and improving demand throughout our footprint. The well servicing rig utilization rate of 74% in June was the highest utilization rate achieved since September 2008. Both our fluid services and completion and remedial services segments continued to improve as drilling and frac activity grew through the quarter. Our drilling rig day utilization improved from May as all three of our Super Single rigs have now been deployed in the field.

"Each of our segments experienced growth in activity through the end of the quarter to achieve the revenue guidance for the second quarter that we gave last month. We expect demand for our services to build over the next several quarters in most of our markets with opportunities for at least modest margin gains. Given that outlook, we have recently obtained Board approval to increase our 2011 capital budget by $25 million. Those funds will be used primarily to purchase fluid services assets including trucks, tanks and disposal facilities. Our total capital expenditure program for 2011 is now expected to be approximately $183 million.

"Our acquisition efforts should produce meaningful results in the third quarter. The due diligence phase for our acquisition of the Maverick companies is winding down and we expect to close on this transaction within the next few days. We'll provide more details of the potential impact of that acquisition upon its closing."

OPERATING DATA


Month ended


June 30,


May 31,


2011

2010


2011





Number of weekdays in period

22

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)

73.6

53.4


68.1

Rig utilization rate (2,3)

74%

54%


68%






Number of fluid service trucks (1)





Weighted average for period

838

800


838

End of period

838

796


838

Truck Hours (000s)

178.3

158.5


175.7






Number of drilling rigs (1,3)





Weighted average for period

10

6


10

End of period

10

6


10

Drilling rig days

256

176


252

Drilling rig utilization (3)

85%

98%


81%


(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 June 2010 has been recalculated as if these three rigs had been reclassified for June 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 5,000 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.


432-620-5510




Jack Lascar/Sheila Stuewe


DRG&L / 713-529-6600

SOURCE Basic Energy Services, Inc.

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