MIDLAND, Texas, June 13 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of May 2007. During the month, Basic added three newbuild rigs and converted a drilling rig to workover mode increasing its well servicing rig count to 371 as of May 31, 2007. Rig hours for the month of May 2007 were 68,700 producing a rig utilization rate of 73.3%, a decrease from 83.1% and 88.4% in the prior month and same month in 2006, respectively.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "Oil and gas field activity was reduced in May due to unusually wet weather in Texas and Oklahoma which negatively impacted all of our service lines. In our well servicing segment, we estimate a loss of 5,000 to 6,000 rig hours during the first two weeks of the month as muddy conditions restricted our rig movement. Given that estimated impact to rig hours, our rig utilization rate for May was reduced by seven to eight percentage points. The Memorial Day holiday reduced activity in the last week of May, further increasing the drop in rig hours from April.
"Recent drier weather has allowed field activity to increase from the pace experienced in May but not to the level we enjoyed during the same period in 2006. Flattening or declining drilling activity in several markets and new equipment have balanced supply and current demand so we do not expect utilization rates to match those achieved last year until later in the year. Pricing is stable and we don't foresee significant rate increases until activity increases to prior year levels.
"We operated six of nine drilling rigs during the month with all six rigs purchased in the Sledge Drilling acquisition in early April 2007 active in the Permian Basin. During May, we relocated three drilling rigs that were operating in the Uintah Basin to expand our fleet in the Permian Basin. The rigs were inactive in May and are in the process of being re-configured to match the requirements of the Permian Basin market. All three should be under contract during the third quarter."
Basic also increased its fluid service truck fleet by a net of two trucks, bringing its total to 657 trucks as of May 31, 2007.
OPERATING DATA Month ended May 31, April 30, 2007 2006 2007 Number of weekdays in period 23 23 21 Number of well servicing rigs: (1) Weighted average for period 370 337 367 End of period 371 346 367 Rig hours (000s) 68.7 75.4 70.5 Rig utilization rate (2) 73.3% 88.4% 83.1% Number of drilling rigs: (1) Weighted average for period 9 2 10 End of period 9 2 10 Number of fluid service trucks: Weighted average for period 656 554 656 End of period 657 580 655 (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 4,400 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://basicenergyservices.com.
SOURCE Basic Energy Services, Inc.
CONTACT: 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.
Web site: http://basicenergyservices.com