Basic added three newbuild rigs to its fleet, increasing its well servicing rig count to 365 as of November 30, 2006. Rig hours for the month of November 2006 were 70,900 producing a rig utilization rate of 80.9%, a decrease from 85.9% during the same month in 2005, and a decrease from 91.0% during October 2006. In the year earlier period, the normal seasonal slowdown was muted as increasing oil and gas prices and mild weather promoted exceptionally strong demand and utilization. With moderating oil and gas prices and normal weather, utilization in the current period has reverted to a more typical level. The decline in the utilization rate from the prior month resulted primarily from the Thanksgiving holiday along with the normal seasonal factor of fewer available daylight hours.
Basic also increased its fluid service truck fleet by a net of three trucks, bringing its total to 640 trucks as of November 30, 2006.
OPERATING DATA Month ended November 30, October 31, 2006 2005 2006 Number of weekdays in period 22 22 22 Number of well servicing rigs: (1) Weighted average for period 362 315 358 End of period 365 317 362 Rig hours (000s) 70.9 65.5 78.9 Rig utilization rate (2) 80.9% 85.9% 91.0% Number of fluid service trucks: Weighted average for period 639 474 636 End of period 640 479 637 (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 4,000 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.
Contacts: Alan Krenek, Chief Financial Officer
Basic Energy Services, Inc.
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