MIDLAND, Texas, Dec. 8 /PRNewswire-FirstCall/ -- Basic Energy Services,
Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the
month of November 2008. During the month, Basic added two newbuild rigs and
retired two rigs leaving its well servicing rig count unchanged at 414 as of
November 30, 2008. Rig hours for the month of November 2008 were 53,600
producing a rig utilization rate of 59%, a decrease from 72% and 71% in
October 2008 and November 2007, respectively.
Drilling rig days for the month of November 2008 were 225 producing a rig
utilization of 83%, a decrease from 92% recorded in October 2008 and an
increase from 82% in November 2007.
Basic's fluid services truck fleet increases by a net of 17 trucks
bringing its total to 811 trucks as of November 30, 2008.
Ken Huseman, Basic's President and Chief Executive Officer, stated,
"Demand in our well servicing and drilling segments has softened in the wake
of the continued decline in commodity prices but our fluid services and
completion and remedial segments continue relatively strong as we complete
previously drilled wells. We expect the impact of lower commodity pricing to
exacerbate the usual season slowdown through the end of this year. In
addition, continued uncertainty in the financial markets will likely further
limit our customers' plans for 2009. The combination of reduced cash flow and
restricted access to the capital markets lead us to expect activity levels
well below prior year levels through at least the first half of 2009 as
customers limit spending to essential maintenance and to only the most
lucrative capital projects. We have drastically curtailed our own capital
spending and implemented more aggressive cost reductions to preserve our
liquidity, which we believe remains more than adequate to weather a protracted
downturn in the industry."
November 30, October 31,
2008 2007 2008
Number of weekdays in period 20 22 23
Number of well servicing rigs:(1)
Weighted average for period 412 385 414
End of period 414 385 414
Rig hours (000s) 53.6 66.1 75.9
Rig utilization rate(2) 59% 71% 72%
Number of drilling rigs(1)
Weighted average for period 9 10 9
End of period 9 10 9
Drilling rig days 225 245 258
Drilling utilization 83% 82% 92%
Number of fluid service trucks:
Weighted average for period 803 657 792
End of period 811 647 794
(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 5,200 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.
CONTACT: Alan Krenek, Chief Financial Officer
Basic Energy Services, Inc.
Jack Lascar/Sheila Stuewe
DRG&E / 1-713-529-6600
SOURCE Basic Energy Services, Inc.
Web Site: http://basicenergyservices.com