MIDLAND, Texas, Nov. 11 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of October 2008. During the month, Basic added one newbuild rig increasing its well servicing rig count to 414 as of October 31, 2008. Rig hours for the month of October 2008 were 75,900 producing a rig utilization rate of 72%, a decrease from 75% and 77% in September 2008 and October 2007, respectively.
Drilling rig days for the month of October 2008 were 258 producing a rig utilization of 92%, a decrease from 99% recorded in September 2008 and an increase from 74% in October 2007.
Basic's fluid services truck fleet changed by a net of four trucks bringing its total to 794 trucks as of October 31, 2008.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "Demand began to soften in most markets during October as the decline in oil and gas prices and overall uncertainty caused operators to reconsider near-term spending plans. Well servicing utilization declined from September levels due to customers reining in workover activity but our fluid services, completion and remedial and contract drilling segments continued in October to operate at levels consistent with those experienced in September. As discussed in our recent third quarter earnings call, we expect uncertainty regarding the level and stability of commodity prices combined with seasonal factors to result in reduced capital spending by our customers over the next several quarters, resulting in lower drilling and completion activity in the fourth quarter and the first quarter of 2009. We expect our customers to continue spending for maintenance services to ensure ongoing production from their existing oil and gas wells, which has historically comprised the majority of demand for our services."
OPERATING DATA Month ended October 31, September 30, 2008 2007 2008 Number of weekdays in period 23 23 22 Number of well servicing rigs: (1) Weighted average for period 414 384 413 End of period 414 386 413 Rig hours (000s) 75.9 74.7 74.9 Rig utilization rate (2) 72% 77% 75% Number of drilling rigs: (1) Weighted average for period 9 10 9 End of period 9 10 9 Drilling rig days 258 229 268 Drilling utilization 92% 74% 99% Number of fluid service trucks: Weighted average for period 792 667 697 End of period 794 667 790 (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.
Contacts: Alan Krenek, Chief Financial Officer Basic Energy Services, Inc. 432-620-5510 Jack Lascar/Sheila Stuewe DRG&E / 713-529-6600
SOURCE Basic Energy Services, Inc. -0- 11/11/2008 /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 / (BAS) CO: Basic Energy Services, Inc. ST: Texas IN: OIL SU: JR-AH -- LATU129 -- 6923 11/11/2008 16:30 EST http://www.prnewswire.com