MIDLAND, Texas, July 15 /PRNewswire-FirstCall/ -- Basic Energy Services,
Inc. ("Basic") (NYSE: BAS) and Grey Wolf, Inc. ("Grey Wolf") (Amex: GW)
announced today that they have terminated the Agreement and Plan of Merger
(the "Merger Agreement") previously entered into among Basic, Grey Wolf and
Horsepower Holdings, Inc. on April 20, 2008 pursuant to Section 7.1(b)(iii) of
the Merger Agreement. The decision to terminate the Merger Agreement was made
after Grey Wolf's stockholders did not approve the Merger Agreement at a
special meeting of stockholders held on Tuesday, July 15, 2008. Basic's
stockholders voted in favor of the adoption of the Merger Agreement at a
special meeting of stockholders held on July 15, 2008.
Ken Huseman, President and CEO, commented, "The Board, employees and
shareholders of Basic were excited about the merger with Grey Wolf and
certainly disappointed that Grey Wolf's shareholders did not approve the
merger. We continue to believe the combination created by the merger of Basic
and Grey Wolf would have created significant value for both company's
shareholders. With the termination of the merger agreement, Basic can now
return to our focus of building value for our shareholders as we address
numerous opportunities to build our business through acquisitions, expansion
of our footprint and internal growth within our established markets."
Basic provides well site services essential to maintaining production from
the oil and gas wells within its operating area. The company employs
approximately 4,700 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.
Forward Looking Statements and Additional Information
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
changes in demand for services and any related material impact on our pricing
and utilizations rates and changes in our expenses, including labor or fuel
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 and Form 10-Q's filed with the SEC. While Basic makes these statements
and projections in good faith, neither Basic nor its management can guarantee
that the transactions will be consummated or 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&E / 713-529-6600
SOURCE Basic Energy Services, Inc.
Web site: http://www.basicenergyservices.com
(BAS GW)
Investor Relations
