Superior Well Services Acquires Oilfield Service Assets from Diamondback

Superior Well Services has entered into a definitive asset purchase agreement to acquire certain oilfield service assets from Diamondback Holdings, LLC, a privately-owned company. Pursuant to the terms of the agreement, Superior will acquire Diamondback's pressure pumping, fluid logistics and completion, production and rental tools business lines for $270.0 million in cash, subject to certain closing adjustments. The purchased business lines produced revenue of $241.0 million for the trailing twelve month period ended June 30, 2008. Superior will provide details of the funding at a later date and expects this transaction will close in the fourth quarter of 2008, subject to customary closing conditions and regulatory approvals.

As part of the acquisition, Superior will acquire an additional 128,000 of stimulation horsepower, 105 fluid hauling transports and trucks, 400 frac tanks and six water disposal wells. After the transaction, Superior will operate a total of 416,000 of stimulation horsepower, an increase of 44% percent from the quarter ended June 30, 2008.

David Wallace, Chief Executive Officer, said: "This is an exciting transaction for Superior and we're thrilled to add such a high-quality group of employees and assets. Once the Diamondback assets are fully incorporated into Superior's operations, we expect this acquisition to be accretive to net income and cash flow on a per share basis in 2009. Our acquisition of assets from Diamondback enables Superior to strategically increase market share without bringing additional capacity to the pressure pumping industry and provides us the opportunity to provide a broader array of wellbore services to both new and existing customers. The majority of pressure pumping equipment being acquired from Diamondback is less than three years old and was built by many of the same suppliers we use, easing integration. In addition to the reduction of shared overhead costs, we believe profit upside exists from combining Diamondback's high-quality assets with our geographically diversified operations. Further, Diamondback's existing service centers have limited territorial overlap with Superior's existing service centers, which we expect will allow us to rapidly increase our operational footprint while retaining key personnel and the customer relationships they have worked hard to establish."

The assets that Superior is purchasing from Diamondback are operating in the Anadarko, Arkoma, and Permian Basins, as well as the Barnett Shale, Woodford Shale, West Texas, Southern Louisiana and the Texas Gulf Coast.

Jefferies & Company, Inc. served as exclusive financial advisor to Superior, and Vinson & Elkins LLP served as its legal counsel.

Superior Well Services, Inc. is an oilfield services company that offers a complete suite of pressure pumping, down-hole surveying and completion services to its customers in every major oil and gas basin from the Appalachia Basin to the Rocky Mountains. The company provides its services through 26 service centers located in Cottondale, Alabama; Van Buren, Arkansas; Brighton and Trinidad, Colorado; Bossier City, Louisiana; Gaylord, Michigan; Columbia, Mississippi; Wooster, Ohio; Artesia and Farmington, New Mexico; Williston, North Dakota; Hays, Kansas; Cleveland, Clinton, Enid and Hominy, Oklahoma; Bradford, Black Lick and Mercer, Pennsylvania; Alvarado, Texas; Vernal, Utah; Norton, Virginia; Buckhannon, Jane Lew and Kimball, West Virginia; as well as Rock Springs, Wyoming.


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