Allis-Chalmers Embarks Early BOP Recertification Plan

Allis-Chalmers embarked on an aggressive plan at the end of 2009 to certify and recertify its existing inventory of blow out preventors (BOPs) and components. This was done well before the new Minerals Management Service guidelines were instituted in the use of BOPs and other pressure control equipment that requires all BOPs to be API certified and verified by third party inspectors.

Micki Hidayatallah, Chairman and CEO stated, "Allis-Chalmers Energy is pleased that it can lead the way in providing certified BOPs to our customers who are drilling and completing oil and gas projects offshore in the Gulf of Mexico and onshore. Our deepwater Gulf of Mexico revenues represent approximately 2% of our consolidated revenues. In addition to recertifying our BOPs to serve our offshore and onshore customers, in 2009 we began to shift the focus of our Rental Services segment to the onshore shale plays by acquiring drill pipe that is in strong demand and is experiencing strong utilization and pricing. Additionally, we have increased our presence in the international markets."

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