Grey Wolf Closes Acquisition of New Patriot Drilling

Grey Wolf has closed the previously announced acquisition of New Patriot Drilling Corp. Grey Wolf acquired all of the outstanding capital stock and stock equivalents of Patriot by merger in exchange for $15.8 million in cash and 4,610,480 shares of Grey Wolf common stock. In addition, Grey Wolf made payments of $14.7 million to retire the outstanding debt of Patriot. Patriot's estimated working capital at closing was $1.7 million (including $1.2 million in cash) excluding the current portion of the debt repaid at closing by Grey Wolf. The cash consideration is subject to final adjustment for changes in Patriot's working capital.

"We are extremely pleased to complete this transaction and welcome the Patriot employees to Grey Wolf. With this acquisition, Grey Wolf now has 14 rigs in the Rocky Mountain region ranging from 450 to 4000 horsepower," said Tom Richards, Chairman, President and Chief Executive Officer of Grey Wolf. "We believe the Rockies hold great potential for increased natural gas drilling and with the closing of this transaction, Grey Wolf has a full complement of rigs to meet the demand."

Of the 10 drilling rigs acquired, eight are currently working and the remaining two are under contract and are expected to begin work in Wyoming in the next month. Three of the rigs currently working are in Wyoming and five are in Colorado. The rigs acquired are three diesel electric rigs ranging in horsepower from 1,000 to 3,000 and seven mechanical rigs ranging in horsepower from 450 to 700.