Basic Energy Adds 9 Newbuild Rigs
Basic Energy Services, Inc. reported adding nine newbuild rigs and retired one rig, increasing its well servicing rig count to 379 as of June 30, 2007. Rig hours for the month of June 2007 were 68,500 producing a rig utilization rate of 79.1%, an increase from 73.3% in the prior month and a decrease from 92.5% in the same month in 2006.
Drilling days reflect essentially full utilization of the six rigs in place for the month of June 2007 in west Texas. The three drilling rigs relocated from Vernal, Utah were in the process of being reconfigured for drilling in west Texas and were unavailable for work during June.
Basic also increased its fluid service truck fleet by a net of two trucks, bringing its total to 659 trucks as of June 30, 2007.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "Extremely wet weather again limited our ability to get in the field in most of Texas and Oklahoma where the majority of our services are provided. Although certainly less hectic than the year ago pace, underlying demand appears strong throughout our markets and we see an immediate pick up in activity during drier weather in those areas impacted by unusually heavy rain.
"We completed the relocation and modification of three drilling rigs from the Vernal, Utah area to west Texas during June. All three of these rigs are contracted to be drilling by mid-July.
"New equipment entering the market is helping satisfy demand in most of our segments. In our well servicing segment specifically, we have reacted by extending the delivery schedule on the 34 newbuild rigs remaining to be delivered under our 120-rig newbuild program commenced in late 2004. We now expect 22 of those newbuild rigs to be delivered in the last half of 2007 with the remainder to be delivered at the rate of two rigs per month in the first half of 2008."
OPERATING DATA Month ended June 30, May 31, 2007 2006 2007 Number of weekdays in period 21 22 23 Number of well servicing rigs:(1) Weighted average for period 375 346 370 End of period 379 346 371 Rig hours (000s) 68.5 77.4 68.7 Rig utilization rate(2) 79.1% 92.5% 73.3% Number of drilling rigs:(1) Weighted average for period 9 2 9 End of period 9 2 9 Drilling rig days 170 N/A 186 Number of fluid service trucks: Weighted average for period 658 586 656 End of period 659 592 657 (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.
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