Clayton Williams Energy Sells Drilling Rigs for $22 Million

Clayton Williams Energy, Inc. reported that it had entered into a binding agreement to sell two 2,000 horsepower drilling rigs and related components for total cash consideration of $22 million. The Company's carrying value for these rigs is approximately $16.1 million. The Company expects to record a gain of approximately $5.6 million, net of applicable transaction costs, during the second quarter of 2008. Net proceeds from the sale will be used to repay bank indebtedness. The Company expects to close this sale within 30 days.