Allis-Chalmers Extends Expiration of Tender Offers for Senior Notes

Allis-Chalmers Energy Inc.

Allis-Chalmers announced an extension of the Expiration Date for each of its previously announced tender offers to purchase limited amounts of its 9.0% Senior Notes due 2014 and its 8.5% Senior Notes due 2017. The Expiration Date of each of the tender offers, as so extended, will be 5:00 p.m., Eastern Time, on Friday, June 26, 2009, in each case, unless such tender offer is terminated earlier or its Expiration Date is extended further.

Pursuant to its Offer to Purchase dated May 20, 2009, as amended by its press release issued on June 3, 2009, Allis-Chalmers is conducting tender offers to purchase up to a maximum acceptance amount of $75,000,000 of the 9.0% Notes and up to a maximum acceptance amount of $50,000,000 of the 8.5% Notes, in each case at a purchase price determined in accordance with the procedures of a modified “Dutch Auction.”

Furthermore, Allis-Chalmers is extending the Early Participation Date applicable to each of the tender offers from 5:00 p.m., Eastern Time, on June 18, 2009, to 5:00 p.m., Eastern Time, on June 26, 2009. Consequently, holders who tender their Notes of either series prior to such extended time, and have their Notes accepted by Allis-Chalmers for purchase, will be entitled to the Total Consideration for such Notes, which will include the Early Participation Payment of $20.00 per $1,000 principal amount of Notes accepted for purchase.

The Withdrawal Date applicable to each of the tender offers was and will continue to be 9:00 a.m., Eastern Time, on Wednesday, June 3, 2009. Consequently, holders who tendered and did not withdraw Notes prior to that time are not entitled to withdraw such Notes, and similarly, holders of Notes tendered after the Withdrawal Date, but on or prior to the Expiration Date, may not withdraw their tendered Notes.

As of 5:00 p.m., Eastern Time today, Allis-Chalmers had received valid tenders of $30,562,000 aggregate principal amount of the 9.0% Notes, and $44,200,000 aggregate principal amount of the 8.5% Notes. This represents approximately 11.99% and 17.68% of the outstanding principal amount of the 9.0% Notes and the 8.5% Notes, respectively.

The tender offers are conditioned upon the satisfaction or waiver of certain conditions, including Allis-Chalmers’ receipt of the funds necessary to complete the tender offers from its previously announced rights offering and convertible preferred stock sale, which are each subject to certain terms and conditions. Subject to applicable law, Allis-Chalmers may terminate the tender offers at any time before the Expiration Date in its sole discretion.