Basic Energy Services Reports Selected Operating Data for October 2011

MIDLAND, Texas, Nov. 7, 2011 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of October 2011.  Basic's well servicing rig count remained unchanged at 417. Well servicing rig hours for the month of October 2011 were 75,300 producing a rig utilization rate of 78%, an increase from 74% and 61% in September 2011 and October 2010, respectively.

During the month, Basic's fluid service truck count increased by two to 874. Fluid service truck hours for the month of October 2011 were 193,500, an increase from 186,500 and 159,400 in September 2011 and October 2010, respectively.

Drilling rig days for the month were 279 producing a rig utilization of 90%, an increase from 89% in September 2011 and a decrease from 96% in October 2010.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "The increased sequential and year over year well servicing utilization in October reflects the strong demand we are seeing  throughout our service lines as our customers continue to pursue aggressive drilling and production programs.  Pricing in all of our markets remains firm and at a level sufficient to offset labor and other cost increases.  

"Our oil and liquids driven markets are particularly strong providing opportunities to deploy additional equipment at high utilization, rates and margins. In October, we deployed six additional well servicing rigs out of our stacked fleet into the Permian Basin market where we continue to generate utilization in excess of 90% with strong pricing.

"We also executed two contracts with two of the larger Permian Basin operating companies that allowed us to expand our drilling fleet. Those contracts provide firm two-year commitments at dayrates in the $18,000 range to commence in early January 2012.   We purchased two relatively new 1,200 horsepower ('hp") SCR rigs with 1,600 hp pump packages for a total cost of $22.5 million. The contracted dayrates should achieve our targeted four-year cash-on-cash payback of the investment.

"The drilling rigs purchase, along with the more modest but steady investment in each of our segments, is representative of our disciplined growth strategy discussed in our third quarter conference call.  We continue to evaluate both acquisition and internal growth opportunities available in each of our segments throughout our footprint."    

Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area.  The company employs more than 5,500 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas and the Rocky Mountain and Appalachian regions.

Additional information on Basic Energy Services is available on the Company's website at http://www.basicenergyservices.com.

Safe Harbor Statement

This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Basic has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete.  However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including (i) changes in demand for our services and any related material impact on our pricing and utilizations rates, (ii) Basic's ability to execute, manage and integrate acquisitions successfully and (iii) changes in our expenses, including labor or fuel costs and financing costs.  Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of Basic's Form 10-K for the year ended December 31, 2010 and subsequent Form 10-Qs filed with the SEC.  While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that anticipated future results will be achieved.  Basic assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by Basic, whether as a result of new information, future events, or otherwise.

SOURCE Basic Energy Services, Inc.