Basic Energy Services Reports Selected Operating Data for March 2011

MIDLAND, Texas, April 7, 2011 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of March 2011.  Basic's well servicing rig count remained constant at 412 as of March 31, 2011.  Well servicing rig hours for the month of March 2011 were 72,900 producing a rig utilization rate of 70%, an increase from 59% and 53% in February 2011 and March 2010, respectively.

During the month, Basic's fluid service truck count increased by six to 830 as of March 31, 2011, as a result of adding 16 trucks offset by ten retirements.  Fluid service truck hours for the month of March 2011 were 180,000, an increase from 147,400 and 151,400 in February 2011 and March 2010, respectively.

Drilling rig days for the month of March 2011 were 185, producing a rig utilization of 99%, essentially flat with February 2011 and an increase from 88% in March 2010.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "Activity levels across our business segments in March were the highest since October 2008 driven in large part to our substantial presence in oil-oriented markets. Industry utilization levels in those more active regional markets have begun to support price increases sufficient to offset higher wage and fuel costs and allow for modest margin improvement. Those strong fundamentals combined with the additional daylight hours and more favorable weather should produce higher utilization into the spring and summer months.

"We continue to systematically deploy additional equipment to meet demand in each service line.  In addition to the increase in the fluid services truck count, we've added 41 frac tanks in March. We expect similar additions of both of these types of assets in the months ahead.  The previously announced 25,000 hhp frac spread was fully delivered at month end and has been deployed in the Wolfberry Play with a full work schedule into 2012.  Demand for frac equipment remains very strong with components of that spread placed in the field performing smaller fracs during March.

"Our drilling segment will be the focus of growth in the second quarter.  On March 31, 2011, we closed the purchase of three 'Super Single' class 1,000 horsepower drilling rigs equipped with top drives and 1,300 horsepower pumps for approximately $22 million. Those rigs will be deployed in the Wolfberry Play in the Permian Basin with two of the rigs projected to be in the field by the end of April and the third activated in early May.  All three of these rigs are committed on programs expected to carry through year end at an average dayrate of $16,000.  We also purchased a smaller rig to perform casing 'pre-sets' in the Wolfberry Play.  That rig will be deployed in April and will drill surface holes ahead of deeper drilling rigs to allow one of our customers to achieve higher productivity.  This smaller rig will earn $11,000 per day and produce margins consistent with our other shallow rigs.

"With the current outlook for oil prices and a relatively stable natural gas market, we believe increased spending for all phases of oil and gas drilling and production will drive demand for our services through the balance of 2011.   We are evaluating a number of internal and acquisition opportunities to build our position across all our regional markets and business segments".  

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 4,700 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.