e425
Filed by Basic Energy Services, Inc.
Commission File No. 1-32693
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: Grey Wolf, Inc.
Commission File No. 1-08226
Subject Company: Horsepower Holdings, Inc.
|
|
|
|
|
|
|
Contacts:
|
|
Alan Krenek, Chief Financial Officer |
|
|
|
|
Basic Energy Services, Inc. |
|
|
|
|
432-620-5510 |
FOR IMMEDIATE RELEASE |
|
|
|
|
|
|
|
|
Jack Lascar/Sheila Stuewe |
|
|
|
|
DRG&E / 713-529-6600 |
BASIC ENERGY SERVICES REPORTS SELECTED
OPERATING DATA FOR APRIL 2008
MIDLAND, Texas May 6, 2008 Basic Energy Services, Inc. (NYSE: BAS) (Basic) today reported
selected operating data for the month of April 2008. During the month, Basic added three newbuild
rigs increasing its well servicing rig count to 398 as of April 30, 2008. Rig hours for the month
of April 2008 were 74,700 producing a rig utilization rate of 78%, an increase from 71% last month
and a decrease from 83% in April 2007.
Drilling rig days for the month of April 2008 were 229 producing a rig utilization of 85%, a
decrease from 93% last month and an increase from 81% in the same month in 2007.
Basic increased its fluid service truck fleet by a net of two trucks, bringing its total to 650
trucks as of April 30, 2008.
Ken Huseman, Basics President and Chief Executive Officer, stated, Well servicing hours increased
each week in April as longer daylight hours and more favorable weather allowed us to address the
strong demand that has been created by historically high oil prices and improving gas prices. We
are entering that time of the year when our customers typically pick up the pace of activity
throughout our markets and we expect to see increasing levels of activity in each of our segments
through the third quarter.
OPERATING DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Month ended |
|
|
|
April 30, |
|
|
March 31, |
|
|
|
2008 |
|
|
2007 |
|
|
2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of weekdays in period |
|
|
22 |
|
|
|
21 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of well servicing rigs: 1 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average for period |
|
|
397 |
|
|
|
367 |
|
|
|
394 |
|
End of period |
|
|
398 |
|
|
|
367 |
|
|
|
395 |
|
Rig hours (000s) |
|
|
74.7 |
|
|
|
70.5 |
|
|
|
65.0 |
|
Rig utilization rate 2 |
|
|
78 |
% |
|
|
83 |
% |
|
|
71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of drilling rigs: 1 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average for period |
|
|
9 |
|
|
|
10 |
|
|
|
9 |
|
End of period |
|
|
9 |
|
|
|
10 |
|
|
|
9 |
|
Drilling rig days |
|
|
229 |
|
|
|
242 |
|
|
|
260 |
|
Drilling utilization |
|
|
85 |
% |
|
|
81 |
% |
|
|
93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of fluid service trucks: |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average for period |
|
|
649 |
|
|
|
656 |
|
|
|
645 |
|
End of period |
|
|
650 |
|
|
|
655 |
|
|
|
648 |
|
|
|
|
(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. |
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 4,500 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 States.
Additional information on Basic Energy Services is available on the Companys website at
http://basicenergyservices.com.
Forward Looking Statements and Additional Information
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) Basics ability to successfully execute,
manage and integrate acquisitions, including the merger with Grey Wolf, Inc. (Grey Wolf), (ii)
changes in demand for services and any related material impact on our pricing and utilizations
rates and (iii) changes in our expenses, including labor or fuel costs. Additional important risk
factors that could cause actual results to differ materially from expectations are disclosed in
Item 1A of Basics Form 10-K and 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 the transactions
will be consummated or 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.
Additional Information and Where to Find It
In connection with the proposed mergers, a registration statement of Horsepower Holdings, Inc.
(Holdings), which will include proxy statements of Basic and Grey Wolf and other materials, will
be filed with the Securities and Exchange Commission. INVESTORS AND SECURITY HOLDERS ARE URGED TO
CAREFULLY READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS AND THESE OTHER
MATERIALS REGARDING THE PROPOSED TRANSACTION WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT BASIC, GREY WOLF, HOLDINGS AND THE PROPOSED TRANSACTION. Investors and
security holders may obtain a free copy of the registration statement and the proxy
statement/prospectus when they are available and other documents containing information about Basic
and Grey Wolf, without charge, at the SECs web site at www.sec.gov, Basics web site at
www.basicenergyservices.com, and Grey Wolfs web site at www.gwdrilling.com. Copies of the
registration statement and the proxy statement/prospectus and the SEC filings that will be
incorporated by reference therein may also be obtained for free by directing a request to either
Investor Relations, Basic Energy Services, Inc., (432) 620-5510 or to Investor Relations, Grey
Wolf, Inc., (713) 435-6100.
Participants in the Solicitation
Basic and Grey Wolf and their respective directors, officers and certain other members of
management may be deemed to be participants in the solicitation of proxies from their respective
stockholders in respect of the mergers. Information about these persons can be found in Grey Wolfs
proxy statement relating to its 2008 annual meetings of stockholders as filed with the SEC on April
8, 2008. Information concerning beneficial ownership of Basic stock by its directors and certain
of its executive officers is included in its Form 10-K/A filed on April 29, 2008 and subsequent
statements of changes in beneficial ownership on file with the SEC. Additional information about
the interests of such persons in the solicitation of proxies in respect of the mergers will be
included in the registration statement and the joint proxy statement/prospectus to be filed with
the SEC in connection with the proposed transaction.
# # #