Basic Energy Services Inc. (fka BASXQ)

[eastunder]

Basic Energy Services Reports Selected Operating Data For July 2012

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Today : Monday 13 August 2012
Basic Energy Services Reports Selected Operating Data For July 2012
PR Newswire

MIDLAND, Texas, Aug. 13, 2012

MIDLAND, Texas, Aug. 13, 2012 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of July 2012. Basic's well servicing rig count remained unchanged at 431. Well servicing rig hours for the month were 77,400 producing a rig utilization rate of 74%, compared to 76% and 73% in June 2012 and July 2011, respectively.

During the month, Basic's fluid service truck count increased by one truck to 927. Fluid service truck hours for the month were 184,800, compared to 178,400 and 183,400 in June 2012 and July 2011, respectively.

Drilling rig days for the month were 330 producing a rig utilization of 89%, compared to 91% and 90% in June 2012 and July 2011, respectively.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "July activity levels produced slightly higher well servicing and fluid services truck hours compared to June despite a mid-week July 4th holiday which tends to depress activity for the entire week. Demand continued strong in oil markets and our small Appalachian well servicing fleet saw its activity recover a bit from the extremely low levels recorded in June. Our drilling rig fleet continued at essentially full utilization throughout the month. Service lines in our Completion and Remedial Services segment, particularly our stimulation services, experienced slightly lower activity and pricing levels along the lines we have previously projected.

"Notwithstanding the relatively stable activity generated in July, we expect activity and pricing to gradually deteriorate in all service lines through the balance of the year. Equipment and service companies relocating from extremely slow dry gas markets and deliveries of equipment ordered earlier in the year are competing for a flattening level of demand in our oilier markets and creating downward pressure on pricing and upward pressure on wages. Protecting our market share, restricting capital spending and controlling costs remain our priorities in the current operating environment. With total liquidity of more than $335 million at the end of July, we have the ability to take advantage of any fallout this competitive market may create."