Merger Agreement Between Grey Wolf and Basic Energy Services is terminated

A quite surprising news has been announced today saying that Grey Wolf and Basic Energy Services have terminated the agreement and plan of merger formerly entered into Three major Companies i.e. Basic Energy Services, and Horsepower holdings, Inc on April 20th 2008 pursuant to Section 7.1(b)(iii) of the Merger Agreement.

The termination of the merger agreement was decided and taken after Grey Wolf’s stockholders did not approve the Merger Agreement at a special meeting of stockholders held on Tuesday, July 15, 2008. Basic’s stockholders voted in favor of the adoption of the Merger Agreement at a special meeting of stockholders held on July 15, 2008.

The President and CEO, Ken Huseman, had a say that The Board, employees and shareholders of Basic were excited about the merger with Grey Wolf and certainly disappointed that Grey Wolf’s shareholders did not approve the merger. We continue to believe the combination created by the merger of Basic and Grey Wolf would have created significant value for both company’s shareholders. With the termination of the merger agreement, Basic can now return to our focus of building value for our shareholders as we address numerous opportunities to build our business through acquisitions, expansion of our footprint and internal growth within our established markets.

Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The company employs approximately 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 states.

Contacts: Alan Krenek, Chief Financial Officer Basic Energy Services, Inc.

432-620-5510

Jack Lascar/Sheila Stuewe
DRG&E / 713-529-6600

Source: Basic Energy Services, Inc.