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Allis-Chalmers Energy Announces Directional Drilling Acquisitions

Posted on: Tuesday, 31 July 2007, 09:08 CDT

Allis-Chalmers Energy Inc. (NYSE:ALY) today announced that it recently acquired two companies which have expanded its directional drilling capabilities. Coker Directional, Inc. and Diggar Tools, LLC were purchased for an aggregate purchase price of approximately $15 million. Together, these companies add six directional drillers and 115 downhole motors to Allis-Chalmers' directional drilling operations.

Coker Directional operated in the Gulf Coast and Central Texas regions, while Diggar Tools operated in the Rocky Mountains with offices in Denver, Colorado and Casper, Wyoming.

Micki Hidayatallah, Allis-Chalmers' Chairman and Chief Executive Officer, stated, "These acquisitions increase our geographic footprint in the Rocky Mountains, add equipment that would have taken at least one year to acquire and provide us with additional directional drillers and salesmen in complimentary areas of operation. We believe these acquisitions increase our reputation of excellence and quality in directional drilling and allow for increased flexibility in pricing for our directional services."

With these additional personnel and equipment, Allis-Chalmers expects to increase its overall utilization of directional drilling motors, reduce third-party motor rental expense, and enhance profitability. In addition, Allis-Chalmers anticipates expanding its service offerings in the Rocky Mountain region for straight-hole drilling motors (non-manned), directional motors and directional drillers.

About Allis-Chalmers

Allis-Chalmers Energy Inc. is a Houston-based multi-faceted oilfield services company. It provides services and equipment to oil and natural gas exploration and production companies, domestically in Texas, Louisiana, New Mexico, Colorado, Oklahoma, Mississippi, Utah, Wyoming, Arkansas, Alabama, West Virginia, offshore in the Gulf of Mexico, and internationally primarily in Argentina and Mexico. Allis-Chalmers provides rental services, international drilling, directional drilling, tubular services, underbalanced drilling, and production services. For more information, visit Allis-Chalmers' website at http://www.alchenergy.com or request future press releases via email at http://www.b2i.us/irpass.asp?BzID=1233&to=ea&s=0.

Forward-Looking Statements

This press release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Allis-Chalmers' business, financial condition, results of operations and prospects. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, but are not limited to, demand for oil and natural gas drilling services in the areas and markets in which Allis-Chalmers operates, competition, obsolescence of products and services, the ability to obtain financing to support operations, environmental and other casualty risks, and the effect of government regulation. Further information about the risks and uncertainties that may affect Allis-Chalmers are set forth in our company's most recent filings on Form 10-K (including without limitation in the "Risk Factors" section) and in its other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Allis-Chalmers undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.

Source: Business Wire

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