BAS Basic Energy Services Inc New

FORT WORTH, Texas, Feb. 27, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today that it has signed an agreement to purchase 74,000 hydraulic horsepower (hhp) to be used in two frac spreads.  The total all-in cost of the 74,000 hhp and additional associated equipment is approximately $28.5 million, or under $400 per hhp. The purchase will be paid for by using a combination of cash and capital leases. It is anticipated that this equipment will be ready to be deployed during the month of May. With this purchase, Basic's total frac hhp will be 431,650 and total hhp will be 517,445.

Roe Patterson, Basic's President and Chief Executive Officer, stated, "We have seen an increase in frac activity in our Permian Basin and Mid-Continent operating areas and expect to have all of our remaining stacked fleet activated by the end of March. Since the beginning of the year, we have been able to improve our frac pricing in the range of 5 to 15%, depending on the operating area.

"We were fortunate to be able to find and purchase this equipment. The majority of these spreads were manufactured between 2013 and 2014, and then warm-stacked because of inactivity. It has been maintained according to our very own stacking procedures and is therefore well preserved for like-new performance and operating life expectancy. In addition, the frac pumps on this equipment will have software installed that will enable them to be compatible and interchangeable with the rest of our pressure pumping fleet. We are in process of filling the calendar for these new frac spreads."

Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area.  The Company employs over 3,800 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.

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SOURCE Basic Energy Services, Inc.