Clayton Williams Energy Agrees to Sell 2,000 HP Drilling Rigs for $22 Million
May 27 2008 - 4:00PM
Business Wire
Clayton Williams Energy, Inc. (NASDAQ:CWEI) today reported that it
had entered into a binding agreement to sell two 2,000 horsepower
drilling rigs and related components for total cash consideration
of $22 million. The Company�s carrying value for these rigs is
approximately $16.1 million. The Company expects to record a gain
of approximately $5.6 million, net of applicable transaction costs,
during the second quarter of 2008. Net proceeds from the sale will
be used to repay bank indebtedness. The Company expects to close
this sale within 30 days. Clayton Williams Energy, Inc. is an
independent energy company located in Midland, Texas. Except for
historical information, statements made in this release are
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. These statements are based on assumptions and
estimates that management believes are reasonable based on
currently available information; however, management's assumptions
and the Company's future performance are subject to a wide range of
business risks and uncertainties, and there is no assurance that
these goals and projections can or will be met. Any number of
factors could cause actual results to differ materially from
expectations, volatility of oil and gas prices, the need to develop
and replace reserves, the substantial capital expenditures required
to fund operations, exploration risks, uncertainties about
estimates of reserves, competition, government regulation, costs
and results of drilling new projects, and mechanical and other
inherent risks associated with oil and gas production. These risks
and uncertainties are described in the Company's filings with the
Securities and Exchange Commission. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements.
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