news release

12/28/06

Diamondback Forms Family of Energy Service Providers

With the focus of being a one-stop provider of oilfield services, Diamondback Energy Services has brought together 11 companies, reaching across 11 states.

The companies include providers of drilling technology and applications, completion and production, stimulation and pumping, and fluid logistics and well-site services.

CEO Arty Straehla said that together, these companies can provide the services needed at all levels of production – from drilling location preparation to well abandonment.
“By connecting companies that offer a wide range of services, Diamondback and its employees across the nation are helping to unclog the oilfield services bottleneck that continues to hamper operators’ ability to produce the energy that America needs,” Straehla said.

Drilling Technology Services & Applications

Diamondback’s drilling technology services and applications segment includes onshore directional and horizontal drilling, using state-of-the-art downhole steering and motor technology to address unconventional resource plays. This technology is the fastest growing segment of the onshore drilling market in the United States. It reduces the time it takes to drill a well by up to 30 percent, which could save producers significant time and money at current day rates. Oklahoma City-based Quantum Drilling Motors makes up this segment.

Completion & Production Services

The completion-production segment of Diamondback provides completion of newly drilled wells, re-entries and maintenance or remedial services to existing wellbores. This segment also sells expendable equipment and rents reusable tools that can be used in the completion of wells. Well site construction is another component. Companies included in this segment are Packers & Service Tools, Pioneer Oilfield Services, and Diamondback Well Service.

Fluid Logistics & Well-Site Services

This segment includes the transport of fluids used in drilling, subsequent stimulation operations and other production-related fluids transfer and disposal. Diamondback has one of the largest fluid hauling fleets in the Mid-Continent region, with more than 120 fluid hauling transports. The segment also includes 250 frac tanks for storage and testing operations, 100-plus miscellaneous trucks and well site construction equipment, and six highly productive disposal wells in southern Oklahoma and northern Texas. Total Oilfield Services and Sooner Trucking comprise this segment.

Stimulation & Pumping Services

Diamondback’s stimulation and pumping segment includes cement pumping, water pumping and fracturing services. These services are used to establish, maintain and revitalize hydrocarbon flow throughout the entire life of the well. Companies that make up this segment are Diamondback Pumping Services, Cementing Services and Total Pumping Services.

Mike Terry, Executive Vice President for Diamondback, said that along with a wide range of services, experienced management is an advantage for Diamondback companies.
“The managers at each of these companies have an extensive track record in the oilfield services business,” Terry said. Collectively, they average more than 25 years of oil and gas operating experience each. Their relationships with customers are also a big plus.

Doug Rather, General Manager for Cementing Services, based in Marlow, Okla., said he feels good about his company’s future as part of Diamondback. “Diamondback has helped speed the growth for Cementing Services and helped improve the benefit packages for the employees,” Rather said. “We are building a new office building, warehouse and acid loading facility and lab. All these things were a long way down the road before we joined Diamondback. We have also opened a facility in Clinton, Okla., and are looking at expansion into other areas.”

Rather said he is proud to be part of the Diamondback family. "I trust the leadership at Diamondback and expect that they will lead this company in the right direction,” Rather said. “We at Cementing Services are proud to be part of the Diamondback team.”

Diamondback was formed by Wexford Capital LLC, a hedge fund based in Greenwich, Conn. Wexford has made investments in many industries, with particular expertise in the energy and natural resources sectors.