Clayton Williams Energy Agrees to Sell 2,000 HP Drilling Rigs for $22 Million

MIDLAND, Texas--(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.