Allis-Chalmers Energy Inc. announced the sale of its capillary tubing units and related equipment to BJ Services Company for $16,250,000 in cash. Allis-Chalmers will retain the accounts receivables associated with the capillary tubing business.

Micki Hidayatallah, Allis-Chalmers' Chairman and Chief Executive Officer, stated, "We determined that the capillary tubing business did not fit our long term plan and believe there are other opportunities to redeploy our capital in a way that would be more beneficial for the future growth of Allis-Chalmers. Our Production Services segment, of which the capillary tubing assets represented a small portion, will continue to focus on providing a variety of production-related rental tools and equipment and services, including coil tubing, wire line services and land and offshore pumping services."