Basic Energy Services, Inc. signed a definitive agreement to acquire all of the outstanding capital stock of JetStar Consolidated Holdings, Inc. ("JetStar") for total consideration of approximately $120 million, subject to adjustments.

The total consideration excludes working capital but includes the repayment of JetStar's outstanding debt. Basic will pay approximately $43.5 million of the consideration in shares of Basic common stock determined within a range of $23-$27 per share in accordance with the agreement.

The transaction is subject to review by regulatory agencies under the Hart-Scott-Rodino Antitrust Improvements Act and customary closing conditions, and is expected to close late February 2007. Basic expects the acquisition of JetStar to contribute first-year revenues and EBITDA (earnings before interest, taxes, depreciation, and amortization) of approximately $63 million and $24 million, respectively, and estimates that the acquisition will be slightly accretive to 2007 earnings per share.

JetStar operates approximately 35,000 horsepower of pressure pumping equipment in Texas, Oklahoma and Kansas. Basic will combine the JetStar operations with its own pressure pumping assets for a combined service fleet of approximately 95,000 horsepower in the same geographic areas.

Ken Huseman, President of Basic, stated, "The acquisition of JetStar provides the market presence, people and equipment to continue building our position in the lower horsepower and shallow-well pressure pumping segment. JetStar, and its Acid Services subsidiary in southwest Kansas, has a long history of providing quality pumping services in their markets following a business strategy similar to ours. The combination of the Basic and JetStar management, field personnel and equipment fleets will allow us to broaden our services within our established markets and explore new opportunities within Basic's corporate footprint."