Precision Drilling presents third offer to Grey Wolf

By Lisa Kerner

Charlotte, N.C., June 25 - Grey Wolf, Inc. said its board of directors will evaluate the third unsolicited proposal it received from Precision Drilling Trust to acquire the company for $10.00 per share in cash and trust units.

The offer is conditioned on Grey Wolf shareholder approval and completion of confirmatory due diligence, a Grey Wolf news release said.

Precision Drilling included letters from Deutsche Bank Securities, Inc. and Royal Bank of Canada indicating that they were "highly confident" that financing could be arranged.

Previously, Grey Wolf rejected two prior offers from Precision Drilling, one for $9.00 per share and one for $9.30 per share.

Grey Wolf said its merger agreement with Basic Energy Services, Inc. and Horsepower Holdings, Inc. remains in effect.

That agreement calls for Grey Wolf shareholders to receive $1.82 in cash and 0.25 of a share of new Grey Wolf common stock for each share of Grey Wolf they currently own or, based on the exchange ratio, one share of new Grey Wolf for each four shares of Grey Wolf held in addition to the cash consideration, a prior news release said.

Basic Energy shareholders will receive $6.70 in cash and 0.9195 of a share of new Grey Wolf for each share of Basic Energy they currently own, it was already noted.

Houston-based Grey Wolf is the fourth-largest provider of contract land drilling services in the United States.

Basic Energy is the third-largest well servicing rig contractor in the United States. The company is located in Midland, Texas.

Precision Drilling is a Calgary, Alta., oil and gas drilling and exploration company.

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