Grey Wolf acquiring New Patriot Drilling

Grey Wolf Inc., Houston, agreed to buy privately held New Patriot Drilling Corp. in a cash and stock deal worth about $37 million, plus the assumption of $13.7 million in debt from New Patriot, Casper, Wyo.

March 15, 2004

By OGJ editors
HOUSTON, Mar. 15 -- Grey Wolf Inc., Houston, agreed to buy privately held New Patriot Drilling Corp. in a cash and stock deal worth about $37 million, plus the assumption of $13.7 million in debt from New Patriot, Casper, Wyo.

Closing is expected in April. Grey Wolf agreed to pay $16.3 million in cash and to issue 4.6 million shares of its common stock for New Patriot. The deal's stock portion is worth about $21 million based upon Grey Wolf's closing price of $4.52/share on Mar. 5.

Patriot owns 10 drilling rigs. Thee of the rigs are working in Wyoming and another two are under contract and expected to begin work in Wyoming within 2 months. The remaining five rigs are working in Colorado. Patriot employs 250 people.