Stallion Expands Existing Footprint in Mid-Continental U.S.

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On January 9, 2006, Stallion acquired the assets of Trail Blazer Hot Shot, Inc. (Elk City, Oklahoma). With service locations in Elk City, Canadian, and Chickasha, Trail Blazer has been a leading provider of surface equipment rental services for the major Oklahoma basins. Assets include over 120 forklifts and man-lifts, 40 generators, and a variety of other surface rental equipment.

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Our new offices will enable the Company to support our acquisitive strategy with ongoing administrative, accounting support and employee services. The new build-out provides adequate meeting rooms for ongoing training and provides ample room for projected growth in 2006 and beyond.

On January 9, Stallion acquired the assets of Trail Blazer Hot Shot, Inc. (Elk City, Oklahoma). With service locations in Elk City, Canadian, and Chickasha, Trail Blazer has been a leading provider of surface equipment rental services for the major Oklahoma basins. Assets include over 120 forklifts and man-lifts, 40 generators, and a variety of other surface rental equipment.

The Oklahoma acquisition complements Stallion’s current rig housing operations in Elk City. With this acquisition, Stallion will be able to serve the Texas panhandle, Fayetteville Shale, and other plays of the Arkoma and Anadarko Basin with a comprehensive service offering.

Hill Dishman, Stallion’s chief operating officer, commented, “Trail Blazer comes with a great management team and a large inventory of surface rental equipment. We are planning to integrate our current rig housing services with Trail Blazer’s inventory along with our newly launched remote communications services. Our customers continue to request an integrated package of services at the drill site. Trail Blazer supports our strategy of providing Everything but the Rig™ in the Mid-Continent region.”

The Company now provides services in the Gulf Coast, South Texas, ArkLaTex, Ft. Worth Basin, Permian Basin, Anadarko Basin of Western Oklahoma, Arkoma Basin, Rocky Mountains, and Williston Basin. With over 375 employees in 19 locations and over 1,300 land-based rig housing units, an extensive fleet of surface rental equipment, significant solids control capability, and integrated satellite communications services, Stallion is the leading drilling support service provider in the United States.

To accommodate continued growth, Stallion also recently relocated its corporate office to 410 Roberts. Just east of downtown Houston and about a mile from Minute-Maid Park, the newly renovated warehouse provides 20,000 square feet of custom-built office space where 40 employees provide corporate sales, finance & accounting, human resources, benefits administration, payroll, and operations support services.

David Schorlemer, Stallion’s CFO, commented, “Our new offices will enable the Company to support our acquisitive strategy with ongoing administrative, accounting support and employee services. The new build-out provides adequate meeting rooms for ongoing training and provides ample room for projected growth in 2006 and beyond.”

Stallion is also pleased to announce the promotion of Michael Moore to Vice President-Sales and Marketing. Mr. Moore will continue to lead the Company’s marketing programs and provide leadership in the corporate sales area as well as digital marketing and branding programs.

Please find additional information at the Company’s newly updated web site: http://www.stallionoilfield.com

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