Oil States acquires three drilling rigs in West Texas
  by: OilOnline
  Friday, September 01, 2006

Oil States International, Inc. announced that its land drilling subsidiary, Capstar Drilling, L.P., has acquired three land drilling rigs in the Permian Basin for total consideration of $14.0 million. The rigs are new or newly refurbished and are consistent in design and operation with the Company's existing drilling rig fleet. The acquisition was principally financed with funds available under Oil States' existing credit facility.

"These rig additions represent our commitment to growing the Company and expanding our presence in key resource plays in the U.S.," stated Douglas E. Swanson, Oil States' Chief Executive Officer. "This acquisition in the Permian Basin allows us to immediately serve customer needs and capitalize on current market dynamics."