Grey Wolf, Basic Energy to merge

Grey Wolf Inc. and Basic Energy Services Inc. have agreed to merge into a $2.9 billion drilling services company.

The new company, which will be named Grey Wolf Inc., will have its headquarters in Houston and will trade on the New York Stock Exchange under the symbol GW.

Terms of the agreement give shareholders of Houston-based Grey Wolf (AMEX: GW) $1.82 in cash and 0.25 shares of the new company for every share owned.

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Midland-based Basic Energy (NYSE: BAS) shareholders will receive $6.70 in cash and about 0.92 shares of the new company for every share owned.

Once merged, the new Grey Wolf will have about 85 million shares outstanding, according to the companies.

The new company will have 7,500 employees and have 395 well servicing and 130 drilling rigs and other oilfield service assets.

Grey Wolf's current chairman, Tom Richards, will serve as chairman of the new company; Ken Huseman, president and chief executive officer of Basic Energy Services, will be CEO; and David Crowley, chief operating officer of Grey Wolf, will be president and COO.