UTI Energy Acquires Assets of LaMunyon Drilling Corporation; Acquisition Provides UTI with Five Additional Rigs in Anadarko Basin

Business Wire, June 25, 1998

HOUSTON--(BUSINESS WIRE)--June 25, 1998--UTI Energy Corp. (AMEX: UTI) today announced that it has acquired the assets of LaMunyon Drilling Corporation, a privately owned drilling contractor with principal operations in central Oklahoma, for approximately $12.2 million in cash. Included in the acquisition are LaMunyon's five marketed drilling rigs, four of which are currently operating, and related spare parts, office equipment and rolling stock.

"LaMunyon Drilling Corporation has a well established reputation as a reliable and efficient contractor. We are pleased that Dana LaMunyon has agreed to continue managing the business as an employee of UTI," said Mark Siegel, UTI's Chairman. Vaughn Drum, UTI's President and CEO, added, "The Anadarko Basin is an important natural gas producing region where, with the addition of LaMunyon's rigs, UTI will be marketing a total of 21 rigs."

UTI Energy Corp. is a leading provider of contract drilling and pressure pumping services in the continental United States. With the addition of LaMunyon's rigs, the Company's subsidiaries now own 102 drilling rigs that provide drilling services primarily in Texas, Oklahoma, New Mexico and the Northeast. The Company's pressure pumping subsidiary provides stimulation and cementing services in the Northeast.

Statements made in this press release that state the Company's or management intentions, beliefs, expectations or predictions for the future are forward-looking statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. In addition to the factors set forth above, other important factors that could cause actual results to differ materially include, but are not limited to, the impact of recent declines in prices of oil and gas on the demand for the Company's services, and its associated effect on day rates and rig utilization, industry conditions, integration of acquisitions, demand for oil and gas, and ability to retain management and field personnel. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's Securities and Exchange Commission filings, including but not limited to the Company's report on Form 10-K for the year ended December 31, 1997, and Form 10-Q for the quarter ended March 31, 1998. Copies of these filings may be obtained by contacting the Company or the SEC.

    CONTACT: UTI Energy Corp.
              P. Blake Dupuis, 281/873-4111
                          or
              Sitrick And Company
              Jeffrey Lloyd, 310/788-2850