The merger will result in a combined company with an implied enterprise value of approximately $1.4 billion. The merger agreement provides for a subsidiary of Allis-Chalmers to merge with and into Bronco Drilling, with Bronco Drilling surviving as a wholly-owned subsidiary of Allis-Chalmers.

Upon completion of the transaction, which is expected to occur in mid-2008, it is anticipated that Allis-Chalmers’s stockholders will own approximately 72.1%, and that Bronco Drilling’s stockholders will own approximately 27.9% of the combined company.

The merger is expected to enhance domestic and international growth opportunities, and is expected to facilitate relocation of newly acquired and certain underutilized drilling and workover rigs of Bronco Drilling to Latin America and North African markets.

Frank Harrison, Bronco Drilling’s chairman and CEO, said: We believe the combined entity creates a unique investment opportunity for both sets of stockholders. The combined company will be a fully-integrated oilfield service company with diversified business lines, substantial international exposure and exciting growth opportunities not currently found in a company of similar size.