Reef Services Acquires Green Country Chemicals

Midland, Texas – December 29, 2009 - Reef Services has announced the acquisition of Green Country Chemicals from Chaparral Energy. This acquisition gives Reef Services a significant increased presence in the state of Oklahoma and north Texas, with primary locations at Pawhuska and Woodward, Oklahoma and the Barnett Shale play of North Texas. These locations provide a more complete coverage for Oklahoma when coupled with the present Reef Services locations at Elk City, Hennessey, Lindsay, and Ada.

A key component of the deal structure was the exchange of Green Country Chemicals for Reef Services’ Acid Division assets.

“This exchange has positioned Reef as a pure chemical services company, which is our core capability, and is part of the continuation of Reef Services’ growth plan for its production and pipeline chemical sales and services business," says Clay Baten, Reef Services’ president and CEO. "This is vital as Reef Services moves towards becoming the premier wholesale provider of chemicals to the well servicing side of the chemical business.”

As an added benefit, Reef gains several key employees with vast experience in both domestic and international chemical sales. These individuals will be key cogs in the development of Reef’s International market exposure, as they presently have sales in Egypt and Russia.

Through this acquisition, Reef Services gains a soap stick manufacturing facility, which will provide an inexpensive alternative to water removal from gas wells.