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Clayton Williams Energy, Inc. Updates Its Strategic Plans For 2013 And Status Of Operations By Area

Clayton Williams Energy, Inc. (the “Company”) (NASDAQ:CWEI) today provided an update on its strategic plans for 2013 and the status of its Permian Basin and Eagle Ford Shale operations.

As previously announced, the Company plans to take steps during 2013 to reduce debt and balance future drilling commitments with expected financial resources. Actions to be taken this year include:

Sell Wolfberry Assets

The Company is offering for sale its Andrews County Wolfberry assets and has retained RBC Richardson Barr as its exclusive financial and technical advisor to assist with this transaction. If acceptable terms of sale are achieved through this process, the Company anticipates closing the transaction during the second quarter of 2013.

Joint Venture Reeves County Wolfbone Assets

The Company plans to seek a joint venture partner for a portion of its net interest in Reeves County Wolfbone assets through a joint venture arrangement that would be expected to include a combination of upfront cash and a drilling carry. If acceptable terms to a joint venture arrangement are achieved, the Company anticipates closing the transaction during the fourth quarter of 2013.

Reduce Bank Debt

The Company plans to use all cash proceeds from asset sales to reduce bank debt. Although most of the Company’s Wolfberry and Wolfbone assets are pledged to secure borrowings on its revolving credit facility, the Company expects to receive cash proceeds in excess of the loan value assigned to the sold assets, thereby providing the Company with additional liquidity under the credit facility.

Balance Future Drilling Commitments

Through asset sales and joint venture arrangements, the Company expects to achieve a sustainable balance between its future drilling commitments and its expected financial resources.

Throughout the year, the Company will also consider other asset sales and/or monetization transactions that enhance shareholder value and meet strategic operating and financial objectives, including the possible sale of its East Permian Basin Cline Shale/Wolfberry assets in Glasscock and Sterling Counties.

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