Clayton Williams Energy, Inc. Announces Results Of Special Meetings Of Limited Partners Of Southwest Royalties Partnerships

Clayton Williams Energy, Inc. (“CWEI”) (NASDAQ:CWEI) announced that at a special meeting of limited partners held today, each of the 24 limited partnerships for which its wholly owned subsidiary, Southwest Royalties, Inc. (“SWR”) serves as the general partner (the “SWR Partnerships”) approved an agreement and plan of merger dated as of October 28, 2011, pursuant to which each SWR Partnership will merge into SWR, with SWR being the surviving entity in the merger. Upon consummation of the mergers, the limited partner interests in each of the SWR Partnerships, other than those held by SWR, will be converted into the right to receive cash. SWR will not receive any cash payment for its partnership interests in the SWR Partnerships. However, as a result of the mergers, SWR will acquire 100% of the assets and liabilities of the SWR Partnerships.

Payments for merger consideration to limited partners aggregating approximately $38.6 million are expected to be mailed promptly after the closing of the mergers, which is scheduled for March 14, 2012. CWEI expects to obtain the funds to finance the aggregate merger consideration by conveying a volumetric production payment on certain properties acquired in the mergers to a bank.

Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas.

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or current facts, that address activities, events, outcomes and other matters that we plan, expect, intend, assume, believe, budget, predict, forecast, project, estimate or anticipate (and other similar expressions) will, should or may occur in the future are forward-looking statements. These forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events. The Company cautions that its future natural gas and liquids production, revenues, cash flows, liquidity, plans for future operations, expenses, outlook for oil and natural gas prices, timing of capital expenditures and other forward-looking statements are subject to all of the risks and uncertainties, many of which are beyond our control, incident to the exploration for and development, production and marketing of oil and gas.

These risks include, but are not limited to, the possibility of unsuccessful exploration and development drilling activities, our ability to replace and sustain production, commodity price volatility, domestic and worldwide economic conditions, the availability of capital on economic terms to fund our capital expenditures and acquisitions, our level of indebtedness, the impact of the current economic recession on our business operations, financial condition and ability to raise capital, declines in the value of our oil and gas properties resulting in a decrease in our borrowing base under our credit facility and impairments, the ability of financial counterparties to perform or fulfill their obligations under existing agreements, the uncertainty inherent in estimating proved oil and gas reserves and in projecting future rates of production and timing of development expenditures, drilling and other operating risks, lack of availability of goods and services, regulatory and environmental risks associated with drilling and production activities, the adverse effects of changes in applicable tax, environmental and other regulatory legislation, and other risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

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