Clayton Williams Energy, Inc. Provides Operations Update

Clayton Williams Energy, Inc. (the “Company”) (NASDAQ:CWEI) today provided an update on its Permian Basin and Austin Chalk/Eagle Ford operations.

The Company is currently running seven rigs – five rigs in the Delaware Basin, with four drilling vertical Wolfbone wells and one drilling horizontal Wolfcamp wells, and two in Andrews County drilling vertical Wolfberry wells. The Company currently plans to continue this program for the remainder of 2012.

The Company’s primary focus is the Delaware Basin in Reeves, Ward, Winkler and Loving Counties, Texas. Since its entry into this emerging, oil-rich resource play in 2010, the Company has accumulated leases covering approximately 65,000 net acres.

To date, the Company has conducted drilling operations on 67 wells in Reeves County: 59 vertical Wolfbone wells and eight horizontal wells targeting multiple Bone Springs/Wolfcamp intervals. The peak 30-day production for all vertical wells spud in 2012 has averaged 158 barrels of oil. Excluding two wells that were not adequately stimulated due to mechanical constraints, the peak 30-day production for three of the five horizontal wells has averaged 307 barrels of oil per day.

The Company has made significant progress toward construction of mid-stream facilities in Reeves County. Currently, more than half of the Company’s wells in Reeves County are connected to gas pipeline facilities, and the Company expects to have most of its producing wells connected to pipelines by the end of the third quarter. In addition, the Company is nearing completion of an oil pipeline and a salt water disposal system for the area.

The Company drilled and completed the Balcar Unit #1, a horizontal Eagle Ford well in Lee County, Texas. Although initial flow rates from the well are encouraging, more production data is needed before the Company can determine if the well is commercially viable. The Company has a significant acreage position in the Giddings Field that may be prospective for Eagle Ford production if the Balcar Unit #1 is successful.

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