Clayton Williams Energy Provides Operations Update.

MIDLAND, Texas -- Clayton Williams Energy, Inc. (Nasdaq:CWEI) today provided an update to recent drilling activities by area.

South Louisiana

The Company successfully completed two exploratory wells on its Tiger Pass prospect in Plaquemines Parish with a combined test production total of 1,633 barrels of oil and 2,844 Mcf. The Louisiana Fruit Company #1 was completed in two intervals; the G-3 sand at a vertical depth of 8,790 feet, and the Bb-1A sand at a vertical depth of 10,990 feet. The Louisiana Fruit Company #2 was also completed in two intervals; the G-1 sand at a vertical depth of 8,630 feet, and the BA-1 sand at a vertical depth of 8,990 feet.

Test data is as follows:

                                   Oil    Gas
        Well            Interval  (Bbls) (Mcf)  PSI   Choke
----------------------  --------  ------ -----  ---   -----
Louisiana Fruit Co. #1
                          G-3      545    131  1,056  14/64
                         Bb-1A      58  2,301  3,085  13/64

Louisiana Fruit Co. #2
                          G-1      512    210    581  17/64
                         BA-1      518    202    699  16/64

Production is expected to begin in August after the necessary pipeline and production facilities are constructed. Production history is needed before the Company can make an informed estimate of these wells' ultimate production and reserves. The Company owns 100% of the working interest in both wells.

The Company is continuing drilling operations of the second well on its Fleur prospect in Plaquemines Parish, the State Lease 17376 #1, to test several sands in the middle Miocene formation at vertical depths ranging from 13,100 feet to 14,900 feet. The Company has set pipe at a measured depth of 13,920 feet, and is currently drilling to total depth. The Company has logged 30 feet of net pay in its first objective and will test two more potential objectives as indicated from the Fleur #1. The Company owns a 75% working interest in this well and has incurred drilling costs to date totaling approximately $2.1 million, net to its interest. Drilling operations should be completed during the third quarter of 2004.

Mississippi

The Company reached total depth of 16,700 feet on its Weyerhaeuser #1, an exploratory well in Webster County. Mechanical problems encountered while preparing the well to log the Stones River formation resulted in the loss of a portion of the well bore below 11,190 feet. The well had gas shows with indicated porosity in the Stones River formation but the Company was unable to log and evaluate the well. The Company is sidetracking the well and will redrill approximately 5,400 feet of hole to penetrate the target formation. This operation is expected to take approximately 60 days to complete. The Company owns 100% of the working interest in this well and has incurred drilling costs to date totaling approximately $6.1 million.

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

Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: the volatility of oil and gas prices, the Company's drilling results, the Company's ability to replace short-lived reserves, the availability of capital resources, the reliance upon estimates of proved reserves, operating hazards and uninsured risks, competition, government regulation, the ability of the Company to implement its business strategy, and other factors referenced in the Company's public filings with the Securities and Exchange Commission.