Quantum Drilling Motors and Directional Drilling Services Receives Equity Capital from Transaction; Company Plans Expansion in Mid-Continent, Permian, Barnett Shale and Rocky Mountain Regions.

OKLAHOMA CITY -- Quantum, an energy services company focused on horizontal, directional and performance drilling applications, announced today it received an injection of equity capital after successfully completing an asset purchase by Diamondback Energy Services LLC.

While specifics of the purchase were not disclosed, Quantum President Randy Holleyman said that Diamondback acquired 100 percent of the company. The transaction eliminates Quantum's debt, enabling it to invest new capital and future revenues to fund its aggressive growth strategy.

"This is a watershed moment for Quantum," Holleyman said. "We've built a great team and we've experienced dramatic growth over the past five years in our drilling motors and horizontal and directional drilling services. The additional capital will allow us to move forward with our expansion plans."

Quantum annual sales revenues grew from $2.5 million in 2002 to $24 million in '05, a near 10-fold increase.

The agreement with Diamondback keeps the entire Quantum management team and current employees in place. "The Diamondback culture is a perfect fit for us," Holleyman said. "They place a premium on operational continuity and stability. Our management team and employees have worked together to produce consistently solid results over the past five years. We are confident our relationship with Diamondback strengthens our ability to expand and enhance our equipment technology, increase our presence in the areas where we currently deliver services and move into new areas."

In 2005, Quantum relocated its corporate and Mid-Continent service facility to a new 10,000 square foot building near Will Rogers World Airport in Oklahoma City. The company also expanded into the Rocky Mountain and Permian Regions with offices and service centers in Casper, Wyo., and Midland-Odessa, respectively. Quantum also broadened its scope of deliverable services with the acquisition of the shock absorber division of Halliburton.

"We are pleased about this acquisition," Mickey Thompson, CEO of Diamondback, said. "We partner with companies with clear competitive advantages and proven business models. With strong management and broad geographical presence in regions where exploration and production activity are strong, Quantum represents an ideal investment for us. We believe an infusion of capital will provide this management with even more momentum to continue its outstanding growth record."

Quantum is an industry leader offering a full range of high-quality performance drilling motors, and servicing the industry's straight-hole, directional and horizontal applications. The company also offers state-of-the-art well planning and in-house repair facilities at each of its regional locations. The company's Internet address is www.quantumdm.com.

Based in Oklahoma City, Diamondback Energy Services is an integrated oil and gas services and manufacturing company. It is a wholly-owned subsidiary of Wexford Capital LLC. Wexford is an SEC registered investment advisor based in Greenwich, Conn., with over $4 billion in assets under management. Wexford invests in a variety of sectors with extensive expertise in the energy sector, including majority ownership interests in OKC-based Gulfport Energy, Windsor Energy and Bronco Drilling.