Law Offices of Howard G. Smith Announces Investigation on Behalf of Shareholders of Allis-Chalmers Energy Inc.

Law Offices of Howard G. Smith announces that it is investigating potential claims against the board of directors of Allis-Chalmers Energy Inc. (“Allis-Chalmers” or the “Company”) (NYSE:ALY) related to the Company’s agreement to be acquired by Bermuda-based Seawell Limited (“Seawell”). The proposed transaction is valued at approximately $890 million, including assumed debt.

Under the terms of the definitive merger agreement entered into by the parties, Allis-Chalmers shareholders will have the right to elect to receive either $4.25 per share in cash or 1.15 Seawell common shares for each share of Allis-Chalmers common stock they own, subject to proration if more than 35% of the shares elect to receive cash. The transaction is anticipated to close by the end of the 2010 calendar year. The investigation concerns possible breaches of fiduciary duty and other violations of law related to approval of the proposed transaction by Allis-Chalmers’ board of directors.

If you own shares of Allis-Chalmers, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at 215-638-4847, Toll Free at 888-638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.