EXHIBIT 10.12A

INCREMENTAL ASSUMPTION AGREEMENT

     This Incremental Assumption Agreement dated as of May 10, 2004
(“Agreement”) is by and among Oil States International, Inc., a Delaware
corporation (the “U.S. Borrower”), Wells Fargo Bank, National Association and
each of the other lenders listed as an “Increasing Lender” on the signature
pages hereto (each an “Increasing Lender” and collectively, the “Increasing
Lenders”) and Wells Fargo Bank, National Association, as successor-by-merger to
Wells Fargo Bank Texas, National Association, as Administrative Agent for the
Lenders under the Credit Agreement described below (the “Administrative Agent”).

A.   Reference is made to the Credit Agreement dated as of October 30, 2003 (as
amended, supplemented or otherwise modified on or before the date hereof,
“Credit Agreement”) among the U.S. Borrower, PTI Group Inc., a corporation
amalgamated under the laws of the province of Alberta (the “Canadian Borrower,
and, together with the U.S. Borrower, the “Borrowers”), the Lenders, the
Administrative Agent and The Bank of Nova Scotia, as administrative agent for
the Canadian Lenders (the “Canadian Administrative Agent”). All capitalized
terms used herein and not otherwise defined shall have the meanings given such
terms in the Credit Agreement.

B.   Pursuant to Section 2.23 of the Credit Agreement, the U.S. Borrower has the
right, subject to the terms and conditions thereof, to increase the Total
Commitment by allowing one or more Lenders to increase their Commitments so that
such added Commitments shall equal the increase in Total Commitment requested by
the U.S. Borrower.

C.   The U.S. Borrower has given notice to the Administrative Agent of its
intention, pursuant to such Section 2.23 and with the consent of the Increasing
Lenders, to increase the Total U.S. Commitments from $180,000,000 to
$205,000,000.

     Accordingly, the parties hereto agree as follows:

     Section 1. Increase of Total U.S. Commitment. Pursuant to Section 2.23 of
the Credit Agreement, the amount of Total U.S. Commitment is hereby increased
from $180,000,000 to $205,000,000. Each Increasing Lender’s U.S. Commitment,
after giving effect to this Agreement is set forth on Schedule 1 attached hereto
and incorporated herein for all purposes.

     Section 2. Increasing Lenders. Each Increasing Lender (i) confirms that it
has received a copy of the Credit Agreement, together with copies of the
financial statements referred to in Section 3.05 thereof and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Agreement, (ii) agrees that it will,
independently and without reliance upon the Administrative Agent or any other
Lender or Agent and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Loan Documents, (iii) appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under the Loan Documents as are delegated to the

 

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Administrative Agent by the terms thereof, together with such powers as are
reasonably incidental thereto, (iv) represents that the execution and delivery
of this Agreement by such Increasing Lender is duly authorized, and (v) agrees
that it will perform in accordance with their terms all of the obligations which
by the terms of the Loan Documents are required to be performed by it as a
Lender.

     Section 3. Conditions Precedent. The effectiveness of this Agreement is
subject to the satisfaction or waiver of the following:

     (a) the Administrative Agent shall have received counterparts of, or
telecopied signature pages of, this Agreement executed by the U.S. Borrower, the
U.S. Subsidiary Guarantors and the Increasing Lenders;

     (b) if requested by any Increasing Lender, the Administrative Agent shall
have received a promissory note in the amount of its U.S. Commitment as
increased hereby;

     (c) the Administrative Agent shall have received, on behalf of themselves,
the Lenders and the Issuing Banks, a favorable written opinion of Vinson &
Elkins L.L.P., U.S. counsel for the U.S. Borrower and the U.S. Subsidiary
Guarantors, in form and substance reasonably satisfactory to the Administrative
Agent;

     (d) the Administrative Agent shall have received a certificate of the
Secretary or Assistant Secretary of the U.S. Borrower and each U.S. Subsidiary
Guarantor certifying (i) that there have been no changes to the certificate of
incorporation, including all amendments thereto, and the by-laws of such Loan
Party since the Closing Date and (ii) that attached thereto is a true and
complete copy of resolutions duly adopted by the Board of Directors of such Loan
Party authorizing the increase in the Total U.S. Commitment and the borrowings
relating thereto, and that such resolutions have not been modified, rescinded or
amended and are in full force and effect; and

     (e) the Borrower shall have paid to the Administrative Agent (i) for its
own account, the fees set forth in the Administrative Agent Fee Letter and
(ii) to the extent invoiced, reimbursement or payment of all out-of-pocket
expenses (including, without limitation, the reasonable fees, charges and
disbursements of counsel for the Administrative Agent).

     Section 4. Representations and Warranties. The U.S. Borrower hereby
represents and warrants that

     (a) the representations and warranties set forth in Article III of the
Credit Agreement and in each other Loan Document are true and correct in all
material respects on and as of the date hereof with the same effect as though
made on and as of the date hereof, except to the extent such representations and
warranties expressly relate to an earlier date;

     (b) each Borrower and each other Loan Party are in compliance with all the
terms and provisions set forth in the Credit Agreement and in each other Loan
Document

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on its part to be observed or performed, and at the time hereof and immediately
thereafter, no Event of Default or Default shall have occurred and be
continuing; and

     (c) there has been no material adverse change in the business, assets,
operations, condition (financial or otherwise) or prospects of the Borrowers and
the Subsidiaries, taken as a whole, since December 31, 2002.

     Section 5. Consents. Each of the U.S. Subsidiary Guarantors and the
Canadian Borrower hereby consent to the increase in the Total U.S. Commitment
effectuated hereby.

     Section 6. Governing Law; Credit Document. This Agreement shall be governed
by, and construed in accordance with, the laws of the State of New York. This
Agreement is a “Loan Document” for all purposes.

     Section 7. Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement.

     Section 8. Expenses. The U.S. Borrower agrees to pay on demand all costs
and expenses of the Administrative Agent in connection with the preparation,
negotiation, execution and delivery of this Agreement, including, without
limitation, the reasonable fees and out-of-pocket expenses of counsel for the
Administrative Agent with respect thereto.

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

              OIL STATES INTERNATIONAL, INC.
 
       

  by   /s/ CINDY B. TAYLOR 

      Name: Cindy B. Taylor

      Title: Senior Vice President & CFO
 
            WELLS FARGO BANK, NATIONAL ASSOCIATION, as an Increasing Lender and
Administrative Agent
 
       

  by   /s/ ERIC R. HOLLINGSWORTH 

      Name: Eric R. Hollingsworth

      Title: Vice President

Signature Page to Incremental Assumption Agreement – Oil States International,
Inc.

 

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              SCOTIABANC INC.,
as an Increasing Lender
 
       

  by   /s/ WILLIAM E. ZARRETT

      Name: William E. Zarrett

      Title: Managing Director

Signature Page to Incremental Assumption Agreement – Oil States International,
Inc.

 

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              ROYAL BANK OF CANADA,
as an Increasing Lender
 
       

  by   /s/ LORNE GARTNER

      Name: Lorne Gartner

      Title: Authorized Signatory

Signature Page to Incremental Assumption Agreement – Oil States International,
Inc.

 

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              BANK ONE, NA,
as an Increasing Lender
 
       

  by   /s/ DIANNE L. RUSSELL

      Name: Dianne L. Russell

      Title: Director

Signature Page to Incremental Assumption Agreement – Oil States International,
Inc.

 

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              CALYON NEW YORK BRANCH,
as an Increasing Lender
 
       

  by   /s/ OLIVIER AUDEMARD

      Name: Olivier Audemard

      Title: Managing Director

Signature Page to Incremental Assumption Agreement – Oil States International,
Inc.

 

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              CREDIT SUISSE FIRST BOSTON,
acting through its Cayman Islands Branch
as an Increasing Lender
 
       

  by   /s/ JAMES MORAN

      Name: James Moran

      Title: Director      
 
       

  by   /s/ DENISE ALVAREZ

      Name: Denise Alvarez

      Title: Associate

Signature Page to Incremental Assumption Agreement – Oil States International,
Inc.

 

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              THE TORONTO-DOMINION BANK,
as an Increasing Lender
 
       

  by   /s/ STEPHEN D. WANNAMAKER

      Name: Stephen D. Wannamaker

      Title: Vice President, Credit Risk Management

Signature Page to Incremental Assumption Agreement – Oil States International,
Inc.

 

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              SOUTHWEST BANK OF TEXAS, N.A.,
as an Increasing Lender
 
       

  by   /s/ ROSS BARTLEY

      Name: Ross Bartley

      Title: Assistant Vice President

Signature Page to Incremental Assumption Agreement – Oil States International,
Inc.

 

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              BARCLAYS BANK PLC,
as an Increasing Lender
 
       

  by   /s/ L. PETER YETMAN

      Name: L. Peter Yetman

      Title: Director

Signature Page to Incremental Assumption Agreement – Oil States International,
Inc.

 

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              A - Z TERMINAL CORPORATION     GENERAL MARINE LEASING, LLC     HWC
ENERGY SERVICES, INC.     HWC LIMITED     HYDRAULIC WELL CONTROL, LLC     OIL
STATES MANAGEMENT, INC.     SOONER HOLDING COMPANY     SOONER INC.     SOONER
PIPE INC.     CAPSTAR DRILLING, LP, L.L.C.

  By:   HWC Energy Services, Inc.

      its general partner     CAPSTAR DRILLING, GP, L.L.C.

  By:   HWC Energy Services, Inc.
its sole member     SPECIALTY RENTAL TOOLS & SUPPLY, L.P.

  By:   HWC Energy Services, Inc.
its general partner     CAPSTAR DRILLING, L.P.

  By:   Capstar Drilling GP, L.L.C., its general partner

  By:   HWC Energy Services, Inc., its sole member     SPECIALTY RENTAL TOOLS &
SUPPLY, L.P.

  By:   Capstar Drilling GP, L.L.C., its general partner

  By:   HWC Energy Services, Inc., its sole member
 
       

  Each by:   /s/ CINDY B. TAYLOR

      Cindy B. Taylor, Senior Vice President
 
            OIL STATES SKAGIT SMATCO, LLC     OIL STATES INDUSTRIES, INC.
 
       

  Each by:   /s/ ROBERT W. HAMPTON

      Robert W. Hampton, Vice President and
Assistant Secretary

Signature Page to Incremental Assumption Agreement – Oil States International,
Inc.

 

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              CROWN CAMP SERVICES, INC.
 
            By:   /s/ MARK MENARD

      Mark Menard,

      Chief Financial Officer and Treasurer
 
            PTI GROUP INC.
 
            By:   /s/ MARK MENARD

      Mark Menard,

      Chief Financial Officer and Treasurer

Signature Page to Incremental Assumption Agreement – Oil States International,
Inc.

 

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Schedule 1

U.S. Commitments

                      Existing U.S.   New U.S. U.S. Lenders

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  Commitment

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  Commitment

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Wells Fargo Bank Texas, National Association
  $ 35,000,000     $ 41,209,937.14  
Royal Bank of Canada
  $ 15,000,000     $ 18,033,848.31  
Hibernia National Bank
  $ 25,000,000     $ 25,000,000.00  
Bank One, NA
  $ 15,000,000     $ 17,082,500.00  
Calyon New York Branch
  $ 25,000,000     $ 28,970,111.02  
Scotiabanc Inc.
  $ 5,000,000     $ 5,694,444.44  
Credit Suisse First Boston
  $ 10,000,000     $ 11,388,888.89  
Southwest Bank of Texas, N.A.
  $ 15,000,000     $ 19,663,302.57  
The Toronto-Dominion Bank
  $ 5,000,000     $ 5,956,967.63  
Bank of Scotland
  $ 15,000,000     $ 15,000,000.00  
Barclays Bank PLC
  $ 15,000,000     $ 17,000,000.00  
 
   

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TOTAL
  $ 180,000,000     $ 205,000,000.00  
 
   

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