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Exhibit 99.1
 (GREY WOLF LOGO)
    
    Pr e s s     Re l e a s e
 Contact:
David
W. Wehlmann
Executive Vice President & Chief Financial Officer
 
 AMEX SYMBOL: GW
 FOR IMMEDIATE RELEASE: HOUSTON, TEXAS  AUGUST 1, 2007, GREY WOLF, INC. ANNOUNCES OPERATING
RESULTS FOR THE QUARTER ENDED JUNE 30, 2007 AND THE PURCHASE OF TWO OPERATING RIGS
      
 
 GREY WOLF, INC.      www.gwdrilling.com




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GREY WOLF, INC.  PRESS RELEASE  AUGUST 1, 2007
        http://www.gwdrilling.com
  
 
 GREY WOLF, INC.      www.gwdrilling.com




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GREY WOLF, INC.  PRESS RELEASE  AUGUST 1, 2007
    
 
 GREY WOLF, INC.      www.gwdrilling.com




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GREY WOLF, INC.  PRESS RELEASE  AUGUST 1, 2007
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006(In thousands, except per share amounts)(Unaudited)Revenues
    
    $
    227,520
    
    
    $
    239,590
    
    
    $
    469,533
    
    
    $
    462,469Costs and expenses:Drilling operations
    
    
    132,307
    
    
    
    129,285
    
    
    
    253,260
    
    
    
    252,145Depreciation and amortization
    
    
    22,397
    
    
    
    18,199
    
    
    
    43,811
    
    
    
    35,347General and administrative
    
    
    7,159
    
    
    
    5,862
    
    
    
    14,558
    
    
    
    11,179Gain on the sale of assets
    
    
    (76
    )
    
    
    (22
    )
    
    
    (129
    )
    
    
    (9,537
    )Gain on insurance proceeds
    
    
    
    
    
    
    (4,159
    )
    
    
    
    
    
    
    (4,159
    )Total costs and expenses
    
    
    161,787
    
    
    
    149,165
    
    
    
    311,500
    
    
    
    284,975Operating income (loss)
    
    
    65,733
    
    
    
    90,425
    
    
    
    158,033
    
    
    
    177,494Other income (expense):Interest income
    
    
    3,593
    
    
    
    3,065
    
    
    
    6,752
    
    
    
    5,181Interest expense
    
    
    (3,438
    )
    
    
    (3,367
    )
    
    
    (6,930
    )
    
    
    (6,636
    )Other income (expense), net
    
    
    155
    
    
    
    (302
    )
    
    
    (178
    )
    
    
    (1,455
    )Net income (loss) before income taxes
    
    
    65,888
    
    
    
    90,123
    
    
    
    157,855
    
    
    
    176,039Income taxes expense (benefit):Current
    
    
    17,307
    
    
    
    28,398
    
    
    
    44,287
    
    
    
    57,298Deferred
    
    
    6,873
    
    
    
    3,810
    
    
    
    13,282
    
    
    
    6,577Total income tax expense (benefit)
    
    
    24,180
    
    
    
    32,208
    
    
    
    57,569
    
    
    
    63,875Net income applicable to common shares
    
    $
    41,708
    
    
    $
    57,915
    
    
    $
    100,286
    
    
    $
    112,164Net income per common share: (1)Basic
    
    $
    0.23
    
    
    $
    0.30
    
    
    $
    0.55
    
    
    $
    0.58Diluted
    
    $
    0.19
    
    
    $
    0.25
    
    
    $
    0.46
    
    
    $
    0.49Weighted average common shares outstanding:Basic
    
    
    183,009
    
    
    
    192,475
    
    
    
    183,016
    
    
    
    192,508Diluted
    
    
    226,734
    
    
    
    236,748
    
    
    
    226,655
    
    
    
    236,374
 Three Months EndedJune 30,2007
    
    
    2006Marketed Rigs at June 30
    
    
    120
    
    
    
    112Average Rigs Working:Ark-La-Tex
    
    
    25
    
    
    
    23Gulf Coast
    
    
    24
    
    
    
    24South Texas
    
    
    27
    
    
    
    28Rocky Mountain
    
    
    13
    
    
    
    16Mexico
    
    
    
    
    
    
    Mid Continent
    
    
    15
    
    
    
    17Total Average Rigs Working (2)
    
    
    104
    
    
    
    108
 
 (1)
    
    Please see Computation of Earnings Per Share included in this release.(2)
    
    For the week ending July 26, 2007, the Company averaged 104 rigs working. 
 
 GREY WOLF, INC.      www.gwdrilling.com




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GREY WOLF, INC.  PRESS RELEASE  AUGUST 1, 2007
 Operating data comparison for the three months ended June 30, 2007 and 2006.
 Three Months Ended
    
    
    Three Months EndedJune 30, 2007
    
    
    June 30, 2006Daywork
    
    
    Turnkey
    
    
    
    
    
    
    Daywork
    
    
    TurnkeyOperations
    
    
    Operations(1)
    
    
    Total
    
    
    Operations
    
    
    Operations(1)
    
    
    Total(Dollars in thousands except averages per rig day worked)(Unaudited)Rig days worked
    
    
    8,715
    
    
    
    761
    
    
    
    9,476
    
    
    
    8,679
    
    
    
    1,120
    
    
    
    9,799Contract drilling revenues
    
    $
    186,225
    
    
    $
    41,295
    
    
    $
    227,520
    
    
    $
    178,253
    
    
    $
    61,337
    
    
    $
    239,590Drilling operating expenses
    
    
    (100,762
    )
    
    
    (31,545
    )
    
    
    (132,307
    )
    
    
    (89,935
    )
    
    
    (39,350
    )
    
    
    (129,285
    )General and administrative
expenses
    
    
    (6,659
    )
    
    
    (500
    )
    
    
    (7,159
    )
    
    
    (5,213
    )
    
    
    (649
    )
    
    
    (5,862
    )Interest income
    
    
    3,303
    
    
    
    290
    
    
    
    3,593
    
    
    
    2,714
    
    
    
    351
    
    
    
    3,065Gain on sale of assets
    
    
    72
    
    
    
    4
    
    
    
    76
    
    
    
    19
    
    
    
    3
    
    
    
    22Gain on insurance proceeds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,675
    
    
    
    484
    
    
    
    4,159EBITDA
    
    $
    82,179
    
    
    $
    9,544
    
    
    $
    91,723
    
    
    $
    89,513
    
    
    $
    22,176
    
    
    $
    111,689Average per rig day worked:Contract drilling revenue
    
    $
    21,368
    
    
    $
    54,264
    
    
    $
    24,010
    
    
    $
    20,538
    
    
    $
    54,765
    
    
    $
    24,450EBITDA
    
    
    9,430
    
    
    
    12,541
    
    
    
    9,680
    
    
    
    10,314
    
    
    
    19,800
    
    
    
    11,398
 
 (1)
    
    Turnkey operations include the results from turnkey and footage contracts. Operating data comparison for the six months ended June 30, 2007 and 2006.
 Six Months Ended
    
    
    Six Months EndedJune 30, 2007
    
    
    June 30, 2006Daywork
    
    
    Turnkey
    
    
    
    
    
    
    Daywork
    
    
    TurnkeyOperations
    
    
    Operations(1)
    
    
    Total
    
    
    Operations
    
    
    Operations(1)
    
    
    Total(Dollars in thousands except averages per rig day worked)(Unaudited)Rig days worked
    
    
    18,017
    
    
    
    1,380
    
    
    
    19,397
    
    
    
    17,386
    
    
    
    2,200
    
    
    
    19,586Current drilling revenues
    
    $
    393,589
    
    
    $
    75,944
    
    
    $
    469,533
    
    
    $
    342,620
    
    
    $
    119,849
    
    
    $
    462,469Drilling operating expenses
    
    
    (200,625
    )
    
    
    (52,635
    )
    
    
    (253,260
    )
    
    
    (174,416
    )
    
    
    (77,729
    )
    
    
    (252,145
    )General and administrative
expenses
    
    
    (13,617
    )
    
    
    (941
    )
    
    
    (14,558
    )
    
    
    (9,954
    )
    
    
    (1,225
    )
    
    
    (11,179
    )Interest income
    
    
    6,264
    
    
    
    488
    
    
    
    6,752
    
    
    
    4,596
    
    
    
    585
    
    
    
    5,181Gain on sale of assets
    
    
    110
    
    
    
    19
    
    
    
    129
    
    
    
    8,487
    
    
    
    1,050
    
    
    
    9,537Gain on insurance proceeds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,675
    
    
    
    484
    
    
    
    4,159EBITDA
    
    $
    185,721
    
    
    $
    22,875
    
    
    $
    208,596
    
    
    $
    175,008
    
    
    $
    43,014
    
    
    $
    218,022Average per rig day worked:Contract drilling revenue
    
    $
    21,845
    
    
    $
    55,032
    
    
    $
    24,206
    
    
    $
    19,707
    
    
    $
    54,477
    
    
    $
    23,612EBITDA
    
    
    10,308
    
    
    
    16,576
    
    
    
    10,754
    
    
    
    10,066
    
    
    
    19,552
    
    
    
    11,132
 
 (1)
    
    Turnkey operations include the results from turnkey and footage contracts. 
 
 GREY WOLF, INC.      www.gwdrilling.com




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GREY WOLF, INC.  PRESS RELEASE  AUGUST 1, 2007
 Reconciliation of
Earnings before interest expense, taxes, depreciation
and amortization (EBITDA) to net income
(loss) applicable to common shares
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    March 31,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,2007
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Earnings before interest
expense, taxes,
depreciation,
and amortization
    
    $
    91,723
    
    
    $
    116,873
    
    
    $
    111,689
    
    
    $
    208,596
    
    
    $
    218,022Depreciation and
amortization
    
    
    (22,397
    )
    
    
    (21,414
    )
    
    
    (18,199
    )
    
    
    (43,811
    )
    
    
    (35,347
    )Interest expense
    
    
    (3,438
    )
    
    
    (3,492
    )
    
    
    (3,367
    )
    
    
    (6,930
    )
    
    
    (6,636
    )Total income tax
(expense)/benefit
    
    
    (24,180
    )
    
    
    (33,389
    )
    
    
    (32,208
    )
    
    
    (57,569
    )
    
    
    (63,875
    )Net income (loss)
applicable
to common shares
    
    $
    41,708
    
    
    $
    58,578
    
    
    $
    57,915
    
    
    $
    100,286
    
    
    $
    112,164
 June 30,
    
    
    December 31,2007
    
    
    2006(Unaudited)(In thousands)Condensed Balance Sheet Data:Cash and cash equivalents
    
    $
    291,729
    
    
    $
    229,773Restricted cash
    
    
    837
    
    
    
    817Other current assets
    
    
    197,727
    
    
    
    221,256Total current assets
    
    
    490,293
    
    
    
    451,846Net property and equipment
    
    
    696,068
    
    
    
    608,136Other assets
    
    
    16,969
    
    
    
    27,002Total assets
    
    $
    1,203,330
    
    
    $
    1,086,984Current liabilities
    
    $
    138,258
    
    
    $
    147,082Contingent convertible senior notes
    
    
    275,000
    
    
    
    275,000Other long term liabilities
    
    
    15,272
    
    
    
    9,877Deferred income taxes
    
    
    143,859
    
    
    
    121,231Shareholders equity
    
    
    630,941
    
    
    
    533,794Total liabilities and equity
    
    $
    1,203,330
    
    
    $
    1,086,984
 
 
 GREY WOLF, INC.      www.gwdrilling.com




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GREY WOLF, INC.  PRESS RELEASE  AUGUST 1, 2007
 Computation of Earnings Per Share
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Numerator:Net income
    
    $
    41,708
    
    
    $
    57,915
    
    
    $
    100,286
    
    
    $
    112,164Add interest expense on contingent convertible
senior notes, net of related tax effects (1)
    
    
    2,059
    
    
    
    2,035
    
    
    
    4,135
    
    
    
    3,937Adjusted net income  diluted
    
    $
    43,767
    
    
    $
    59,950
    
    
    $
    104,421
    
    
    $
    116,101Denominator:Weighted average number of shares
outstanding  basic
    
    
    183,009
    
    
    
    192,475
    
    
    
    183,016
    
    
    
    192,508Effect of dilutive securities:Options  treasury stock method
    
    
    740
    
    
    
    1,204
    
    
    
    715
    
    
    
    1,048Restricted stock
    
    
    528
    
    
    
    612
    
    
    
    467
    
    
    
    361Contingent convertible senior notes (1)
    
    
    42,457
    
    
    
    42,457
    
    
    
    42,457
    
    
    
    42,457Weighted average common shares
outstanding  diluted
    
    
    226,734
    
    
    
    236,748
    
    
    
    226,655
    
    
    
    236,374Earnings Per Share:Basic
    
    $
    0.23
    
    
    $
    0.30
    
    
    $
    0.55
    
    
    $
    0.58Diluted
    
    $
    0.19
    
    
    $
    0.25
    
    
    $
    0.46
    
    
    $
    0.49
 
 (1)
    
    Please see our latest quarterly report on Form 10-Q for a description of our contingent convertible notes. 
 
 GREY WOLF, INC.      www.gwdrilling.com