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                                                                   EXHIBIT 10.18

                            ASSET PURCHASE AGREEMENT

         THIS ASSET PURCHASE AGREEMENT ("Agreement") is made and entered into as
of the 10th day of February 2000, by and between WILLIAM K. DURHAM d/b/a TRINITY
SERVICES ("Seller") and SIERRA WELL SERVICE, INC., a Delaware corporation
("Purchaser").

                                    RECITALS:

         A. Seller owns and operates a well servicing business based out of
Kingsville, Texas (the "Business").

         B. Purchaser desires to purchase and acquire, and Seller is willing to
sell and transfer, certain of the properties and assets comprising the Business
as hereinbelow more particularly described.

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained in this Agreement, the parties agree as
follows:

                                    ARTICLE I

                                PURCHASE AND SALE

         1.01 TRANSFER OF ASSETS. At the Closing, which shall occur on the
Closing Date (both terms as defined in Section 7.01 hereof), and subject to the
terms and conditions of this Agreement, Seller shall grant, sell, convey,
assign, and deliver to Purchaser, and Purchaser shall pay for and accept from
Seller, all of the following assets:

                  (a)      All of the assets, properties, equipment,
                           inventories, and rights of every kind, character, and
                           description, whether tangible or intangible,
                           comprising or used in the business operated by Seller
                           under the name "Trinity Services," save and except
                           the Excluded Assets (hereinafter defined), all such
                           items being sold hereunder being hereinafter
                           collectively referred to as the "Assets." Seller is
                           not selling and the Assets shall not include (i) any
                           accounts receivable, notes receivable, deposits,
                           prepayments, bank accounts, cash, and other liquid
                           assets of a similar nature of Seller as of the
                           Closing Date, (ii) any contracts that by their terms
                           are non-assignable or for which Seller is unable to
                           obtain requisite consents to assignment at or prior
                           to Closing notwithstanding its good faith efforts or
                           that Purchaser may elect not to assume under the
                           terms of this Agreement, and (iii) any personal items
                           belonging to Seller or his family which are not
                           necessary to the operation of the Business, as listed
                           on EXHIBIT A attached hereto and made a part hereof
                           (items (i)-(iii) being hereinafter collectively
                           referred to as the "Excluded Assets").

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                  (b)      Without limiting the foregoing, the Assets shall
                           include the following assets, properties, and rights
                           of Seller:

                           (i)      all of the machinery, equipment, tools,
                                    vehicles, rolling stock, furnishings, goods,
                                    and other tangible personal property
                                    described on EXHIBIT B attached hereto and
                                    made a part hereof for all purposes,
                                    together with all attachments and accessions
                                    thereto and all associated personal property
                                    used or obtained for use in connection
                                    therewith (the "Tangible Personalty");

                           (ii)     all of Seller's rights under the service and
                                    supply contracts, leases, commitments, and
                                    agreements which may relate to the clients
                                    listed on EXHIBIT C attached hereto and made
                                    a part hereof for all purposes, together
                                    with any other such agreements entered into
                                    by Seller between the date hereof and the
                                    Closing in accordance with this Agreement,
                                    (collectively, the "Contracts") save and
                                    except any such Contracts which by their
                                    terms are non-assignable or for which Seller
                                    is unable to obtain requisite consents to
                                    assignment at or prior to Closing or which
                                    Purchaser may elect not to assume under the
                                    terms of this Agreement;

                           (iii)    any usable and salable raw materials and
                                    supplies of the Business as of the Closing
                                    (the "Inventory");

                           (iv)     all technologies, methods, formulations,
                                    data bases, patents, trademarks, trade
                                    secrets, know-how and other intellectual
                                    property used in the Business;

                           (v)      all existing and assignable guaranties and
                                    warranties (express or implied), if any,
                                    issued in connection with the purchase,
                                    lease, construction, alteration, and/or
                                    repair of any property included within the
                                    Assets;

                           (vi)     all information, files, records, data,
                                    plans, and recorded information, including
                                    supplier lists and customer lists, relating
                                    to the ownership and operation of the
                                    Business, provided that Seller shall be
                                    entitled to keep, retain and utilize copies
                                    of all accounting and tax records maintained
                                    by Seller;

                           (vii)    all goodwill of the Business and all right,
                                    title, and interest of Seller in and to the
                                    name "Trinity Services" and any other trade
                                    or assumed names used by Seller in the
                                    operation of the Business; and

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ASSET PURCHASE AGREEMENT                                                  PAGE 2

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                           (viii)   any and all other assets of Seller
                                    comprising or used in the Business other
                                    than Excluded Assets.

         1.02 PURCHASE PRICE. At the Closing, in accordance with the terms and
conditions of this Agreement and in reliance on the representations, warranties
and covenants of Seller, and subject to adjustment as hereinafter provided,
Purchaser shall purchase the Assets from Seller for a purchase price (the
"Purchase Price") of ONE MILLION SEVEN HUNDRED FORTY-NINE THOUSAND AND NO/100
DOLLARS ($1,749,000.00), together with the additional amounts described below,
payable as follows:

                  (a)      Purchaser shall pay the sum of $1,499,000.00 to
                           Seller in immediately available funds at the Closing;

                  (b)      Purchaser shall execute and deliver to Seller at
                           Closing its promissory note in the face principal
                           amount of $250,000.00, bearing interest and payable
                           to the order of Seller as therein provided, said note
                           to be substantially identical in form and substance
                           to that attached hereto as EXHIBIT D (the "Note") and
                           to be secured by a security agreement which covers
                           the Assets and is substantially identical in form and
                           substance to that attached hereto as EXHIBIT E (the
                           "Security Agreement");

                  (c)      Purchaser shall reimburse Seller for certain costs of
                           repairs and refurbishments as more particularly
                           provided in Section 5.12; and

                  (d)      Purchaser may pay certain Extension Fees (as defined
                           in Section 7.01) to the Escrow Agent (hereinafter
                           defined) and such Extension Fees shall either be
                           delivered to Seller as additional consideration for
                           this sale of the Assets or shall be otherwise
                           disposed of as provided in this Agreement and the
                           Escrow Agreement.

Seller and Purchaser hereby allocate the Purchase Price among the Assets as set
forth on SCHEDULE 1.02 attached hereto and made a part hereof and agree to be
bound by such allocation for federal income tax and all other purposes incident
to this agreement.

         1.03 ESCROW AGREEMENT/BREAK-UP FEE. Contemporaneously with the
execution and delivery of this Agreement, Seller, Purchaser, and The Kleberg
First National Bank (the "Escrow Agent") are entering into an escrow agreement
that is substantially identical in form and substance to that attached hereto as
EXHIBIT F, pursuant to which Purchaser shall deposit the sum of Fifty Thousand
and No/100 Dollars ($50,000) in immediately available funds with the Escrow
Agent for retention, investment, and ultimate disposition by the Escrow Agent as
provided therein. As used in this Agreement, "Break-Up Fee" shall mean and refer
to such $50,000 deposit, together with all interest accruing thereon while held
by the Escrow Agent. If the sale contemplated hereby is closed pursuant to the
terms of this Agreement, the Break-Up Fee shall be applied to a corresponding

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ASSET PURCHASE AGREEMENT                                                  PAGE 3

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amount of the Purchase Price payable by Purchaser to Seller at the Closing. The
Break-Up Fee shall otherwise be applied, remitted, or paid as elsewhere provided
in this Agreement and the Escrow Agreement.

         1.04 WARRANT. As a material consideration of this Agreement to Seller,
upon the occurrence of any Sierra IPO (as defined in Section 7.01), Purchaser
shall issue to Seller a warrant for the purchase of common stock in Seller that
is substantially identical in form and substance to that attached hereto as
EXHIBIT G (the "Warrant"). The number of shares of common stock that is subject
to the Warrant shall be determined by dividing 250,000 by the share price at
which common stock is issued in any Sierra IPO. Seller shall have the option and
right to offset any indebtedness owing by Purchaser to Seller under the Note
against the purchase price payable by Seller to Purchaser in exercising its
rights under the Warrant.

         1.05 ASSUMED LIABILITIES. At the Closing, Purchaser shall assume and
agree to pay, discharge, or perform, as appropriate, all liabilities and
obligations of Seller arising following the Closing Date under only any
Contracts which Purchaser elects to assume pursuant to this Agreement and for
which Seller obtains requisite consents to assignment and assumption by
Purchaser.

         1.06 LIABILITIES NOT ASSUMED. Except as expressly provided in Section
1.05 hereof, Purchaser does not assume or agree hereunder to pay, perform, or
discharge any debt, obligation, tax, or liability, known or unknown, contingent
or otherwise, of Seller of any kind or nature whatsoever. Without limiting the
foregoing, in no event shall Purchaser assume or incur any liability or
obligation under this Agreement or otherwise in respect of any of the following:

                  (a)      any claim for injury to person or property,
                           regardless of when made or asserted, which arises
                           out of or is based upon any express or implied
                           representation, warranty, agreement, or guarantee
                           made by Seller, or alleged to have been made by
                           Seller, or which is imposed or asserted to be imposed
                           by operation of law, in connection with any service
                           performed or product sold or leased by or on behalf
                           of Seller or arising from events occurring on or
                           prior to the Closing Date or any action or inaction
                           of Seller;

                  (b)      any federal, state, or local income or other tax
                           payable with respect to the business, assets,
                           properties or operations of Seller or any member of
                           any affiliated group of which Seller is a member, or
                           incident to or arising as a consequence of the
                           negotiation or consummation by Seller of this
                           Agreement and the transaction contemplated hereby,
                           save and except: (i) any applicable property taxes
                           for calendar year 2000 which will be prorated by the
                           parties as of the Closing Date with an appropriate
                           credit to Purchaser at the Closing, and (ii) any
                           sales or transfer taxes resulting from the
                           consummation of this transaction, which will be the
                           sole responsibility of Purchaser;

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ASSET PURCHASE AGREEMENT                                                  PAGE 4

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                  (c)      any liability or obligation arising prior to the
                           Closing Date under any law, ordinance, or
                           governmental or regulatory rule or regulation,
                           whether federal, state, or local, to which Seller or
                           Seller's business operations, assets, or properties
                           are subject relating to pollution or protection of
                           the environment;

                  (d)      any liability or obligation arising prior to or as a
                           result of the Closing to any employees, agents, or
                           independent contractors of Seller, whether or not
                           employed by Purchaser after the Closing Date, or
                           under any benefit arrangement with respect thereto,
                           including any obligations of Seller under any defined
                           benefit plan, employee benefit plan, or severance
                           plan;

                  (e)      any liability or obligation of Seller incurred in
                           connection with the negotiation, preparation, and
                           execution of this Agreement and the transactions
                           contemplated hereby, including fees and expenses of
                           counsel, accountants, and other professionals, except
                           as specifically provided in Section 6.02(c).

                                   ARTICLE II

                    REPRESENTATIONS AND WARRANTIES OF SELLER

         Seller represents, warrants, and covenants to and with Purchaser as of
the date hereof and the Closing Date, as follows:

         2.01 AUTHORITY; ENFORCEABILITY. Seller has full power, authority, and
legal right to enter into this Agreement and to consummate the transactions
provided for herein. All actions on the part of Seller necessary to consummate
the transaction contemplated by this Agreement have been duly taken as required
by applicable law and any applicable agreements. This Agreement has been, and
the other agreements, documents, and instruments required to be delivered by
Seller in accordance with the provisions hereof have been or will be, duly
executed and delivered by Seller and constitute (or will at Closing constitute)
the valid and binding obligations of Seller, enforceable against Seller in
accordance with their terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium, or similar laws now or
hereafter in effect relating to or limiting creditors' rights or by legal
principles of general applicability governing the availability of equitable
remedies.

         2.02 ABSENCE OF VIOLATION OR CONFLICTS. To the best of Seller's
knowledge, the execution, delivery and performance of the transactions
contemplated by this Agreement by Seller do not and will not (a) violate,
conflict with, or result in the breach of any term, condition, or provision of,
or require the consent of any other person under, (i) any law, ordinance, or
governmental rule or regulation known to Seller and to which Seller, the Assets,
or the Business is subject, (ii) any judgment, order, writ, injunction, decree,
or award of any court, arbitrator, or governmental or

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ASSET PURCHASE AGREEMENT                                                  PAGE 5

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regulatory official, body, or authority which is known to Seller and which is
applicable to Seller, the Assets, or the Business, (iii) any mortgage,
indenture, or other instrument, document, or understanding, oral or written, to
which Seller is a party, by which Seller may have rights, or by which any of the
Assets or the Business may be bound or affected, and (b) give any party with
rights thereunder the right to terminate, modify, accelerate, or otherwise
change the existing rights or obligations of Seller thereunder. To the best of
Seller's knowledge, no authorization, approval, or consent of, and no
registration or filing with, any governmental or regulatory official, body, or
authority is required in connection with the execution, delivery or performance
of this Agreement by Seller.

         2.03 TITLE TO ASSETS. Seller has (or will have at Closing) good and
marketable title to all the Assets, free and clear of all mortgages, liens,
pledges, security interests, charges, claims, restrictions, and other
encumbrances and defects of title of any nature whatsoever, except for (i) liens
for current ad valorem or similar taxes which are not yet due and payable and
(ii) required consents to assignment of the Contracts (collectively, the
"Permitted Encumbrances").

         2.04 CONTRACTS. To the best of Seller's knowledge, Seller is not in
material default (nor is there any event which with notice or lapse of time or
both would constitute a material default) under any of the Contracts.

         2.05 COMPLIANCE WITH LAW; AUTHORIZATIONS. To the best of Seller's
knowledge, Seller has complied with each, and is not in violation of any, law,
ordinance, or governmental or regulatory rule or regulation, whether federal,
state, local or foreign, to which Seller and Seller's business, operations,
assets, and properties are subject ("Regulations"). To the best of Seller's
knowledge, Seller owns, holds, possesses, or lawfully uses in the operation of
the Assets and the Business all licenses, permits, easements, rights,
applications, filings, registrations and other authorizations ("Authorizations")
which are in any manner necessary for such ownership and use by Seller, free and
clear of all liens, charges, restrictions, and encumbrances and in compliance
with all Regulations. To the best of Seller's knowledge, Seller is not in
default, nor has it received any notice of any claim of default, with respect to
any such Authorization.

         2.06 LITIGATION. No litigation, including any arbitration,
investigation, or other proceeding of or before any court, arbitrator or
governmental or regulatory official, body, or authority, is pending in which
Seller is a party and in which Seller has been served with process or otherwise
notified or, to the knowledge of Seller, threatened against Seller which relates
to the Assets, the Business, or the transactions contemplated by this Agreement,
nor does Seller know of any reasonably likely basis for any such litigation,
arbitration, investigation, or proceeding, the result of which could materially
adversely affect the Assets, the Business, or the transaction contemplated
hereby. Seller is neither party to nor subject to the provisions of any
judgment, order, writ, injunction, decree, or award of any court, arbitrator, or
governmental or regulatory official, body, or authority which may materially
adversely affect Seller, the Assets, the Business, or the transaction
contemplated hereby.

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ASSET PURCHASE AGREEMENT                                                  PAGE 6

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         2.07 ENVIRONMENTAL MATTERS. There is no civil, criminal or
administrative action, suit, demand, claim, hearing, notice or demand letter,
notice of violation, investigation of which Seller has been notified, or
proceeding pending or, to the knowledge of Seller, threatened, against Seller in
connection with the ownership, use, or operation of the Assets or the Business
or with the transaction contemplated hereby, relating in any way to
Environmental Laws and Regulations (hereinafter defined).

         As used herein, "Environmental Laws and Regulations" shall include, but
not be limited to:

                  (i)      the Comprehensive Environmental Response,
                           Compensation and Liability Act of 1980, 42
                           U.S.C.ss.ss.9601-9657, and any amendments thereto;

                  (ii)     the Resource Conservation and Recovery Act, 42
                           U.S.C.ss.ss.6901-6987 and any amendments thereto;

                  (iii)    Safe Drinking Water Act, 42 U.S.C.ss.300(f) et seq.
                           and any amendments thereto;

                  (iv)     Any and all environmental acts, statutes, and other
                           laws of the State of Texas; and

                  (v)      Any and all regulations, rules, and administrative
                           orders issued or promulgated pursuant to any of the
                           foregoing.

                  (b)      Seller agrees to cooperate reasonably with Purchaser
                           in connection with Purchaser's application for the
                           transfer, renewal or issuance of any permits,
                           licenses, approvals, or other authorizations or to
                           satisfy any regulatory requirements involving the
                           transfer of the Business to Purchaser.

         2.08 TAX AND OTHER RETURNS AND REPORTS. Seller has not received any
notice of assessment or proposed assessment in connection with any of the
Assets or the Business and, to the knowledge of Seller, there are no pending tax
examinations or tax claims asserted against any of the Assets or the Business.
There are no tax liens (other than any lien for current ad valorem taxes not yet
due and payable) on any of the Assets or the Business.

         2.09 CONSENTS. Seller is not aware of any consent, approval, order, or
authorization of, or registration, qualification, designation, declaration, or
filing with, any federal, state or local governmental authority or any other
person on the part of Seller which is required in connection with the completion
of the transactions contemplated by this Agreement and the operation by
Purchaser of the Business in the manner in which it is currently conducted.

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ASSET PURCHASE AGREEMENT                                                  PAGE 7

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         2.10 FINANCIAL MATTERS.

                  (a) Financial Statements. Seller has previously furnished to
Purchaser unaudited financial statements of Seller for the years ended December
31, 1998 and 1997 and for the interim period ended September 30, 1999. These
financial statements have been prepared in a manner that is consistent with the
books and records of Seller and present fairly the information contained therein
in the same manner as such information has been historically reported by Seller.

                  (b) Liabilities. To the best of Seller's knowledge, except for
the liabilities reflected on the financial statements specified above, there are
no, and on the Closing Date will be, no other material liabilities of any
nature, whether accrued, absolute, contingent, or otherwise and whether due or
to become due, or arising out of transactions entered into, or any state of
facts existing, prior to the Closing Date which will encumber the Assets or
impair the use, value, or ownership thereof by the Purchaser following the
Closing. There has been no material adverse change in the financial condition,
results of operations, assets, liabilities, business or prospects of the
Business since September 30, 1999, except that certain pay raises, as previously
disclosed by Seller to Purchaser in writing, have been provided to employees of
Seller in the ordinary course of Seller's business.

         2.12 ABSENCE OF CERTAIN CHANGES. Since September 30, 1999, except as
disclosed in writing to Purchaser or as otherwise permitted or contemplated by
this Agreement, there has not been (i) any amendment, termination, or
revocation, or threatened termination, revocation or modification of any
license, permit, or franchise required for the continued operation of the
Business; (ii) any sale or transfer of the Assets; (iii) any pledge or
subjection to lien, charge or encumbrance of any kind, of, on or affecting any
of the Assets; or (iv) any material damage, destruction, or loss of or to the
Assets, whether or not covered by insurance.

         2.13 OTHER. No representation or warranty by the Seller in this
Agreement and no written information furnished by Seller to Purchaser pursuant
to or in connection with the transactions contemplated by this Agreement
contains as of the date made any untrue statement of a material fact or omits to
state a material fact necessary to make the statements herein or therein not
misleading.

                                   ARTICLE III

                   PURCHASER'S REPRESENTATIONS AND WARRANTIES

         Purchaser hereby represents and warrants to Seller as of the date
hereof and the Closing Date, as follows:

         3.01 ORGANIZATION. Purchaser is a corporation duly organized and
existing in good standing under the laws of the State of Delaware and has the
power and authority to carry on its business as contemplated by this Agreement.

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ASSET PURCHASE AGREEMENT                                                  PAGE 8

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         3.02 AUTHORITY. Purchaser has full power, authority, and legal right to
enter into this Agreement and to consummate the transaction provided for herein.
The execution and delivery of this Agreement and the other instruments specified
herein, and the consummation of the transaction provided for herein, by
Purchaser have been duly and validly authorized by all necessary action on the
part of Purchaser and are in compliance with applicable law. This Agreement has
been, and the other agreements, documents and instruments required to be
delivered by Purchaser in accordance with the provisions hereof have been or
will be, duly executed and delivered by Purchaser and constitute (or will at
Closing constitute) the valid and binding obligations of Purchaser, enforceable
against Purchaser in accordance with their terms, except as such enforcement may
be limited by bankruptcy, insolvency, reorganization, moratorium, or similar
laws now or hereafter in effect relating to or limiting creditors' rights or by
legal principles of general applicability governing the availability of
equitable remedies.

         3.03 ABSENCE OF VIOLATIONS OR CONFLICTS. The execution, delivery, and
performance of the transaction contemplated by this Agreement by Purchaser do
not and will not violate, conflict with, or result in the breach of any term,
condition, or provision of, or require the consent of any other person under,
(a) any law, ordinance, or governmental rule or regulation known to Purchaser
and to which Purchaser is subject, (b) any judgment, order, writ, injunction,
decree, or award of any court, arbitrator, or governmental or regulatory
official, body, or authority which is applicable to Purchaser (c) the governing
documents of Purchaser or any securities issued by Purchaser, or (d) any
mortgage, indenture, or other instrument, document, or understanding, oral or
written, to which Purchaser is a party or by which Purchaser may have rights. No
authorization, approval, or consent of, and no registration or filing with, any
governmental or regulatory official, body, or authority is required in
connection with the execution, delivery or performance of this Agreement by
Purchaser

         3.04 OTHER. No representation or warranty by Purchaser in this
Agreement and no written information furnished by Purchaser to Seller pursuant
to or in connection with the transactions contemplated by this Agreement
contains as of the date made any untrue statement of a material fact or omits to
state a material fact necessary to make the statements herein or therein not
misleading.

         3.05 DUE DILIGENCE. Upon Closing hereunder, Purchaser will have
conducted such examinations, inquiries, and other due diligence as Purchaser
deems necessary and appropriate to conclude the transaction contemplated hereby
in light of the express representations, warranties, and covenants of Seller
under this Agreement. Purchaser is not presently aware of any material
inaccuracy of any of Seller's representations and warranties in this Agreement.

                                   ARTICLE IV

                          SURVIVAL AND INDEMNIFICATION

         4.01 SURVIVAL. The parties agree that all of the representations,
warranties and covenants contained in this Agreement or in any document,
certificate, instrument, schedule or exhibit delivered

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ASSET PURCHASE AGREEMENT                                                  PAGE 9

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pursuant to this Agreement shall survive the Closing without time limitation,
except that (a) the representations and warranties of Seller in Sections 2.04 -
2.13 and the representations and warranties of Purchaser in Section 3.04 shall
survive only for a period of one (1) year following the Closing unless the party
claiming a breach shall assert the same by written notice to the other party
within such one-year period and (b) Seller will have no liability for the breach
or inaccuracy of any of its representations or warranties under Article II of
this Agreement unless, prior to any termination or expiration of such
representations or warranties pursuant to the foregoing, Purchaser notifies
Seller in writing of the alleged breach or inaccuracy, specifying the factual
basis of the claim with reasonable certainty to the extent then known by
Purchaser and the amount of actual damages incurred by Purchaser as a result
thereof to the extent then known by Purchaser. Notwithstanding any provisions of
this Agreement to the contrary, (a) Seller shall have no liability for the
breach of any of its representations or warranties under Article II of this
Agreement unless the total of all damages incurred by Purchaser as a result
thereof exceeds $20,000; and (b) in no event shall Seller's liability for the
breach or inaccuracy of its representations and warranties under Article II of
this Agreement or for indemnification under Section 4.02(a) ever exceed the
principal sum of $250,000, exclusive of interest, attorneys' fees, and expenses
of litigation; provided, however, that such limitations shall be inapplicable to
any damages incurred or sustained by Purchaser as a consequence of the breach of
Seller's title covenants and warranties in Section 2.03 of this Agreement.

         4.02 INDEMNIFICATION BY SELLER. Subject to the limitations of Section
4.01, Seller agrees to indemnify, hold harmless, and defend Purchaser after the
Closing Date against and in respect of any of the following matters which may be
asserted or established:

                  (a)      Any and all damages, losses, expenses, liabilities,
                           or deficiencies resulting from any breach of the
                           warranties, representations and covenants of Seller
                           contained in this Agreement or in any schedule
                           hereto;

                  (b)      Any and all liabilities, damages, losses, or expenses
                           incurred or paid by Purchaser as a result of the
                           nonpayment or assessment of taxes with respect to the
                           Assets or the Business attributable to periods prior
                           to and including the Closing Date;

                  (c)      Any and all damages, losses, expenses, liabilities,
                           or deficiencies incurred or paid by Purchaser as a
                           result of a claim of any kind arising from the
                           ownership or operation of the Assets or the Business
                           prior to and including the Closing Date (except for
                           those obligations and liabilities of Seller, if any,
                           that are expressly assumed by the Purchaser pursuant
                           to Section 1.05 hereof); and

                  (d)      All demands, assessments, judgments, costs, and
                           expenses (including reasonable legal fees and other
                           expenses of litigation, both at the trial and
                           appellate level) arising from or in connection with
                           any action, suit,

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ASSET PURCHASE AGREEMENT                                                 PAGE 10

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                           proceeding, or claim incident to any of the matters
                           indemnified in subparts (a)-(c) of this Section 4.02.

         4.03 INDEMNIFICATION BY PURCHASER. Subject to the limitations of
Section 4.01, Purchaser agrees to indemnify, hold harmless, and defend Seller
after the Closing Date against and in respect of any of the following matters
which may be asserted or established:

                  (a)      Any and all damages, losses, expenses, or
                           deficiencies resulting from any breach of the
                           warranties, representations and covenants of
                           Purchaser contained in this Agreement or in any
                           schedule hereto;

                  (b)      Any and all liabilities, damages, losses, or expenses
                           incurred or paid by Seller as a result of the
                           nonpayment of taxes with respect to the Assets or the
                           Business attributable to periods after the Closing
                           Date or any transfer taxes attributable to this
                           transaction as specified in Section 5.05;

                  (c)      Any and all damages, losses, expenses, liabilities,
                           or deficiencies incurred or paid by Seller as a
                           result of a claim of any kind arising from the
                           ownership or operation of the Assets or the Business
                           by Purchaser after the Closing Date; and

                  (d)      All demands, assessments, judgments, costs, and
                           expenses (including reasonable legal fees and other
                           expenses of litigation, both at the trial and
                           appellate level) arising from or in connection with
                           any action, suit, proceeding, or claim incident to
                           any of the foregoing.

                                    ARTICLE V

                                OTHER AGREEMENTS

         5.01 CONTINUING OPERATION OF BUSINESS. Seller hereby agrees, on and
after the date of this Agreement and until the Closing hereunder (except upon
the prior written consent of Purchaser and except as otherwise contemplated in
this Agreement or the exhibits or schedules hereto):

                  (a)      To operate the Business in the ordinary and regular
                           course and not to engage in any transaction or
                           activity or enter into any agreement or make any
                           commitment except in the ordinary and regular course
                           of business or enter into any material agreement or
                           make any material commitment;

                  (b)      To operate the Business in the same manner as
                           heretofore conducted, and not to institute any new
                           methods of processing, purchase, sale, lease,
                           management, accounting, or operation;

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ASSET PURCHASE AGREEMENT                                                 PAGE 11

<PAGE>   12

                  (c)      Except as otherwise specifically provided in Section
                           5.12, to maintain and repair the Assets, at Seller's
                           sole cost and expense, in the same manner as Seller
                           has heretofore maintained and repaired the same;

                  (d)      To maintain all leases, easements, rights-of-way,
                           permits, Contracts, and other rights necessary for
                           the operation of the Assets in full force and effect;

                  (e)      To use its best efforts to preserve the business
                           organization of the Business and to preserve its
                           relationship with customers, suppliers, and others
                           having business relations with it;

                  (f)      Not to make any sale or distribution of, or grant any
                           other interest in, the Assets, except for the sale of
                           inventory in the ordinary course of business;

                  (g)      Not to grant any increase in the compensation of the
                           employees of Seller, whether now or hereafter
                           payable; provided that in no event is anything in
                           this Agreement to be construed that Purchaser has
                           agreed to assume any of the Seller's obligations,
                           contractual or otherwise, with respect to any of the
                           Seller's employees;

                  (h)      To maintain in full force and effect all existing
                           policies of liability, casualty, and other insurance
                           presently maintained by Seller with respect to the
                           Assets and the Business, including, without
                           limitation, the policies described on attached
                           SCHEDULE 5.01(H).

         5.02 PURCHASER'S CONTINUING INSPECTION RIGHTS. Seller agrees that,
pending Closing, it will (a) provide or cause to be provided to Purchaser, or
its representatives, during normal business hours or otherwise, if necessary,
full access to all of its properties, assets, books, agreements, commitments and
records; (b) furnish Purchaser and its representatives with such information
concerning any of its operations and affairs as they may reasonably request; and
(c) furnish to Purchaser true copies of all financial and operating statements
of Seller.

         5.03 EXCLUSIVE DEALING. During the period from the date of this
Agreement through the Closing Date, Seller shall not, directly or indirectly,
encourage, initiate, or engage in discussions or negotiations with, or provide
any information to, or enter into any agreement to sell the Assets with, any
person, firm, company, or other entity, other than Purchaser.

         5.04 EMPLOYEES. Except as may be specifically provided in this
Agreement, Purchaser shall assume no liability for any agreements, arrangements,
commitments, policies, or understandings of any kind relating to employment,
compensation, or benefits for present or former employees of Seller prior to the
Closing Date, including, but not limited to, severance pay, retirement benefits,
accrued vacation pay, or benefits or medical claims incurred before the Closing
Date. Without limiting the foregoing, Seller shall bear the full cost and
expense of any severance expenses

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ASSET PURCHASE AGREEMENT                                                 PAGE 12

<PAGE>   13

and benefits which result from the termination of any employees of the Business
not hired by Purchaser or otherwise retained in Seller's employ. To the extent
Purchaser may elect to employ any current employees of Seller upon Closing, each
employee so employed by Purchaser upon Closing shall be eligible for
participation in Purchaser's current employee benefit programs with full credit
for length of service prior to Closing with the Company. Seller acknowledges and
agrees that the decision to hire any current employees of Seller is solely in
the discretion of Purchaser and that Purchaser has no obligation of any kind to
employ any of the existing employees of Seller following Closing.

         5.05 EXPENSES. Except as otherwise provided herein, each party hereto
shall pay its own expenses and costs incurred in connection with the negotiation
and consummation of this Agreement and the transaction contemplated hereby.
Purchaser shall pay all federal, state, and local sales, documentary and other
transfer taxes, if any, due as a result of the purchase, sale, or transfer of
the Assets.

         5.06 BROKERS. Each of the parties represents and warrants that it has
dealt with no broker or finder in connection with the transaction contemplated
by this Agreement, and insofar as it knows, no broker or other person is
entitled to any commission or finder's fee in connection with this transaction.
Each of the parties shall be solely responsible for any brokerage commissions or
finder's fees arising from this transaction based upon arrangements made by or
on behalf of such party and agrees to indemnify and hold the other party
harmless from any claims or liabilities (including reasonable attorneys' fees
and court costs) with respect thereto.

         5.07 LOSS. If, before the Closing Date, the Assets are destroyed, or if
there has been damage to the Assets which would cost in excess of $250,000 to
repair or replace, and such repair or replacement shall not have been completed
by the Closing Date to Purchaser's reasonable satisfaction, then Purchaser, at
its option, may either (a) proceed to Closing, in which event Seller shall
assign to Purchaser at Closing all insurance proceeds payable with respect to
such loss and Purchaser shall receive a credit at Closing against the Purchase
Price for any remaining sums necessary to effectuate such repairs (including,
without limitation, applicable deductibles) or (b) terminate this Agreement, in
which event the Break-Up Fee shall be immediately refunded to Purchaser and,
except as otherwise expressly provided in this Agreement, neither party shall
have any further rights or obligations hereunder. If, before the Closing Date,
there has been damage to the Assets which would cost $250,000 or less to repair
or replace, and such repair or replacement shall not have been completed by the
Closing Date to Purchaser's reasonable satisfaction, then the parties shall
remain obligated to close this transaction, but Purchaser shall be entitled to
an assignment at Closing of all insurance proceeds payable with respect to such
loss and shall additionally receive a credit at Closing against the Purchase
Price in an amount to be agreed upon by Purchaser and Seller for any remaining
sums necessary to effectuate such repairs (including, without limitation,
applicable deductibles). If Purchaser and Seller are unable to agree upon the
remaining sum necessary to effectuate repairs, they shall refer such
determination to Superior Auctioneers of San Antonio, Texas, or other mutually
acceptable equipment appraiser, whose decision shall be final, binding, and
conclusive as to and upon all concerned.

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ASSET PURCHASE AGREEMENT                                                 PAGE 13

<PAGE>   14

         5.08 ASSIGNMENT OF CONTRACTS. At least five (5) days prior to the
Closing Date, Seller shall provide a written listing and copies of all then
operative or effective Contracts to Purchaser. At or prior to Closing, Purchaser
shall notify Seller of those Contracts, if any, which Purchaser desires to
assume at Closing. If Purchaser does not issue such notification, Purchaser
shall be deemed to desire to assume all of the Contracts listed and provided by
Seller on its notification to Purchaser. Seller will use its best efforts to
procure any necessary consents for the assignment of all Contracts which
Purchaser desires to assume at the Closing. The failure of Seller,
notwithstanding such efforts, to secure any required consent to the assignment
of such Contracts shall not be a condition to Closing or a breach by Seller
hereunder.

         5.09 POST-CLOSING OPERATIONS BY SELLER. Purchaser acknowledges that
Seller will continue to operate its business following Closing for the limited
purposes of collecting accounts receivable and other obligations owed to it and
discharging any liabilities it might have. Following Closing, Seller may
continue to utilize the name "Trinity Services" in connection with the above-
specified activities and the winding up of its business and affairs, but for no
other purposes without the prior written consent of Purchaser. Any checks or
other payments received by Seller or Purchaser which are in payment of
receivables or other obligations owed to Seller shall be the property of Seller.
Any checks or other payments received by Seller or Purchaser which are in
payment of receivables or other obligations owed to Purchaser shall be the
property of Purchaser. Purchaser and Seller each agrees to remit any such
payments which are received by either of them and which are the property of the
other party to the other party promptly upon receipt of the same. Purchaser
further agrees that Seller may furnish notice to its vendors, suppliers, and
customers advising of the sale of the Assets to Purchaser and requesting such
vendors, suppliers, and customers to make payment of any obligations owed to
Seller directly to Seller following Closing, provided that Seller shall obtain
Purchaser's approval of its proposed form(s) of notification prior to any
mailing or other delivery of the same.

         5.10 INVESTMENT REPRESENTATIONS BY SELLERS. In connection with any
exercise of its rights under the Warrant and as matters which shall survive
Closing hereunder without time limitation, Seller expressly represents,
warrants, acknowledges, and agrees to and with Purchaser that:

                  (a)      any stock acquired by Seller pursuant to the Warrant
                           (the "Stock") may not have been registered under the
                           Securities Act of 1933 or any other state securities
                           laws (collectively, the "Securities Acts") because
                           Purchaser may or will issue the Stock in reliance
                           upon this Section 5.10 and the exemptions from the
                           registration requirements of the Securities Acts
                           providing for issuance of securities not involving a
                           public offering;

                  (b)      Seller will acquire any Stock for Seller's own
                           account, for investment, and not with a view to the
                           resale or distribution thereof;

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ASSET PURCHASE AGREEMENT                                                 PAGE 14

<PAGE>   15

                  (c)      Seller will not transfer, sell or offer for sale any
                           portion of the Stock unless there is an effective
                           registration or other qualification relating thereto
                           under the Securities Act of 1933 and under any
                           applicable state securities laws or unless the holder
                           of the Stock delivers to Purchaser an opinion of
                           counsel, satisfactory to Purchaser, that such
                           registration or other qualification under such Act
                           and applicable state securities laws is not required
                           in connection with such transfer, offer or sale;

                  (d)      Purchaser is under no obligation to register the
                           Stock or to assist Seller in complying with any
                           exemption from registration under the Acts if Seller
                           should at a later date wish to dispose of the Stock;

                  (e)      Prior to entering into this Agreement, Seller has
                           made an investigation of Purchaser and its business
                           and has obtained or had made available to Seller all
                           information with respect thereto which Seller needed
                           to make an informed decision to structure the
                           transactions contemplated hereby as provided in this
                           Agreement;

                  (f)      Seller possesses adequate experience and
                           sophistication as investors for the evaluation of the
                           merits and risks of investment in the Stock; and

                  (g)      Seller is an "accredited investor," as defined in
                           Regulation D as promulgated under the Securities Act
                           of 1933, as amended, (the "1933 Act").

         5.11 DISCLAIMER. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS
AGREEMENT, UPON CLOSING HEREUNDER, PURCHASER ACCEPTS THE ASSETS IN THEIR "AS IS,
WHERE IS" CONDITION, WITH ALL FAULTS, AND WITHOUT REPRESENTATION OR WARRANTY,
EXPRESS OR IMPLIED, AS TO CONDITION, MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, OR CONFORMITY TO MODELS OR SAMPLES.

         5.12 REIMBURSEMENT FOR CERTAIN CAPITAL EXPENDITURES. If this
transaction closes, Purchaser shall reimburse Seller at the Closing for the
out-of-pocket expenses incurred by Seller during negotiation of this transaction
which are specifically listed on attached SCHEDULE 5.12, together with any other
out-of-pocket expenses of a capital nature which are pre-approved by Purchaser
in writing and which may be incurred by Seller between the date hereof and the
Closing Date to increase the number of active well servicing units in the
Business from the number active as of the date of this Agreement or upon
maintenance or repairs of a capital nature incident to the refurbishing of any
of Seller's existing well servicing units.

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ASSET PURCHASE AGREEMENT                                                 PAGE 15

<PAGE>   16

                                   ARTICLE VI

                           TERMINATION AND ABANDONMENT

         6.01 TERMINATION AND ABANDONMENT. This Agreement may be terminated and
the purchase and sale of the Assets abandoned at any time prior to the Closing:

                  (a)      by mutual agreement of Seller and the Purchaser;

                  (b)      by Purchaser, if the conditions set forth in Section
                           7.02 and the deliveries required by Section 7.04
                           shall not have been complied with and performed in
                           any material respect and such noncompliance or
                           nonperformance shall not have been cured or
                           eliminated (or by its nature cannot be cured or
                           eliminated) on or before the Closing Date; and

                  (c)      by Seller, if the conditions set forth in Section
                           7.03 and the deliveries required by Section 7.05 have
                           not been complied with and performed in any material
                           respect and such noncompliance or nonperformance
                           shall not have been cured or eliminated (or by its
                           nature cannot be cured or eliminated) on or before
                           the Closing Date.

         6.02 RIGHTS AND OBLIGATIONS ON TERMINATION.

                  (a) If Purchaser fails or refuses to satisfy the conditions
set forth in Section 7.03(a) and (b) hereof and if Seller has timely satisfied
all the conditions to Purchaser's obligation to close hereunder and is not in
default hereunder, Seller, as its exclusive remedy therefor, shall be entitled
to receive the Break-Up Fee and any Extension Fees (as defined in Section 7.01)
as liquidated damages and not a penalty for Purchaser's breach hereof.

                  (b) If Seller fails or refuses to satisfy the conditions set
forth in Section 7.02(a) and (b) hereof and if Purchaser has timely satisfied
all the conditions to Seller's obligation to close hereunder and is not in
default hereunder, Purchaser shall be entitled to have the Break-Up Fee and any
Extension Fees refunded and, in addition, shall have the right to either (i)
bring claims for actual damages against the Seller for breaches of
representations, warranties, covenants, or agreements made in this Agreement or
in any instrument or document executed in connection herewith, subject to the
limitations of Section 4.01 hereof, or (ii) seek enforcement of this Agreement
at law or equity, including, without limitation, an action for specific
performance of the terms of this Agreement by Seller.

                  (c) Any provisions of this Agreement to the contrary
notwithstanding, if Purchaser exercises its right of termination due to
non-satisfaction of the condition set forth in Section 7.02(g) relating to
successful completion of the Sierra IPO, Seller shall be entitled to receive any
Extension Fees and, in addition, to be reimbursed from the Break-up Fee for all
fees and expenses incurred by Seller in connection with this transaction up to a
maximum of $20,000.00.

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ASSET PURCHASE AGREEMENT                                                 PAGE 16

<PAGE>   17

                  (d) Under no circumstances shall any party ever be entitled to
recover exemplary or punitive damages in any action for the construction or
enforcement of this Agreement or otherwise arising hereunder.

                                   ARTICLE VII

                                   THE CLOSING

         7.01 TIME, DATE AND PLACE OF CLOSING. Closing ("the Closing") of the
transaction contemplated hereby shall take place (a) at the offices of Purchaser
at 406 N. Big Spring in Midland, Texas, contemporaneously with or within thirty
(30) days following any successful completion through a national stock exchange
of an initial public offering of equity in Purchaser (the "Sierra IPO"), but in
no event later than February 28, 2000, said date to be at the unilateral
selection of Purchaser with at least ten (10) days advance notice to Seller, or
(b) at such other time and place as the parties may hereafter mutually agree in
writing. Notwithstanding the foregoing, Purchaser may unilaterally on one or
more occasions extend the Closing Date for up to four additional months from the
last day of February 2000 through the last day of June 2000 by depositing an
extension payment in the amount of $25,000 per month with the Escrow Agent on or
before the end of the calendar month for which such extension is desired (e.g.
on or before February 28, 2000 for an extension through March 31, 2000). As used
in this Agreement, "Extension Fees" shall mean and refer to each such $25,000
extension payment, together with all interest accruing thereon while held by the
Escrow Agent. If the sale contemplated hereby is closed pursuant to the terms of
this Agreement, the Extension Fees shall be paid to Seller at the Closing as
additional consideration for the sale of the Assets to Purchaser. The Extension
Fees shall otherwise be applied, remitted, or paid as elsewhere provided in this
Agreement and the Escrow Agreement. As used herein, "Closing Date" shall mean
and refer to the date upon which Closing is to occur under this Agreement, as
determined in accordance with the foregoing provisions of this Section 7.01.

         7.02 CONDITIONS TO OBLIGATIONS OF PURCHASER. The obligation of
Purchaser to close under this Agreement is subject to the fulfillment prior to
or at the Closing Date of each of the following conditions, any one or more of
which may be waived by Purchaser:

                  (a)      The representations, warranties and covenants of
                           Seller contained herein or otherwise delivered
                           pursuant hereto shall be true in all material
                           respects as of the date when made, shall be deemed to
                           be made again at and as of the Closing Date, and
                           shall be true at and as of the Closing Date;

                  (b)      Seller shall have performed and complied with all
                           agreements and conditions required by this Agreement
                           to be performed or complied with by Seller prior to
                           or at the Closing Date;

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ASSET PURCHASE AGREEMENT                                                 PAGE 17

<PAGE>   18

                  (c)      No material adverse change in the Business or in the
                           Assets shall have occurred between the date hereof
                           and the Closing Date;

                  (d)      No federal, state, or local governmental unit,
                           agency, body or authority with competent jurisdiction
                           over the subject matter shall have given official
                           written notice of its intention to institute
                           proceedings to prohibit the transaction contemplated
                           by this Agreement, or which would interfere with the
                           use of the Assets or the operation of the Business;

                  (e)      No judgment, order, or decree shall have been
                           rendered by any governmental authority and no action
                           shall have been instituted or threatened by any
                           person which has the effect of enjoining or which
                           seeks to enjoin the consummation of the transaction
                           contemplated by this Agreement;

                  (f)      All deliveries pursuant to Section 7.04 shall have
                           been made and shall be reasonably acceptable to
                           Purchaser; and

                  (g)      Purchaser shall have successfully consummated and
                           completed the Sierra IPO.

         7.03 CONDITIONS TO OBLIGATIONS OF SELLER. The obligation of Seller to
close under this Agreement is subject to the fulfillment prior to or at the
Closing Date of each of the following conditions, any one or more of which may
be waived by the Seller:

                  (a)      The representations, warranties, and covenants of
                           Purchaser contained herein or otherwise delivered
                           pursuant hereto shall be true as of the date when
                           made, shall be deemed to be made again at and as of
                           the Closing Date, and shall be true at and as of the
                           Closing Date;

                  (b)      Purchaser shall have performed and complied with all
                           agreements and conditions required by this Agreement
                           to be performed or complied with by Purchaser prior
                           to or at the Closing Date;

                  (c)      No federal, state, or local governmental unit,
                           agency, body, or authority with competent
                           jurisdiction over the subject matter shall have given
                           official written notice of its intention to institute
                           proceedings to prohibit the transaction contemplated
                           by this Agreement, or which would interfere with the
                           use of the Assets or the operation of the Business;
                           and

                  (d)      No judgment, order, or decree shall have been
                           rendered by any governmental authority and no action
                           shall have been instituted or threatened by any
                           person which has the effect of enjoining or which
                           seeks to enjoin the consummation of the transaction
                           contemplated by this Agreement.

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ASSET PURCHASE AGREEMENT                                                 PAGE 18

<PAGE>   19

         7.04 DELIVERIES BY SELLER AT THE CLOSING. At the Closing, Seller shall
execute, acknowledge, and/or deliver, as appropriate, to Purchaser the
following:

                  (a)      The certificate of Seller confirming the truth and
                           accuracy of all representations and warranties of
                           Seller under this Agreement as of the Closing Date
                           and the performance by Seller of all material
                           obligations required to be performed by Seller under
                           this Agreement at or prior to Closing;

                  (b)      Evidence that all consents necessary in connection
                           with this transaction have been obtained (which shall
                           consist of the original copies of all consents
                           required to be obtained in writing and a certificate
                           from Seller stating that all other consents have been
                           obtained);

                  (c)      Evidence that all liens or encumbrances of any kind
                           on the Assets shall have been released and/or a
                           termination statement shall have been filed as of the
                           Closing Date;

                  (d)      An assignment and bill of sale substantially
                           identical in form and substance to that attached
                           hereto as EXHIBIT H (the "Assignment and Bill of
                           Sale"), conveying all of the Assets other than any
                           Contracts which Purchaser has not elected to assume
                           pursuant to this Agreement or for which Seller has
                           been unable to obtain requisite consents to
                           assignment from applicable third parties;

                  (e)      All titles and other registration documents necessary
                           to transfer title to the rigs, motor vehicles, and
                           other tangible personalty shown on attached EXHIBIT B
                           to Purchaser;

                  (f)      A non-competition agreement that is substantially
                           identical in form and substance to that attached
                           hereto as EXHIBIT I (the "Non-Competition
                           Agreement");

                  (g)      At the option of Purchaser, a lease that is
                           substantially identical in form and substance to that
                           attached hereto as EXHIBIT J, duly executed by the
                           fee owner(s) of such property (the "Yard Lease"),
                           together with a Phase I environmental assessment
                           covering the leased premises that is reasonably
                           satisfactory to Purchaser.

         7.05 DELIVERIES BY PURCHASER AT THE CLOSING. At the Closing, Purchaser
shall execute, acknowledge, and/or deliver, as appropriate, to Seller the
following:

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ASSET PURCHASE AGREEMENT                                                 PAGE 19

<PAGE>   20

                  (a)      The certificate of Purchaser confirming the truth and
                           accuracy of all representations and warranties of
                           Purchaser under this Agreement as of the Closing Date
                           and the performance by Purchaser of all material
                           obligations required to be performed by Purchaser
                           under this Agreement at or prior to Closing;

                  (b)      Appropriate evidence of the authority of Purchaser to
                           enter into and perform its obligations under this
                           Agreement and of each signatory officer to act on
                           behalf of Purchaser in connection therewith;

                  (c)      The Purchase Price in immediately available funds;

                  (d)      The Note;

                  (e)      The Security Agreement

                  (f)      The Warrant;

                  (g)      The Assignment and Bill of Sale;

                  (h)      The Non-Competition Agreement; and

                  (i)      At the option of Purchaser, the Yard Lease.

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

         8.01 FURTHER ASSURANCES; FURTHER COOPERATION. The parties to this
Agreement shall undertake to perform their obligations under this Agreement, to
satisfy all conditions, and to cause the transaction contemplated by this
Agreement to be carried out in accordance with the terms of this Agreement. Upon
the execution of this Agreement and thereafter, each party shall do such things
as may be reasonably requested by the other party hereto in order more
effectively to consummate or document the transaction contemplated by this
Agreement. Seller agrees to cooperate reasonably with Purchaser in connection
with Purchaser's application for the transfer, renewal or issuance of any
permits, licenses, approvals, or other authorizations or to satisfy any
regulatory requirements involving the transfer of the Business to Purchaser.

         8.02 NOTICES. Any notice or communication required or permitted
hereunder shall be given in writing, shall refer specifically to the section of
this Agreement under which it is given or to which it is applicable, and shall
be sent by (a) personal delivery, (b) expedited delivery service with proof of
delivery, (c) United States mail, postage prepaid, registered or certified mail,
or (d)

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ASSET PURCHASE AGREEMENT                                                 PAGE 20

<PAGE>   21

telecopy (provided that such telecopy is confirmed by expedited delivery service
or by mail in the manner previously described) addressed as follows:

         If to Seller:              William K. Durham
                                    P. O. Box 153
                                    Kingsville, Texas 78364
                                    Telephone: (800) 542-3130
                                    Facsimile: (361) 592-3166

         With a copy:               E. V. Bonner, Jr.
                                    Porter, Rogers, Dahlman & Gordon
                                    800 N. Shoreline, Suite 800
                                    Corpus Christi, Texas 78401
                                    Telephone: (361) 880-5828
                                    Facsimile: (361) 880-5844

         If to Purchaser:           Sierra Well Service, Inc.
                                    406 N. Big Spring
                                    Midland, Texas 79701
                                    Attn: Ken Huseman, President
                                    Telephone: (915) 570-0829
                                    Facsimile: (915) 570-0487

         With a copy:               William M. Kerr, Jr.
                                    Kerr & Ward, L.L.P.
                                    P. O. Box 2858
                                    Midland, Texas 79702
                                    Telephone: (915) 684-9990
                                    Facsimile: (915) 684-9997

or to such other address or to the attention of such other persons as hereafter
shall be designated in writing by the applicable party sent in accordance
herewith. Any such notice or communication shall be deemed to have been given
either at the time of personal delivery or, in the case of delivery service or
mail, as of the date of first attempted delivery at the address and in the
manner provided herein, or in the case of telecopy upon receipt.

         8.03 BINDING EFFECT. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and
assigns.

         8.04 CAPTIONS; DEFINITIONS. The titles or captions of articles,
sections, and subsections contained in this Agreement are inserted only as a
matter of convenience and for reference and in no way define, limit, extend, or
describe the scope of this Agreement or the intent of any provision

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ASSET PURCHASE AGREEMENT                                                 PAGE 21

<PAGE>   22

hereof. The parties agree to all definitions in the statement of parties to this
Agreement and in the other introductory language to this Agreement.

         8.05 CONTROLLING LAW; AMENDMENT; WAIVER; REMEDIES CUMULATIVE. This
Agreement shall be construed and enforced in accordance with the laws of the
State of Texas. This Agreement may not be altered or amended except in writing
signed by Purchaser and Seller. The failure of any party hereto at any time to
require performance of any provisions hereof shall in no manner affect the right
to enforce the same. Except as set forth in Section 4.01, no waiver by any party
hereto of any condition, or of the breach of any term, provision, warranty,
representation, agreement, or covenant contained in this Agreement, whether by
conduct or otherwise, in any one or more instances shall be deemed or construed
as a further or continuing waiver of any such condition or breach or a waiver of
any other condition or of the breach of any other term, provision, warranty,
representation, agreement, or covenant herein contained.

         8.06 POST CLOSING ACCESS. Seller and the Purchaser shall have
reasonable access to all books and records of the Business, and the parties
hereto shall furnish to each other any information or copies of any document
which may be relevant in connection with any tax matter requiring such
information and shall provide such other assistance in this connection as the
parties reasonably request, at no cost to the party to which the request is
made. Without limiting the foregoing, Seller further agrees that, upon request
by Purchaser following Closing, it will execute and deliver to Purchaser or its
accountants such audit response letters and further confirmations as Purchaser
or its accountants may reasonably require for purposes of verification of the
accuracy, validity, and completeness of all financial and other information
provided or made available by Seller in connection with the transactions
contemplated by this Agreement, provided, however, that the recourse of Seller
under any such letters or confirmations shall be limited to accord with the
limitations of recourse upon Seller under this Agreement.

         8.07 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
among the parties hereto with respect to the transaction contemplated and
supersedes all prior negotiations, understandings, and agreements, both written
and oral, among the parties with respect thereto.

         8.08 NO PRESUMPTION. Neither this Agreement nor any other agreement
between the parties nor any uncertainty or ambiguity herein or therein shall be
construed or resolved using any presumption against any party hereto or thereto,
whether under any rule of construction or otherwise. On the contrary, this
Agreement and the other agreements between the parties have been reviewed by the
parties and their counsel and, in the case of any ambiguity or uncertainty,
shall be construed according to the ordinary meaning of the words used so as to
fairly accomplish the purposes and intentions of all parties hereto.

         8.09 COUNTERPARTS. This Agreement may be executed by each party upon a
separate copy, and in such case one counterpart of this Agreement shall consist
of enough of such copies to reflect the signatures of all of the parties to this
Agreement. This Agreement shall become effective when one or more counterparts
have been signed by each of the parties to this Agreement and delivered

--------------------------------------------------------------------------------
ASSET PURCHASE AGREEMENT                                                 PAGE 22

<PAGE>   23

to each of the other parties to this Agreement. This Agreement may be executed
in two or more counterparts, each of which shall be deemed an original, and it
shall not be necessary in making proof of this Agreement or the terms of this
Agreement to produce or account for more than one of such counterparts.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

--------------------------------------------------------------------------------
ASSET PURCHASE AGREEMENT                                                 PAGE 23

<PAGE>   24

         DULY EXECUTED by the parties hereto as of the day and year first above
written.

                                             SELLER:
                                             /s/ WILLIAM K. DURHAM
                                             -----------------------------------
                                             WILLIAM K. DURHAM d/b/a TRINITY
                                             SERVICES

                                             PURCHASER:

                                             SIERRA WELL SERVICE, INC.

                                             By: /s/ CHARLES SWIFT
                                                --------------------------------
                                             Printed Name: CHARLES SWIFT
                                                          ----------------------
                                             Title: Vice President
                                                   -----------------------------

LIST OF EXHIBITS AND SCHEDULES

EXHIBIT A                           EXCLUDED PERSONAL ITEMS
EXHIBIT B                           THE TANGIBLE PERSONALTY
EXHIBIT C                           THE CONTRACTS
EXHIBIT D                           THE NOTE
EXHIBIT E                           THE SECURITY AGREEMENT
EXHIBIT F                           THE ESCROW AGREEMENT
EXHIBIT G                           THE WARRANT
EXHIBIT H                           THE ASSIGNMENT AND BILL OF SALE
EXHIBIT I                           THE NON-COMPETITION AGREEMENT
EXHIBIT J                           THE YARD LEASE

SCHEDULE 1.02                       ALLOCATION OF PURCHASE PRICE
SCHEDULE 5.01(h)                    EXISTING INSURANCE POLICIES
SCHEDULE 5.12                       REIMBURSABLE EXPENSES

--------------------------------------------------------------------------------
ASSET PURCHASE AGREEMENT                                                 PAGE 24

<PAGE>   25

                                    EXHIBIT D

                             SECURED PROMISSORY NOTE

$250,000.00                      Kingsville, Texas            ____________, 2000

         FOR VALUE RECEIVED, the undersigned, SIERRA WELL SERVICE, INC., a
Delaware corporation ("Maker"), promises to pay to the order of WILLIAM K.
DURHAM d/b/a TRINITY SERVICES ("Payee"), at P. O. Box 153, Kingsville, Texas
78364, the principal sum of TWO HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS
($250,000.00), together with interest on the unpaid principal balance from day
to day outstanding prior to default or maturity at a floating per annum rate
which shall from quarter to quarter be equal to the lesser of (i) the Prime Rate
(hereinafter defined) in effect hereunder (the "Established Rate") (calculated
on the basis of actual days elapsed in a year consisting of 365 or 366 days, as
appropriate) or (ii) the Maximum Rate (hereinafter defined) (calculated on the
basis of actual days elapsed in a year consisting of 365 or 366 days, as
appropriate). The interest rate on this Note shall initially be determined as of
the first Friday most immediately preceding the date of this Note that is a
business day (the "Initial Determination Date") and shall thereafter be
redetermined quarterly until maturity based upon the Prime Rate in effect as of
the first Friday most immediately preceding each ensuing calendar quarter from
the date hereof that is a business day (each such date being hereinafter
referred to as a "Redetermination Date"). Each change in the rate of interest
charged hereunder shall, subject to the terms hereof, become effective, without
notice to Maker, upon the applicable quarterly adjustment date (as opposed to
the Redetermination Date). If at any time and from time to time the Established
Rate exceeds the Maximum Rate, thereby causing the interest payable to be
limited to the Maximum Rate, then any subsequent reduction in the Established
Rate shall not reduce the rate of interest hereunder below the Maximum Rate
until the total amount of interest accrued hereon equals the amount of interest
that would have accrued if the Established Rate had at all times been in effect.
All past due principal of and accrued interest on this Note shall bear interest
at the Maximum Rate.

         As used herein, "Prime Rate" shall mean the floating rate of interest
denominated and published as such by the Wall Street Journal on the Initial
Determination Date and thereafter on each applicable Redetermination Date.

         As used herein, "Maximum Rate" shall mean the maximum non-usurious rate
of interest that at any time, or from time to time, may be contracted for,
taken, reserved, charged, or received under applicable law on the indebtedness
evidenced by this Note, after taking into account, to the extent required by
applicable law, any and all relevant payments, charges, or other amounts under
this Note and all instruments securing payment of this Note. To the extent that
Chapter 303 of the Texas Finance Code, as amended, is relevant for purposes of
determining the Maximum Rate, Payee hereby notifies Maker that the applicable
rate ceiling shall be the "applicable interest rate ceiling" from time to time
in effect, as limited by Section 303.009 of the Texas Finance Code, as amended;
provided, however, that to the extent permitted by applicable law, Payee
reserves the right to change the applicable rate ceiling from time to time by
further notice to Maker; and, provided further, that the Maximum Rate shall not
be limited to the applicable interest rate ceiling under Chapter 303 if federal
laws or other state laws now or hereafter in effect and applicable to this Note
(and the interest contracted for, charged and collected hereunder) shall permit
a higher rate of interest.

         The principal of this Note is due and payable fifteen (15) months from
the date hereof. Interest on this note is due and payable monthly as it accrues,
commencing on the first day of the first month following the month of Closing
under the Asset Purchase Agreement (hereinafter defined) and continuing on the
first day of each month thereafter until the entire principal balance and all
accrued and unpaid interest on this note have

<PAGE>   26

been paid in full. This Note may be prepaid in whole or in part without penalty.
Partial prepayments shall be applied first to any accrued and unpaid interest
and the balance remaining, if any, to principal.

         This Note is secured by that certain Security Agreement of even date
herewith, between Maker, as Debtor, and Payee, as Secured Party, covering all of
the collateral therein described.

         It is understood and agreed that in the event of default in the payment
of this Note or any installment hereof, principal or interest, and if such
default shall continue unremedied for more than ten (10) days following written
notice thereof from Payee to Maker, or in the event of any default (other than
non-payment of this Note) in any instrument securing payment of this Note and if
such default shall continue unremedied for more than thirty (30) days following
written notice thereof from Payee to Maker, the entire principal balance of and
all accrued and unpaid interest on this Note shall at once become due and
payable without notice, at the option of Payee. Failure by Payee to exercise
this option on any one or more occasions shall not constitute a waiver of the
right to exercise such option in the event of subsequent default.

         Except as otherwise herein expressly provided, the makers, signers,
sureties, and endorsers of this Note jointly and severally waive demand,
presentment, notice of dishonor, notice of intent to demand or accelerate
payment hereof, diligence in collecting, grace, notice, and protest, and agree
to one or more extensions for any period or periods of time and partial
payments, before or after maturity, without prejudice to Payee; and if this Note
shall be collected by legal proceedings or through probate or bankruptcy court,
or shall be placed in the hands of an attorney for collection after default or
maturity, Maker agrees to pay all costs of collection, including reasonable
attorney's fees.

         All agreements between Maker and Payee, whether now existing or
hereafter arising and whether written or oral, are hereby limited so that under
no contingency, whether by reason or demand for payment or acceleration of the
maturity hereof or otherwise, shall the interest contracted for, charged, or
received by Payee exceed the Maximum Rate. If, for any circumstance whatsoever,
interest would otherwise be payable to Payee in excess of the Maximum Rate, the
interest payable to Payee hereunder shall be reduced to the Maximum Rate; and if
for any circumstance Payee shall ever receive anything of value deemed interest
by applicable law in excess of the Maximum Rate, then an amount equal to any
such excess shall be applied to the reduction of the principal hereof and not
the payment of interest, or if such excessive interest exceeds the unpaid
balance of principal hereof, such excess shall be refunded to Maker. All
interest paid or agreed to be paid to Payee shall, to the extent permitted by
applicable law, be amortized, prorated, allocated, and spread throughout the
full period until payment in full of the principal (including the period of any
renewal or extension hereof) so that the interest hereon for such full period
shall not exceed the Maximum Rate.

         This Note is in all respects subject to that certain Asset Purchase
Agreement (the "Asset Purchase Agreement") dated as of February 10, 2000,
between Payee, as Seller, and Maker, as Purchaser.

         This Note shall be governed by and construed in accordance with the
laws of the State of Texas.

                                             SIERRA WELL SERVICE, INC.

                                             By:
                                                --------------------------------
                                             Printed Name:
                                                          ----------------------
                                             Title:
                                                   -----------------------------

<PAGE>   27

                                    EXHIBIT G

                               WARRANT CERTIFICATE

THE WARRANTS REPRESENTED BY THIS WARRANT CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS
(COLLECTIVELY, THE "ACTS") AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT PURSUANT TO THE ACTS OR
IN RELIANCE ON EXEMPTIONS THEREFROM.

                               WARRANT CERTIFICATE

Number of Warrants:__________                                  Warrant No. _____

         This Warrant Certificate ("Warrant Certificate") certifies that, for
value received,

                                WILLIAM K. DURHAM

is the registered holder of the number of Warrants (the "Warrants") set forth
above. Each Warrant entitles the holder thereof, at any time or from time to
time on or before the Expiration Date, to purchase from the Company one fully
paid and nonassessable share of Common Stock at the Exercise Price, subject to
adjustment as provided herein.

         As used in this Warrant Certificate, the following terms shall have the
following respective meanings:

         "Asset Purchase Agreement" means that certain Asset Purchase Agreement
dated as of February 10, 2000, between William K. Durham d/b/a Trinity Services,
as Seller, and the Company, as Purchaser.

         "Common Stock" means the common stock, no par value per share, of the
Company, or such other class of securities as shall then represent the common
equity of the Company.

         "Company" means Sierra Well Service, Inc., a Delaware corporation.

         "Exercise Price," subject in all circumstances to adjustment in
accordance with Section 3, means $______ per share.

         "Expiration Date" means 5:00 p.m., New York City Time, on the day which
is the later of (i) eighteen (18) months following the date of any Sierra IPO
(as defined in the Asset Purchase Agreement) or (ii) one (1) year following
retirement in full of the indebtedness evidenced by the Note (as defined in the
Asset Purchase Agreement).

         "Issuance Date" means _____________________, 2000.

<PAGE>   28

         1. EXERCISE OF WARRANTS. (a) The Warrants may be exercised in whole or
in part by presentation and surrender at the office of the Company specified
herein of (i) this Warrant Certificate with the Election To Exercise, attached
hereto as Exhibit A, duly completed and executed, and (ii) payment of the
Exercise Price, by bank draft or cashier's check, for the number of Warrants
being exercised. If the holder of this Warrant Certificate at any time exercises
less than all the Warrants, the Company shall issue to such holder a Warrant
Certificate identical in form to this Warrant Certificate, but evidencing a
number of Warrants equal to the number of Warrants originally represented by
this Warrant Certificate less the number of Warrants previously exercised.
Likewise, upon the presentation and surrender of this Warrant Certificate at the
office of the Company and at the request of the holder, the Company will, at the
option of the holder, issue to the holder in substitution for this Warrant
Certificate one or more warrant certificates in identical form and for an
aggregate number of Warrants equal to the number of Warrants evidenced by this
Warrant Certificate.

                  (b) To the extent that the Warrants have not been exercised at
or prior to the Expiration Date, such Warrants shall expire and the rights of
the holder shall become void and of no effect.

         2. RESTRICTIONS ON TRANSFER. The Warrants evidenced hereby have not
been registered under the Securities Act of 1933, as amended, or under any state
securities law (collectively, the "Acts"), in reliance on exemptions from the
registration provisions thereof. The holder hereof acknowledges that the
Warrants may not be directly or indirectly sold, transferred or otherwise
disposed of in violation of the provisions of the Acts. Any purported sale,
transfer or other disposition of the Warrants in violation of this provision
shall be void and the Company shall not be required to recognize the same.
Compliance with this provision is the responsibility of the holder. The Company
shall deem and treat the registered holder of this Warrant Certificate as the
true and lawful owner of the Warrants for all purposes, any claims of another
person to the contrary notwithstanding.

         3. ANTIDILUTION ADJUSTMENTS. The shares of Common Stock purchasable on
exercise of the Warrants are shares of Common Stock as constituted as of the
Issuance Date. The number and kind of securities purchasable upon the exercise
of the Warrants, and the Exercise Price, shall be subject to adjustment from
time to time upon the happening of certain events, as follows:

                  (a) Mergers, Consolidations and Reclassifications. In case of
any reclassification or change of outstanding securities issuable upon exercise
of the Warrants at any time after the Issuance Date (other than a change in par
value, or from par value to no par value, or from no par value to par value or
as a result of a subdivision or combination to which subsection 3(b) applies),
or in case of any consolidation or merger of the Company with or into another
entity or other person (other than a merger with another entity or other person
in which the Company is the surviving corporation and which does not result in
any reclassification or change in the securities issuable upon exercise of this
Warrant), the holder of the Warrants shall have, and the Company, or such
successor corporation or other entity, shall covenant in the constituent
documents effecting any of the foregoing transactions that such holder does
have, the right to obtain upon the exercise of the Warrants, in lieu of each
share of Common Stock, other securities, money or other property

<PAGE>   29

theretofor issuable upon exercise of a Warrant, the kind and amount of shares of
stock, other securities, money or other property receivable upon such
reclassification, change, consolidation or merger by a holder of the shares of
Common Stock, other securities, money or other property issuable upon exercise
of a Warrant if the Warrants had been exercised immediately prior to such
reclassification, change, consolidation or merger. The constituent documents
effecting any such reclassification, change, consolidation or merger shall
provide for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided in this subsection 3(a). The provisions
of this subsection 3(a) shall similarly apply to successive reclassifications,
changes, consolidations or mergers.

                  (b) Subdivision and Combinations. If the Company, at any time
after the issuance Date, shall subdivide its shares of Common Stock into a
greater number of shares, the Exercise Price in effect immediately prior to such
subdivision shall be proportionately reduced, and the number of shares of Common
Stock purchasable upon exercise of the Warrants shall be proportionately
increased, as at the effective date of such subdivision, or if the Company shall
take a record of holders of its Common Stock for such purpose, as at such record
date, whichever is earlier. If the Company, at any time after the Issuance Date,
shall combine its shares of Common Stock into a smaller number of shares, the
Exercise Price in effect immediately prior to such combination shall be
proportionately increased, and the number of shares of Common Stock purchasable
upon exercise of the Warrants shall be proportionately reduced, as at the
effective date of such combination, or if the Company shall take a record of
holders of its Common Stock for purposes of such combination, as at such record
date, whichever is earlier.

                  (c) Dividends and Distributions. If the Company at any time
after the Issuance Date shall declare a dividend on its Common Stock payable in
stock or other securities of the Company or of any other corporation or other
entity, or in property or otherwise than in cash, to the holders of its Common
Stock, the holder of a Warrant shall, without additional cost, be entitled to
receive upon any exercise of a Warrant, in addition to the Common Stock to which
such holder would otherwise be entitled upon such exercise, the number of shares
of stock or other securities or property which such holder would have been
entitled to receive if he had been a holder immediately prior to the record date
for such dividend (or, if no record date shall have been established, the
payment date for such dividend) of the number of shares of Common Stock
purchasable on exercise of such Warrant immediately prior to such record date or
payment date, as the case may be.

                  (d) Items Constituting Common Stock. For the purposes of this
Section 3, the term "shares of Common Stock" shall mean shares of (i) the class
of stock designated as the Common Stock at the date hereof or (ii) any other
class of stock resulting from successive changes or reclassifications of such
shares consisting solely of changes in par value, or from par value to no par
value, or from no par value to par value. If at any time, because of an
adjustment pursuant to subsection (a), the Warrants shall entitle the holders to
purchase any securities other than shares of Common Stock, thereafter the number
of such other securities so purchasable upon exercise of each Warrant and the
Exercise Price of such securities shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Common Stock contained in this Section 3.

<PAGE>   30

                  (e) Calculation of Exercise Price. The Exercise Price in
effect from time to time shall be calculated to four decimal places and rounded
to the nearest thousandth.

         4. NOTICE OF ADJUSTMENTS. Whenever the Exercise Price or the number of
shares of Common Stock is required to be adjusted as provided in Section 3, the
Company shall forthwith compute the adjusted Exercise Price or the number of
shares of Common Stock issuable and shall prepare and mail to the holder hereof
a certificate setting forth such adjusted Exercise Price or such number of
shares of Common Stock, showing in reasonable detail the facts upon which the
adjustment is based.

         5. NOTICES TO WARRANT HOLDERS. In the event:

                  (a) of any consolidation or merger to which the Company is a
party and for which approval of any stockholders of the Company is required, or
of the conveyance or sale of all or substantially all of the assets of the
Company, or of any reclassification or change of the Common Stock or other
securities issuable upon exercise of the Warrants (other than a change in par
value, or from par value to no par value, or from no par value to par value or
as a result of a subdivision or combination), or a tender offer or exchange
offer for shares of Common Stock (or other securities issuable upon the exercise
of the Warrants); or

                  (b) the Company shall declare any dividend (or any other
distribution) on the Common Stock, other than regular cash dividends; or

                  (c) the Company shall authorize the granting to the holders of
Common Stock of rights or warrants to subscribe for or purchase any shares of
any class or series of capital stock; or

                  (d) of the voluntary or involuntary dissolution, liquidation
or winding up of the Company;

then the Company shall cause to be sent to the holder hereof, at least 30 days
prior to the applicable record date hereinafter specified, or promptly in the
case of events for which there is no record date, a written notice stating (x)
the date for the determination of the holders of record of shares of Common
Stock (or other securities issuable upon the exercise of the Warrants) entitled
to receive any such dividends or other distribution, (y) the initial expiration
date set forth in any tender offer or exchange offer for shares of Common Stock
(or other securities issuable upon the exercise of the Warrants), or (z) the
date on which any of the events specified in subsections (a)-(e) is expected to
become effective or consummated, and the date as of which it is expected that
holders of record of shares of Common Stock (or other securities issuable upon
the exercise of the Warrants) shall be entitled to exchange such shares for
securities or other property, if any, deliverable upon any such event. Failure
to give such notice or any defect therein shall not affect the legality or
validity of any such event, or the vote upon any such action.

         6. REPORTS TO WARRANT HOLDERS. The Company will cause to be delivered,
by first class mail, postage prepaid, to the holder at such holder's address
appearing hereon, or such other address

<PAGE>   31

as the holder shall specify, a copy of any reports delivered by the Company to
the holders of Common Stock.

         8. COVENANTS OF THE COMPANY. The Company covenants and agrees that:

                           (a) Until the Expiration Date, the Company shall at
all times reserve and keep available, free from preemptive rights, out of the
aggregate of its authorized but unissued Common Stock (and other securities),
for the purpose of enabling it to satisfy any obligation to issue shares of
Common Stock (and other securities) upon the exercise of the Warrants, the
number of shares of Common Stock (and other securities) issuable upon the
exercise of such Warrants.

                           (b) The Company shall pay all expenses, taxes (other
than stock transfer taxes or charges) and other charges payable in connection
with the preparation, issuance and delivery of new warrant certificates on
transfer of the Warrants.

                           (c) All Common Stock (and other securities) which may
be issued upon exercise of the Warrants shall upon issuance be validly issued,
fully paid, non-assessable and free from all preemptive rights and all taxes,
liens and charges with respect to the issuance thereof, and will not be subject
to any restrictions on voting or transfer thereof except as set forth in any
stockholders agreement.

                           (d) All original issue taxes payable in respect of
the issuance of shares of Common Stock to the registered holder hereof upon the
exercise of the Warrants shall be borne by the Company; provided, that the
Company shall not be required to pay any tax or charge imposed in connection
with any transfer involved in the issuance of any certificate representing
shares of Common Stock (and other securities) in any name other than that of the
registered holder hereof, and in such case the Company shall not be required to
issue or deliver any certificate representing shares of Common Stock (and other
securities) until such tax or other charge has been paid or it has been
established to the Company's satisfaction that no such tax or charge is due.

         8. NO RIGHTS AS STOCKHOLDER. The holder of the Warrants shall not, by
virtue of holding such Warrants, be entitled to any rights of a stockholder of
the Company either at law or in equity, and the rights of the holder of the
Warrants are limited to those expressed herein.

         9. NOTICES. All notices provided for hereunder shall be in writing and
may be given by registered or certified mail, return receipt requested, telex,
telegram, telecopier, air courier guaranteeing overnight delivery of personal
delivery, if to the holder at the following address:

                           William K. Durham
                           P.O. Box 153
                           Kingsville, Texas 78364
                           Telephone:
                                     ------------------
                           Facsimile:
                                     ------------------

and, if to the Company:

<PAGE>   32

                           Sierra Well Service, Inc.
                           406 N. Big Spring, Suite 300
                           Midland, Texas 79701
                           Attention: President
                           Telecopier (915) 570-0598

         10. GOVERNING LAW. This Warrant Certificate shall be governed by and
construed in accordance with the laws of the State of Texas without regard to
principles of conflict of laws.

         11. LOST, STOLEN, MUTILATED OR DESTROYED WARRANT CERTIFICATES. Upon
receipt by the Company of evidence reasonably satisfactory to it of the
ownership of and the loss, theft, destruction or mutilation of any Warrant
Certificate, then, in the absence of notice to the Company that such Warrant
Certificate has been acquired by a bona fide purchaser, the Company shall
execute and deliver, in exchange for or in lieu of the lost, stolen, destroyed
or mutilated Warrant Certificate, a substitute Warrant Certificate of the same
tenor and evidencing a like number of Warrants.

         12. ASSET PURCHASE AGREEMENT. This Warrant Certificate and the
obligations of the Company hereunder are issued and incurred pursuant to, and
are in all respects subject to, the Asset Purchase Agreement, the terms of which
are incorporated herein by reference for all purposes.

         IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be executed this ___________day of ____________________, 2000, by the
undersigned, thereunto duly authorized.

                                        SIERRA WELL SERVICE, INC.

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------<PAGE>   1

                              ACQUISITION AGREEMENT

         THIS ACQUISITION AGREEMENT ("Agreement") is made and entered into as of
the 14th day of March 2000, by and between ROYCE CROWELL (SR.), EMMA JO CROWELL,
DEAN CROWELL, PAMELA FISHER, and ROYCE E. CROWELL, JR. (the "Stock Sellers"),
GOLD STAR SERVICE COMPANY, INC., a New Mexico corporation (the "Company"), GOLD
STAR SWD, LTD. CO., a New Mexico limited liability company ("GSSWD"), and SIERRA
WELL SERVICE, INC., a Delaware corporation ("Purchaser").

                                    RECITALS:

         A. The Company is based out of Eunice, New Mexico, and is principally
engaged in the well servicing and transportation businesses in West Texas and
Southeastern New Mexico (the "Businesses").

         B. The Stock Sellers own all of the issued and outstanding capital
stock of the Company (the "Stock").

         C. GSSWD is an affiliate of the Company and owns and operates a salt
water disposal well, a brine station, and related assets in Lea County, New
Mexico, as hereinafter more particularly described.

         D. Purchaser desires to acquire all of the Stock and all of the assets
of GSSWD, and the Stock Sellers and GSSWD are respectively willing to sell the
same to Purchaser, upon and subject to the terms and conditions set forth in
this Agreement.

         NOW, THEREFORE, in consideration of the premises, the mutual
representations, warranties, and covenants which are hereinafter set forth, and
other good and valuable consideration, the legal sufficiency of which are hereby
acknowledged, the parties hereto have agreed and do hereby agree as follows:

                                    ARTICLE I

                                PURCHASE AND SALE

         Section 1.01 THE TRANSACTIONS. Subject to all of the terms and
conditions of this Agreement, the Stock Sellers and GSSWD hereby agree to sell,
transfer, and deliver, and Purchaser hereby agrees to purchase, pay for, and
accept, at the Closing (hereinafter defined), all of the Stock and all of the
assets of GSSWD as of Closing, whether tangible or intangible (the "GSSWD
Assets"), including, without limitation, all rights of GSSWD in the salt water
disposal well, the brine station and the related facilities and equipment that
are more particularly described on EXHIBIT A attached hereto and made a part
hereof (the "Disposal and Brine Facilities").

<PAGE>   2

         Section 1.02 PRE-CLOSING DISTRIBUTION OF CERTAIN ASSETS. At or prior to
Closing, the Company shall distribute to the Stock Sellers, without
representation, warranty, or recourse by or upon the Company, and without
adverse tax effect upon the Company, all of its right, title and interest in and
to the assets listed on attached SCHEDULE 1.02 (collectively, the "Excluded
Assets"). In connection with such distribution, upon Closing, the Stock Sellers
agree to indemnify and hold the Company and Purchaser harmless from and against
any and all claims, demands, causes of action, liabilities, losses, and/or
expenses (including, without limitation, reasonable attorneys' fees and other
expenses of litigation) arising from or in connection with the acquisition,
ownership, operation, use, or distribution of the Excluded Assets, regardless of
whether arising prior or subsequent to the distribution thereof to the Stock
Sellers, specifically including, without limitation, any adverse tax
consequences occasioned to or suffered by the Company or Purchaser as a
consequence of the distribution of the Excluded Assets to the Stock Sellers
pursuant to this Section 1.02.

         Section 1.03 PURCHASE PRICE. Subject to adjustment as hereinafter
provided in this Agreement, the total purchase price ("Purchase Price") for the
Stock and the GSSWD Tangible Assets (exclusive of the $50,000 total compensation
payable by Purchaser for certain covenants of non-competition and
non-interference pursuant to Section 8.02(e)) is a sum equal to (A)
$1,800,000.00, plus or minus (B) the "net financial assets" (as defined below)
of the Company and its subsidiaries and GSSWD as of the Closing Date ("NFA"),
and (C) minus, to the extent not reflected as a liability on the Audited Balance
Sheet (hereinafter defined), all amounts necessary to fully retire any vehicle
lease obligations of the Company and its subsidiaries and GSSWD as of the
Closing Date, payable by Purchaser to the Stock Sellers and GSSWD as follows:

                  (1)      Purchaser shall pay to the Stock Sellers in
                           immediately available funds at the Closing a sum
                           equal to (a) $1,075,000.00, plus or minus (b) fifty
                           percent (50%) of NFA allocable to the Company and its
                           subsidiaries, as preliminarily estimated and finally
                           adjusted pursuant to Section 5.09, minus, to the
                           extent not reflected as a liability on the Audited
                           Balance Sheet (hereinafter defined), minus (c) all
                           amounts necessary to fully retire any vehicle lease
                           obligations of the Company and its subsidiaries as of
                           the Closing Date;

                  (2)      Purchaser shall execute and deliver to the Stock
                           Sellers at Closing its promissory note (the "Note")
                           in the original principal amount of $600,000.00,
                           bearing interest at a floating rate equal to the
                           prime rate of interest quoted in the Wall Street
                           Journal published on the Friday most immediately
                           preceding the applicable quarterly adjustment date,
                           and payable to the order of the Stock Sellers on or
                           before one year from date, said Note to be
                           substantially identical in form and substance to that
                           attached hereto as EXHIBIT B, to be convertible into
                           equity in Sierra under certain circumstances as
                           therein specified, and to be secured by a security
                           interest upon the vehicles and other rolling stock of
                           the Company as of Closing that is junior in priority
                           to any liens upon such assets as of the Closing, as
                           created by security agreement

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ACQUISITION AGREEMENT                                                     PAGE 2
<PAGE>   3

                           substantially identical in form and substance to that
                           attached hereto as EXHIBIT C (the "Security
                           Agreement");

                  (3)      Purchaser shall pay to GSSWD in immediately available
                           funds at the Closing a sum equal to (a) $125,000.00,
                           plus or minus (b) any NFA allocable to the GSSWD, as
                           preliminarily estimated and finally adjusted pursuant
                           to Section 5.09; and

                  (4)      Purchaser shall pay the balance, if any, of the
                           Purchase Price to the Stock Sellers in immediately
                           available funds pursuant to and at the conclusion of
                           the post-Closing accounting procedures set forth in
                           Section 5.09 below.

         As used in this Agreement, "net financial assets" means the monetary
difference between the account group "Total Current Assets" and the account
group "Total Liabilities" (excluding "Deferred Income Taxes") as such account
groups are shown on the Audited Balance Sheet and then adjusted or converted as
of the Closing Date pursuant to Section 5.09 [i.e. (TCA) -(TL-DIT) = net
financial assets].

         Notwithstanding the foregoing, as among the Stock Sellers, that portion
of the Purchase Price attributable to the Stock shall be paid and payable to and
among the Stock Sellers, in accordance with their respective interests in the
Stock as shown on attached SCHEDULE 2.11, as the Stock Sellers shall jointly
direct Purchaser in writing at Closing under this Agreement.

                                   ARTICLE II

                        REPRESENTATIONS AND WARRANTIES OF
                    THE STOCK SELLERS, THE COMPANY, AND GSSWD

         The Stock Sellers, the Company, and GSSWD hereby jointly and severally
represent and warrant to Purchaser as of the date of this Agreement and as of
the Closing Date as follows:

         Section 2.01 ORGANIZATION AND QUALIFICATION; SUBSIDIARIES. The Company
and its subsidiary, Kerby Brothers, Inc., a New Mexico corporation ("Kerby"),
are corporations duly organized, validly existing, and in good standing under
the laws of New Mexico and have the requisite power and authority to own, lease,
and operate its assets and to carry on its business as now being conducted.
GSSWD is a limited liability company duly organized, validly existing, and in
good standing under the laws of New Mexico and has the requisite power and
authority to own, lease, and operate its assets and to carry on its business as
now being conducted. The Company, Kerby, and GSSWD have not received any notice
of proceedings relating to the revocation or modification of any such
authorizations. The Company, Kerby, and GSSWD are duly qualified or licensed to
do business and are in good standing in each jurisdiction where the character of
the assets owned, leased, or operated by them or the nature of their activities
makes such qualification or

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ACQUISITION AGREEMENT                                                     PAGE 3
<PAGE>   4

licensing necessary. Kerby is a wholly owned subsidiary of the Company. The
Company does not have any other subsidiaries. GSSWD does not have any
subsidiaries. Except for the equity ownership of the Company in Kerby, none of
the Company, Kerby, or GSSWD directly or indirectly owns any equity or similar
interest in, or any interest convertible into or exchangeable or exercisable
for, any equity or similar interest in, any corporation, partnership, or other
business association or entity.

         Section 2.02 GOVERNING DOCUMENTS. The articles of incorporation and the
bylaws of the Company and Kerby and the articles of organization and operating
agreement of GSSWD, true and correct copies of which have been furnished to
Purchaser, are in full force and effect and have not been modified, amended, or
rescinded. The Company, Kerby, and GSSWD are not in violation of their
respective articles of incorporation or organization or bylaws or operating
agreement.

         Section 2.03 CAPITALIZATION OF THE COMPANY AND KERBY. The authorized
capital stock of the Company consists of 50,000 shares of common stock, par
value $1.00 per share. As of the date hereof, 1,000 shares of common stock of
the Company are issued and outstanding, all of which are validly issued, fully
paid, and nonassessable (and collectively constitute the Stock). The authorized
capital stock of Kerby consists of 10,000 shares of common stock, no par value.
As of the date hereof, 2,500 shares of common stock of Kerby are issued and
outstanding, all of which are validly issued, fully paid, and nonassessable and
are owned by the Company. There are no options, warrants, or other rights,
agreements, arrangements or commitments of any character relating to the issued
or unissued capital stock of the Company or Kerby or obligating the Company or
Kerby to issue or sell any shares of capital stock of, or other equity interests
in, the Company or Kerby. There are no obligations, contingent or otherwise, of
the Company or Kerby to repurchase, redeem, or otherwise acquire any shares of
their stock or to provide funds to or make any investment (in the form of a
loan, capital contribution, or otherwise) in any other person or entity.

         Section 2.04 AUTHORITY RELATIVE TO THIS AGREEMENT. The Stock Sellers,
the Company, and GSSWD have full power and authority to execute and deliver this
Agreement and to perform their respective obligations hereunder and to
consummate the transactions contemplated hereby. The execution and delivery of
this Agreement by the Stock Sellers, the Company, and GSSWD and their
consummation of the transactions contemplated hereby have been duly and validly
authorized by all necessary action and no other proceedings on the part of the
Stock Sellers, the Company, Kerby, or GSSWD are necessary to authorize this
Agreement or to consummate the transactions so contemplated. This Agreement has
been duly and validly executed and delivered by the Stock Sellers, the Company,
and GSSWD and constitutes the legal, valid, and binding obligations of the Stock
Sellers, the Company, and GSSWD, except as the same may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws now or
hereafter in effect relating to or limiting creditors' rights or by legal
principles of general applicability governing availability of equitable
remedies.

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ACQUISITION AGREEMENT                                                     PAGE 4
<PAGE>   5

            Section 2.05 NO CONFLICT; REQUIRED FILINGS AND CONSENTS.

                  (a) The execution and delivery of this Agreement by the Stock
Sellers, the Company, and GSSWD do not, and the performance of this Agreement by
the Stock Sellers, the Company, and GSSWD will not (i) conflict with or violate
the articles of incorporation, articles of organization, bylaws, operating
agreement, or other governing documents of the Company, Kerby, or GSSWD, (ii)
conflict with or violate any laws, statutes, rules, regulations, or
pronouncements of any court, tribunal, or governmental agency, whether federal,
state, or local, (collectively, "Laws") applicable to the Stock Sellers, the
Company, Kerby, or GSSWD or by which they or their respective assets are bound
or affected, or (iii) result in any material breach of or constitute a material
default (or an event that with notice or lapse of time or both would become a
material default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, or result in the creation of a lien or
encumbrance on any of the assets of the Stock Sellers, the Company, Kerby, or
GSSWD pursuant to, any note, bond, mortgage, indenture, contract, agreement,
lease, license, permit, franchise, or other instrument or obligation to which
the Stock Sellers, the Company, Kerby, or GSSWD is a party or by which any of
them or their respective assets are bound or affected.

                  (b) The execution and delivery of this Agreement by the Stock
Sellers, the Company, and GSSWD do not, and the performance of this Agreement by
the Stock Sellers, the Company, and GSSWD will not, require any consent,
approval, authorization, or permit of, or filing with or notification to, any
governmental or regulatory authority, domestic or foreign.

         Section 2.06 COMPLIANCE; PERMITS. The Company, Kerby, and GSSWD are not
in conflict with, or in default under or violation of, (i) any federal, state,
or local laws applicable to the Company, Kerby, or GSSWD or by which the
Company, Kerby, or GSSWD or any of the assets of the Company, Kerby, or GSSWD
are bound or affected or (ii) any note, bond, mortgage, indenture, contract,
agreement, lease, license, permit, franchise or other instrument or obligation
to which the Company, Kerby, or GSSWD is a party or by which the Company or its
assets or Kerby or its assets or GSSWD or its assets are bound or affected. The
Company, Kerby, and GSSWD possess all permits, licenses, leases, agreements, and
authorizations of governmental authorities and any other applicable persons or
entities necessary to or for the operation of its assets, properties, and
business, all of which permits, licenses, leases, agreements, and authorizations
are in full force and effect.

         Section 2.07 REPORTS AND FINANCIAL STATEMENTS OF THE COMPANY. The
combined balance sheet of the Company and GSSWD for the period ending as of
December 31, 1999 (the "Audited Balance Sheet") and the combined statement of
earnings, statement of changes in equity, and statement of changes in cash flows
of the Company and GSSWD for the period ending as of December 31, 1999, copies
of all of which are attached hereto as EXHIBIT D (collectively, the "Financial
Statements"), are true and complete in all material respects, fairly represent
the financial position and results of operations of the Company, Kerby, and
GSSWD as of and for the periods shown, and were prepared in accordance with
generally accepted accounting principles. None of the Financial Statements
contains any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements therein not misleading.

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ACQUISITION AGREEMENT                                                     PAGE 5
<PAGE>   6

        Except as and to the extent of (i) liabilities reflected or reserved
against in the Audited Balance Sheet and (ii) liabilities which have arisen
since the date of the Audited Balance Sheet in the ordinary course of business
and which have been fully disclosed to Purchaser in writing, the Company, Kerby,
and GSSWD do not have any liabilities or obligations (whether accrued, absolute
or contingent), and including without limitation, any liabilities resulting from
failure to comply with any laws or any federal, state, or local tax liabilities
due or to become due whether (a) incurred in respect of or measured by income
for any financial statement or balance sheet period, or (b) arising out of
transactions entered into, or any state of facts existing, prior or subsequent
thereto.

        Section 2.08 ABSENCE OF CERTAIN CHANGES OR EVENTS. Since December 31,
1999, except as shown on attached SCHEDULE 2.08 or as otherwise expressly
permitted by this Agreement, the Company, Kerby, and GSSWD have conducted their
businesses only in the ordinary course and in a manner consistent with past
practice and, since such date, except as shown on SCHEDULE 2.08, there has not
been (a) any material adverse change in the financial condition, results of
operations, or business of the Company, Kerby, or GSSWD, (b) any material
damage, destruction, or loss (whether or not covered by insurance) with respect
to any assets of the Company, Kerby, or GSSWD, including, without limitation,
the GSSWD Tangible Assets, (c) any change by the Company, Kerby, or GSSWD in its
accounting methods, principles, or practices, (d) any entry by the Company,
Kerby, or GSSWD into any commitments or transactions material to the Company,
Kerby, or GSSWD, (e) any declaration, setting aside, or payment of any dividends
or distributions in respect of shares of the Stock or any redemption, purchase,
or other acquisition of any of the capital stock of the Company, Kerby, or
GSSWD, (f) any increase or decrease in or establishment or termination of any
bonus, insurance, severance, deferred compensation, pension, retirement, profit
sharing, stock option (including, without limitation, the granting of stock
options, stock appreciation rights, performance awards, or restricted stock
awards), stock purchase, or other employee benefit plan of the Company, Kerby,
or GSSWD or any other increase in the compensation payable or to become payable
to any officers or key employees of the Company, Kerby, or GSSWD (g) any
incurrence of any indebtedness or other obligations or liabilities by the
Company, Kerby, or GSSWD, (h) any proposed law or regulation or any actual event
or condition of any character that is known to the Seller or the Company or
Kerby or GSSWD that materially adversely affects the business or future
prospects of the Company, Kerby, or GSSWD, (h) any claim, litigation, event, or
condition of any character that materially adversely affects the business or
future prospects of the Company, Kerby, or GSSWD, (i) any issuance or purchase
of, or agreement to issue or purchase shares of the capital stock or other
securities of the Company, Kerby, or GSSWD, (j) any mortgage, pledge, lien, or
encumbrance made or agreed to be made on any of the assets or properties of the
Company, Kerby, or GSSWD, (k) any sale, transfer, other disposition of, or
agreement to sell, transfer, or dispose of the properties or assets, tangible or
intangible, of the Company, Kerby, or GSSWD, except as expressly permitted by
this Agreement and except in the ordinary course of business and then only for
full and fair value received, (l) any loans, advances, or agreements with
respect to any loans or advances, other than to customers in the ordinary course
of business and that have been properly reflected as "accounts receivable" on
the books of the Company, Kerby, and GSSWD; (m) any transaction outside the
ordinary course of business of the Company, Kerby, and GSSWD, (n) any capital
expenditure by the Company, Kerby, or GSSWD in excess of $10,000, or (o) any
agreement by the Stock Sellers, the Company, Kerby, or GSSWD to do any of the
items described in Subparagraphs (a) through (n) above.

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ACQUISITION AGREEMENT                                                     PAGE 6
<PAGE>   7

        Section 2.09 ABSENCE OF LITIGATION. There are no claims, actions,
proceedings, or investigations pending or, to the knowledge of the Stock
Sellers, the Company or GSSWD, threatened against the Company, Kerby, or GSSWD
or any of the assets of the Company, Kerby, or GSSWD before any court,
arbitrator, or administrative, governmental, or regulatory authority or body,
domestic or foreign. As of the date hereof, none of the Company, Kerby, and
GSSWD nor their assets are subject to any order, writ, judgment, injunction,
decree, determination, or award.

        Section 2.10 EMPLOYEE BENEFIT PLANS. Except as set forth on attached
SCHEDULE 2.10 (collectively, the "Plans"), the Company and Kerby do not have any
employee benefit plans (as defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended and the regulations thereunder), any
bonus, stock option, stock purchase, restricted stock, incentive, deferred
compensation, medical, accident, life insurance, disability income, retiree
medical or life insurance, supplemental retirement, severance, and other benefit
plans, programs, or arrangements, or any sick leave and vacation plans. The
Company and Kerby, as applicable, have operated the Plans in compliance with all
applicable federal, state, and local laws and regulations, has received no
notice of any claims or violations of any laws and regulations applicable to the
Plans, and, has no existing obligations or liabilities under the Plans which
have not been fully funded or reserved for on the Financial Statements. Any and
all such plans, programs, and arrangements previously adopted and subsequently
terminated by the Company or Kerby were duly and validly terminated in
accordance with all applicable laws and the Company and Kerby have no continuing
obligations or liabilities and has received no notice of any claims or
violations with respect to such former plans, programs, and arrangements.

        Section 2.11 TITLE TO STOCK. The Stock Sellers own good and marketable
title to all of the Stock, free and clear of liens, claims, and encumbrances of
any kind or character.

        Section 2.12 ASSETS OF THE COMPANY, KERBY, AND GSSWD.

               (a) SCHEDULE 2.12(a) attached hereto contains a complete and
correct description of all real property which is, or as of the Closing will be,
owned by or leased to the Company, Kerby, or GSSWD or in which the Company,
Kerby, or GSSWD otherwise holds, or as of the Closing will hold, contractual
rights, together with all applicable real property leases and contracts. All
such leases and contracts are valid and in full force and effect and all rents,
royalties, and other sums payable by the Company, Kerby, or GSSWD thereunder
have been timely paid. There exists no default or event or circumstance which,
with notice or lapse of time or both, will constitute a default under any of
such lease agreements.

               (b) SCHEDULE 2.12(b) attached hereto contains a complete and
accurate description of all vehicles, equipment, furniture, fixtures, and other
personal property of any kind or character, tangible or intangible, that is
owned by, in the possession of, or used by the Company, Kerby, and

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ACQUISITION AGREEMENT                                                     PAGE 7
<PAGE>   8

GSSWD (the "Subject Real Estate"). Except as shown on SCHEDULE 2.12(b), no
personal property owned or used by the Company, Kerby, or GSSWD in connection
with its business is held under any lease, security agreement, conditional sales
contract, or other title retention or financing agreement or is located any
place other than in the possession of the Company.

        Section 2.13 TITLE TO AND CONDITION OF THE ASSETS OF THE COMPANY AND
KERBY. The Company and Kerby have, or will have at Closing, good and marketable
title to all of their assets and properties, real and personal, tangible and
intangible, that are material to the business and future prospects of the
Company and Kerby, free and clear of liens, claims, charges, and encumbrances of
any kind or nature, save and except (a) the liens and security interests shown
on attached SCHEDULE 2.13, (b) liens for real and personal property taxes that
are not yet due and payable and (c) possible minor matters that, in the
aggregate, are not substantial in amount and do not materially interfere with or
detract from the present or intended use of any of the assets and properties nor
materially impair the business operations of the Company and Kerby. The tangible
assets of the Company and Kerby are in good operating condition and repair,
normal wear and tear excepted.

        Section 2.14 TITLE TO AND CONDITION OF THE DISPOSAL AND BRINE
FACILITIES. GSSWD has, or will have at Closing, good and marketable title to
100% of the operating rights in, and subject to any royalties payable under the
Disposal and Brine Agreements (hereinafter defined), 100% of the revenues
derived or derivable from the operation of, the Disposal and Brine Facilities,
free and clear of liens, claims, charges, and encumbrances of any kind or
character, except (a) liens for real and personal property taxes that are not
yet due and payable and (b) as may be expressly set forth on EXHIBIT A. The
Disposal and Brine Facilities are in good operating condition and repair, normal
wear and tear excepted.

        Section 2.15 TAXES. The Company and Kerby are and at all times in the
past have been "C" corporations within the meaning of Section 1361 of the
Internal Revenue Code of 1986, as amended. The Company and Kerby presently
maintain and at all times in the past have maintained fiscal years ending as of
December 31 for federal income tax purposes. The Company and Kerby have filed
all state and federal Tax Returns (defined below) required to be filed by them,
and the Company and Kerby have paid and discharged all Taxes (as defined below)
shown due thereon and have paid all other Taxes as are due. The liability for
Taxes set forth in each such Tax Return does not materially understate the Taxes
required to be reflected on such Tax Return. For purposes of this Agreement,
"Tax" or "Taxes" means taxes of any kind, payable to any federal, state, local,
or foreign taxing authority, including (without limitation) (i) income,
franchise, profits, gross receipts, ad valorem, value added, sales, use,
service, real or personal property, payroll, withholding, employment, social
security, unemployment compensation, and production taxes, and (ii) interest,
penalties, and additions to tax imposed with respect thereto, whether disputed
or not; and "Tax Returns" means all returns, reports, declarations, claims for
refund, and information statements with respect to Taxes required to be filed
with the Internal Revenue Service or any other taxing authority, domestic or
foreign, through the time of Closing hereunder, including, without limitation,
consolidated, combined, and unitary tax returns and any schedule or amendment
thereto. The Company and Kerby have not (i) granted any waiver of any statute of
limitations with respect to, any

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ACQUISITION AGREEMENT                                                     PAGE 8
<PAGE>   9

Tax, or (ii) obtained an extension of time with respect to the filing of any Tax
Return other than Tax Returns that were duly filed within the applicable
extension period. No claim has been made by an authority in a jurisdiction where
the Company or Kerby does not file Tax Returns that the Company or Kerby may be
subject to taxation by that jurisdiction. There are no liens or security
interests on any of the assets of the Company or Kerby that arose in connection
with any failure (or alleged failure) to pay any Tax. The Company and Kerby have
disclosed on all federal income Tax Returns all positions taken therein that
could give rise to a substantial understatement of federal income Tax within the
meaning of Section 6662 of the Code. The Company and Kerby have withheld and
paid all Taxes required to have been withheld and paid in connection with
amounts paid or owing to any employee, creditor, independent contractor, or
other third-party. There is no dispute or claim concerning any liability for Tax
of the Company or Kerby (i) claimed or raised by any authority in writing or
(ii) as to which the Company or Kerby or any officers (and employees responsible
for Tax matters) of the Company or Kerby have knowledge.

        Section 2.16   ENVIRONMENTAL MATTERS.

               (a) The Company, Kerby, and GSSWD have conducted all operations
and activities in material compliance with all applicable Environmental Laws (as
defined below), and none of the assets of the Company, Kerby or GSSWD
(including, without limitation, the Disposal and Brine Facilities) is being or
has been operated in violation of any Environmental Laws.

               (b) The Company, Kerby, and GSSWD possess all permits required
under Environmental Laws for the operation of their respective assets.

               (c) The assets of the Company, Kerby, and GSSWD and the
operations conducted thereon or therewith, are not subject to any existing,
unfulfilled administrative or judicial order requiring remedial action under any
Environmental Law.

               (d) Neither the Stock Sellers nor the Company, Kerby, or GSSWD
has received any notice of any investigation or inquiry regarding failure of the
assets of the Company, Kerby, or GSSWD, or the operations conducted thereon or
therewith, to comply with Environmental Laws.

        As used in this Section 2.16, "Environmental Laws" shall mean the
federal Comprehensive Environmental Response, Compensation and Liability Act, as
amended, the Superfund Amendments and Reauthorization Act, as amended, Safe
Drinking Water Act, New Mexico Solid Waste Disposal Act, the Resource
Conservation and Recovery Act, as amended, the Hazardous and Solid Waste
Amendments Act, as amended, the Toxic Substances Control Act, as amended, the
Clean Water Act, as amended, and the Clean Air Act, as amended, and any other
applicable federal, state, or local environmental law and all rules, regulations
and administrative orders related thereto, as such laws, rules, regulations and
administrative orders exist as of the Closing Date.

        Section 2.17 BROKERS. No broker, finder, or investment banker is
entitled to any brokerage, finder's, or other fee or commission in connection
with the transactions contemplated by this Agreement based upon arrangements
made by or on behalf of Seller or the Company, Kerby, or GSSWD.

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ACQUISITION AGREEMENT                                                     PAGE 9
<PAGE>   10

        Section 2.18 CONTRACTS. Attached hereto as SCHEDULE 2.18 is a list of
all currently effective agreements respecting property, goods, and/or services
of or binding upon the Company, Kerby or their respective assets (the
"Contracts"). None of the Contracts has been modified, amended, supplemented or
altered except as specifically shown on attached SCHEDULE 2.18. The Company has
made copies of all of the Contracts (including all modifications, amendments,
and supplements thereto) available to Purchaser. All of the Contracts are in
full force and effect and the Company, and Kerby are not in default under any of
the Contracts.

        Section 2.19 DISPOSAL AND BRINE AGREEMENTS. All leasehold and other
contractual rights owned or used by or binding upon GSSWD in connection with
operation of the Disposal and Brine Facilities (collectively, the "Disposal and
Brine Agreements") are described on attached EXHIBIT A. Except as shown on
EXHIBIT A, none of the Disposal and Brine Well Agreements has been modified,
amended, supplemented, or altered. All rentals, royalties, and other sums
payable under the Disposal and Brine Agreements have been timely and properly
made. The Disposal and Brine Agreements are in full force and effect and GSSWD
is not in default (and no circumstance or event has occurred which with notice
or the passage of time would constitute a default by GSSWD) under the Disposal
and Brine Agreements. GSSWD has obtained or will have obtained by Closing all
requisite consents of third parties to its conveyance of the Disposal and Brine
Facilities and the Disposal and Brine Agreements to Purchaser.

        Section 2.20 NO UNION CONTRACTS. There is no collective bargaining or
other union agreement to or by which the Company or Kerby is a party or is
bound, nor is a collective-bargaining agreement currently being negotiated; and
all non-exempt employees have been paid in accordance with the Fair Labor
Standards Act of 1938 and the Portal-to-Portal Act of 1947. The Company and
Kerby are in compliance with all federal, state, or other applicable laws,
domestic or foreign, respecting employment and employment practices, terms and
conditions of employment, and wages and hours, and has not and is not engaged in
any unfair labor practice. The Company and Kerby have not experienced any
material labor difficulty during the last three years.

        Section 2.21 INSURANCE. SCHEDULE 2.21 attached hereto lists all
insurance policies (the "Insurance Policies") held by the Company, Kerby, and
GSSWD and all such listed policies are in the respective principal amounts set
forth therein. The Company, Kerby, and GSSWD maintain (a) insurance on all of
its business, operations, and assets of a type customarily insured, covering
property damage and loss of income by fire or other casualty and (b) insurance
protection against all liabilities, claims, and risks against which it is
customary to insure. All premiums due and payable under the Insurance Policies
have been paid. The Company, Kerby, and GSSWD are not, and but for a requirement
that notice be given or that a period of time elapse or both would not be, in
violation under any such Insurance Policies.

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ACQUISITION AGREEMENT                                                    PAGE 10
<PAGE>   11

        Schedule 2.22 BANK ACCOUNTS. SCHEDULE 2.22 attached hereto contains a
true and correct list of the names and addresses of all banks, financial
institutions, and other depositories in which the Company, Kerby, or GSSWD has
an account, deposit, or safe deposit box and the names of all persons authorized
to draw on those accounts or deposits or who have access to them and the account
numbers of each account.

        Schedule 2.23 OTHER LIABILITIES AND OBLIGATIONS. SCHEDULE 2.23 attached
hereto contains a true and correct list of all liabilities and obligations of
the Company, Kerby, and GSSWD not disclosed elsewhere in this Agreement of any
kind, character, and description, whether accrued, absolute, contingent, or
otherwise, and whether or not required to be disclosed or accrued in the
Financial Statements of the Company, Kerby, or GSSWD that exceed $5,000 to any
one creditor. In the case of liabilities that may not be fixed, an estimate of
the maximum amount that may be payable is also included.

        Section 2.24 DISCLOSURE. No representations or warranties made by the
Stock Sellers, the Company, or GSSWD in this Agreement, and no statements of the
Stock Sellers or the Company, Kerby, or GSSWD contained in any document executed
or delivered by any of them to Purchaser pursuant hereto or in connection with
the transactions contemplated hereby, contain any untrue statement of a material
fact or omit to state any material fact necessary to make the statements herein
or therein not misleading.

        Section 2.25 TRANSACTIONS WITH AFFILIATES. Except as shown on attached
SCHEDULE 2.25, the Company, Kerby, and GSSWD are not a parties to any
transaction, contract, or agreement with any (i) current or former officer or
director of the Company, Kerby, or GSSWD or (ii) any parent, spouse, child,
brother, sister or other family relation of any such officer or director, or
(iii) any corporation or partnership of which any such officer or director or
any such family relation is an officer, director, partner or greater than 10%
stockholder (based on percentage ownership of voting stock) or (iv) any
"affiliate", or "associate" of any such persons or entities (as such terms are
defined in the rules and regulations promulgated under the Securities Act of
1934, including, without limitation, any transaction involving a contract,
agreement, or other arrangement providing for the employment of, furnishing of
materials, products, or services by, rental of real or personal property from,
or otherwise requiring payments to, any such person or entity, except with
respect to services provided on reasonable terms which would not materially
alter the presentation of the Financial Statements, if such transactions had
been entered into with an unrelated third party.

                                   ARTICLE III

                   REPRESENTATIONS AND WARRANTIES OF PURCHASER

        Purchaser hereby represents and warrants to the Stock Sellers and GSSWD
as of the date of this Agreement as follows:

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ACQUISITION AGREEMENT                                                    PAGE 11
<PAGE>   12

        Section 3.01 ORGANIZATION AND QUALIFICATION. Purchaser is a corporation
duly organized, validly existing and in good standing under the laws of
Delaware. Purchaser is duly qualified or licensed to do business and is in good
standing in each jurisdiction where the character of the assets owned or
operated by Purchaser or the nature of its activities makes such qualification
or licensing necessary.

        Section 3.02 AUTHORITY RELATIVE TO THIS AGREEMENT. Purchaser has the
requisite corporate power and authority to execute and deliver this Agreement
and to perform its obligations hereunder and to consummate the transactions
contemplated hereby. The execution and delivery of this Agreement by Purchaser
and the consummation by Purchaser of the transactions contemplated hereby have
been duly and validly authorized by all necessary corporate action and no other
corporate proceedings on the part of Purchaser are necessary to authorize this
Agreement or to consummate the transactions so contemplated. This Agreement has
been duly and validly executed and delivered by Purchaser and, assuming the due
authorization, execution and delivery by all other parties hereto, constitutes
the legal, valid and binding obligation of Purchaser, except as the same may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
now or hereafter in effect relating to or limiting creditors, rights or by legal
principles of general applicability governing the availability of equitable
remedies.

        Section 3.03   NO CONFLICT; REQUIRED FILINGS AND CONSENTS.

               (a) The execution and delivery of this Agreement by Purchaser do
not, and the performance of this Agreement by Purchaser will not (i) conflict
with or violate the certificate of incorporation or bylaws of Purchaser, (ii) to
the knowledge of Purchaser, conflict with or violate any law applicable to
Purchaser or by which any of its assets are bound or affected or (iii) to the
knowledge of Purchaser, result in any breach or constitute a default (or an
event that with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or
cancellation of, or result in the creation of a lien or encumbrance on any of
the material assets of Purchaser pursuant to, any note, bond, mortgage,
indenture, or any material contract, agreement, lease, license, permit,
franchise, or other instrument or obligation to which Purchaser is a party or by
which Purchaser or any of its assets are bound or affected.

               (b) To the knowledge of Purchaser, the execution and delivery of
this Agreement by Purchaser do not, and the performance of this Agreement by
Purchaser will not, require any consent, approval, authorization or permit of,
or filing with or notification to, any governmental or regulatory authority,
domestic or foreign.

        Section 3.04 BROKERS. No broker, finder, or investment banker is
entitled to any brokerage, finder's or other fee or commission in connection
with the transactions contemplated by this Agreement based upon arrangements
made by or on behalf of Purchaser.

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ACQUISITION AGREEMENT                                                    PAGE 12
<PAGE>   13

                                   ARTICLE IV

                 CONDUCT OF BUSINESS OF THE COMPANY, KERBY, AND
                         GSSWD PENDING THE CLOSING DATE

        Pending the Closing Date or earlier termination of this Agreement, and
except as otherwise specifically contemplated in this Agreement or the schedules
hereto or as may be consented to and approved in writing by Purchaser, the Stock
Sellers, the Company, and GSSWD covenant and agree as follows:

        Section 4.01 ORDINARY COURSE OF BUSINESS. The Company, Kerby, and GSSWD
will carry on their business substantially in the same manner as heretofore
conducted, and will not engage in any transaction or activity, enter into any
agreement or make any commitment, except in the ordinary course of business.
Without limiting the generality of the foregoing, the Company, Kerby, and GSSWD
will:

               (a) operate and maintain their assets diligently and in a good
and workmanlike manner and comply in all material respects with all applicable
laws and with the terms of any agreements binding upon those assets;

               (b) maintain and keep in full force and effect all of the
Contracts and all of the Disposal and Brine Agreements and all permits, licenses
and similar rights and privileges of the Company, Kerby, and GSSWD and comply in
all material respects with all of their material obligations therein and
thereunder;

               (c) maintain all of their tangible assets in at least as good a
condition as they were in at the date hereof, ordinary wear and tear excepted,
and remove no material items therefrom;

               (d) maintain the Insurance Policies in full force and effect; and

               (e) pay, perform, and discharge, on a basis consistent with prior
practices, all obligations of the Company, Kerby, and GSSWD under the Contracts,
the Disposal and Brine Agreements, and the notes, leases, and other instruments
evidencing the indebtedness or other liabilities of the Company, Kerby, and
GSSWD which are shown on the Audited Balance Sheet and/or on the schedules
attached to this Agreement in accordance with their respective terms (but
without right of prepayment);

        Section 4.02 RESTRICTED ACTIONS. Without the prior written consent of
Purchaser, such consent not to be unreasonably withheld, the Company, Kerby, and
GSSWD will not (a) enter into any agreement or commitment, the result of which
would be to incur or expand the existing indebtedness or liabilities of the
Company, Kerby, or GSSWD; (b) incur any additional indebtedness other than trade
payables incurred in the ordinary course of business; (c) sell, transfer,
assign, convey or otherwise dispose of any of the assets of the Company, Kerby,
or GSSWD other than dispositions

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ACQUISITION AGREEMENT                                                    PAGE 13
<PAGE>   14

of (i) equipment or other personal property which is replaced with property and
equipment of comparable or better value and utility in the ordinary and routine
maintenance and operation of its business and (ii) personal property and
equipment no longer used or useful in the ordinary course of business; or (d)
create or permit the creation of any new lien, security interest, or other
encumbrances on any asset of the Company, Kerby, or GSSWD.

        Section 4.03 AMENDMENTS TO GOVERNING DOCUMENTS. No change or amendment
shall be made in the articles of incorporation or bylaws of the Company, Kerby,
or GSSWD.

        Section 4.04 ORGANIZATION. The Company, Kerby, and GSSWD will preserve
their respective existences and will keep their business organizations intact
and use their reasonable efforts to preserve their relationships with their
suppliers, customers, and others having business relations with the Company,
Kerby, and GSSWD.

        Section 4.05 EMPLOYMENT AGREEMENTS. The Company, Kerby, and GSSWD will
not enter into any agreement relating to employment with any person.

        Section 4.06 ISSUANCE OF SHARES; DIVIDENDS. The Company and Kerby will
not issue shares of capital stock, or grant any options, warrants or other
rights to purchase or acquire the capital stock of the Company or Kerby. The
Company and Kerby will neither declare nor pay or set aside for payment any
dividend or other distribution on their outstanding shares of capital stock, nor
redeem, purchase or otherwise acquire any of their capital stock.

        Section 4.07 NO DEFAULT. The Company, Kerby, and GSSWD will not
knowingly take any action or knowingly take any action that causes a material
breach of any representation, warranty, covenant or agreement of the Stock
Sellers, the Company, or GSSWD under this Agreement.

        Section 4.08 INVESTMENT. The Company and Kerby will not make any new
capital investment in, make any loan to, or acquire the securities or assets of
any other person or entity.

        Section 4.09 USES OF CASH. Other than in the ordinary course of
business, the Company, Kerby, and GSSWD will not make any payments during the
period between the date hereof and the Closing Date except for the purpose of
paying Taxes, paying rentals or other sums owing by the Company, Kerby, or GSSWD
under the Contracts or the Disposal and Brine Agreements as and when due,
discharging rentals and trade payables incurred in the ordinary course of
business, and retiring or discharging presently existing indebtedness to
financial institutions or other third parties as and when due in accordance with
the terms of the notes or other instruments evidencing such indebtedness (but
without right of prepayment).

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ACQUISITION AGREEMENT                                                    PAGE 14
<PAGE>   15

                                    ARTICLE V

                         OTHER AGREEMENTS OF THE PARTIES

        Section 5.01 PURCHASER'S DUE DILIGENCE. Purchaser shall have until 6:00
p.m., CST, on March 24, 2000 (the "Inspection Period") to inspect, review, and
audit the assets of the Company, Kerby, and GSSWD and all books, records, data,
and other information of the Stock Sellers and the Company, Kerby, and GSSWD
relating to the business and financial affairs of the Company, Kerby, and GSSWD,
the title to and ownership of the assets of the Company, Kerby, and GSSWD, and
the conduct of the Businesses. Except as otherwise expressly provided in this
Agreement, all expenses incurred by the Purchaser relating to its inspections,
reviews, and audits shall be borne and paid exclusively by the Purchaser. The
Stock Sellers, the Company, and GSSWD shall cooperate with Purchaser in all
reasonable respects in facilitating such inspections, reviews, and audits.
Without limiting the foregoing, the Stock Sellers, the Company, and GSSWD agree
that, during the Inspection Period and thereafter until Closing, they will (a)
provide or cause to be provided to Purchaser and its counsel, accountants,
consultants, and other authorized representatives, during normal business hours
or otherwise, if necessary, full access to all of the assets, books, agreements,
commitments and records of the Company, Kerby, and GSSWD; and (b) furnish
Purchaser and its representatives with such data, records, and other information
concerning any of the operations and affairs of the Company, Kerby, and GSSWD as
Purchaser may reasonably request. If Purchaser shall determine as a result of
its inspections, reviews, and audits that the condition or value of or title to
the assets of the Company, Kerby, or GSSWD or the operations or results of the
Company, Kerby, or GSSWD are deficient in any material respect, or if Purchaser
is for any other reason, in Purchaser's sole and absolute discretion,
dissatisfied with the transaction contemplated by this Agreement, Purchaser may
elect to terminate this Agreement by giving written notice thereof to the Stock
Sellers prior to the end of the Inspection Period. If Purchaser does not
terminate this Agreement during the Inspection Period, Purchaser may thereafter
continue its reviews, inspections and audits pending Closing, but, except as
otherwise provided in this Agreement, without additional termination rights
after the Inspection Period.

        The Stock Sellers and GSSWD further agree that, upon request by
Purchaser prior to or following Closing, the Stock Sellers and GSSWD will
execute and deliver to Purchaser or its accountants such audit response letters
and further confirmations as Purchaser or its accountants may reasonably require
for purposes of verification of the accuracy, validity, and completeness of the
Financial Statements, the Final Balance Sheet (hereinafter defined), and all
other financial and other information provided or made available by the Stock
Sellers, the Company, or GSSWD to Purchaser in connection with the transactions
contemplated by this Agreement.

        Section 5.02 ENVIRONMENTAL REPORT. Within fifteen (15) days from the
date of this Agreement, the Stock Sellers, the Company, and GSSWD, at their sole
expense, shall furnish to Purchaser Phase I environmental studies and reports
covering all of the Subject Real Estate and prepared by an environmental
consulting firm or firms mutually acceptable to the Stock Sellers and Purchaser
(the "Environmental Reports"). If the Environmental Reports show any
environmental

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<PAGE>   16

condition that is unacceptable to Purchaser, Purchaser shall, within ten (10)
days of its receipt of the Environmental Reports, notify the Stock Sellers of
such condition(s) and the reasons for Purchaser's objections thereto
("Purchaser's Environmental Objections"). Upon expiration of such ten-day
notification period, Purchaser shall be deemed to have accepted the form and
substance of the Environmental Reports, except, however, those matters to which
Purchaser has timely objected in accordance with the preceding sentence. The
Stock Sellers, the Company, and GSSWD shall have no obligation to bring any
action or proceeding or otherwise to incur any expense whatsoever to eliminate
or modify any of Purchaser's Environmental Objections. Within five days
following receipt of Purchaser's Environmental Objections, the Stock Sellers,
the Company, and GSSWD shall give notice to Purchaser of what actions, if any,
they propose to take in order to cure Purchaser's Environmental Objections. If
they are unable or unwilling to remedy Purchaser's Environmental Objections to
the reasonable satisfaction of Purchaser, Purchaser may terminate this Agreement
by notice in writing to the Stock Sellers by the earliest to occur of (i) the
Closing Date or (ii) five (5) business days following notice from the Stock
Sellers, the Company, and GSSWD that they are unable or unwilling to remedy
Purchaser's Environmental Objections, in which event, except as expressly
provided otherwise in this Agreement, none of the parties hereto shall have any
further rights or obligations under this Agreement. If this Agreement is
terminated for any reason, Purchaser agrees to immediately return the
Environmental Reports to the Company and to hold the contents thereof strictly
confidential. Likewise, pending and following Closing hereunder, the Stock
Sellers, the Company, and GSSWD shall hold the Environmental Reports strictly
confidential and shall not disclose the same or their contents to any third
party without the prior written consent of Purchaser.

        Section 5.03 EXCLUSIVE DEALING. Unless and until this Agreement shall
have been terminated in accordance with the terms hereof, neither the Stock
Sellers nor the Company, Kerby, or GSSWD shall directly or indirectly, solicit,
initiate, or participate in negotiations with, or provide any information to,
any corporation, partnership, person or other entity or group (other than the
Purchaser or an affiliate or an associate of the Purchaser) concerning, or enter
into any agreement providing for any sale of the assets of the Company, Kerby,
or GSSWD, any sale of shares of capital stock or other equity in the Company,
Kerby, or GSSWD, or any similar transactions involving the Company, Kerby, or
GSSWD.

        Section 5.04 CONSENTS, APPROVALS, AND FILINGS. The Stock Sellers, the
Company, Kerby, GSSWD, and Purchaser shall each use its reasonable efforts to
obtain at the earliest practicable date and, in any event, prior to the Closing
Date, all consents and approvals, including any third party consents, and to
make all filings required to be obtained or made under any federal, state, or
local laws or any agreement or other instrument (including, without limitation,
any consent or approval necessary to avoid the loss of any rights under any
agreement) prior to consummating the transactions contemplated hereby, whether
such consent, approval or filing is to be obtained from or made with private
parties or applicable governmental authorities.

        Section 5.05 BROKERS AND FINDERS. Purchaser, on the one hand, and the
Stock Sellers, the Company, and GSSWD, on the other hand, shall indemnify each
other and hold each other harmless from any claim against the other for a
broker's or finder's fee, commission, or other like payment in

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ACQUISITION AGREEMENT                                                    PAGE 16
<PAGE>   17

connection with the transactions contemplated by this Agreement which arises
from or is based upon arrangements made by or through the indemnifying party.

        Section 5.06 PUBLIC ANNOUNCEMENTS. Pending Closing, except as may be
required by applicable law, no party hereto shall issue any press release or
make any other public pronouncements concerning this Agreement or the
transactions contemplated hereby without the written consent and approval of all
other parties.

        Section 5.07 RESIGNATION OF OFFICERS AND DIRECTORS. The Stock Sellers
and the Company will secure the resignation of each then-serving officer and
director of the Company and Kerby effective as of the Closing Date.

        Section 5.08 NOTICE OF DEVELOPMENTS. Prior to the Closing, the Stock
Sellers, the Company, and GSSWD will give prompt notice to Purchaser of any
material event affecting the assets, liabilities, business, financial condition,
operations, results of operations, or future prospects of the Company, Kerby,
and/or GSSWD. No disclosure pursuant to this Section 5.08 shall, however, be
deemed to amend or supplement this Agreement or the schedules hereto or to
prevent or cure any misrepresentation, breach of warranty, or breach of covenant
under this Agreement.

        Section 5.09 PRELIMINARY AND FINAL COMPUTATIONS OF NFA. As part of its
diligence processes in this transaction, Purchaser intends to have the books and
records of the Company, Kerby, and GSSWD audited by certified professional
accountants and to have audited financial statements prepared for the Company,
Kerby, and GSSWD on a consolidated basis in compliance with generally accepted
accounting principles ("GAAP"), all at the expense of Purchaser. The Stock
Sellers, the Company, GSSWD and Purchaser recognize that the financial data
necessary to permit computation of NFA at the Closing may not be complete or
final at such time. The parties accordingly shall estimate NFA at Closing and
shall then finalize their calculation of NFA on a post-Closing basis within
sixty (60) days following the Closing. At least three (3) business days prior to
the Closing, Purchaser shall deliver to the Stock Sellers and GSSWD a
preliminary settlement statement, reflecting its good faith estimate of NFA as
of the Closing Date based upon the best information then available to Purchaser.
At or prior to Closing, the Stock Sellers, GSSWD, and Purchaser shall attempt to
reconcile any differences they may have regarding the preliminary settlement
statement. If there are any items the parties are unable to reconcile prior to
Closing, Purchaser's position shall prevail to enable Closing to proceed, but
without prejudice to the right of any party to this Agreement to dispute any
item of the final settlement statement. Within forty-five (45) days after the
Closing Date, Purchaser shall deliver to the Stock Sellers and GSSWD an audited
balance sheet of the Company, Kerby, and GSSWD, on a consolidated basis, for the
period ended as of the Closing Date, prepared in accordance with GAAP, and a
proposed final settlement statement including Purchaser's final computation of
NFA. The Stock Sellers and GSSWD shall have ten (10) days from its receipt of
the such balance sheet and proposed settlement statement to notify Purchaser of
their objections, if any, to the information set forth therein, failing which
the Stock Sellers and GSSWD shall be deemed to have irrevocably accepted the
computations and substance of those documents for all purposes of this
Agreement. If the Stock Sellers and GSSWD

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ACQUISITION AGREEMENT                                                    PAGE 17
<PAGE>   18

timely and properly contest any items within such balance sheet or proposed
final settlement statement, the Stock Sellers, GSSWD, and Purchaser shall
promptly meet and utilize their best efforts to resolve their differences, it
being the intention of the parties to finalize all post-Closing adjustments
within sixty (60) days following the Closing Date. If the parties are unable to
reach final agreement on any such post-Closing matters, they shall resolve their
differences by means of the dispute resolution procedures set forth in Section
10.02 and final settlement between the parties shall be deferred pending
conclusion of such procedures. At the conclusion of the post-Closing accounting
contemplated by this Section 5.09, the Stock Sellers, GSSWD, or Purchaser, as
appropriate, shall immediately remit to the other, in immediately available
funds, the net sum determined owning by such party in the final settlement
statement, whether finalized by agreement of the parties or through dispute
resolution processes. As used in this Agreement, "Final Balance Sheet" and
"Final Settlement Statement" shall mean the final balance sheet and the final
settlement statement proposed by Purchaser, as the same may be modified either
by agreement of the parties or dispute resolution pursuant to the foregoing.

        Section 5.10 ACCOUNTS RECEIVABLE. The Stock Sellers and GSSWD expressly
represent and warrant that all accounts receivable of the Company, Kerby, and
GSSWD reflected on the Final Balance Sheet as of the Closing Date are
collectible in the normal course of business within 150 days from the Closing
Date without resort to litigation or the retention of collection services.
Following Closing, the Company shall apply partial payments by customers to the
respective outstanding receivables of such customers in the order of their aging
(i.e. older accounts paid first). To the extent any such receivables remain
unpaid following such 150-day period, the Company, without limitation of its
other legal rights and remedies, may require the Stock Sellers and GSSWD to
immediately purchase the same from the Company at full face value and without
subsequent recourse of any kind upon the Company or Purchaser or may offset the
face amount of such unpaid receivables against its payment obligations under the
Note.

        Section 5.11 TAXES AND TAX RETURNS. The Stock Sellers shall be
responsible for the timely preparation and filing (without extension, unless
otherwise agreed by Purchaser in writing) of all federal, state, and local Tax
Returns covering or for (or based upon income received or realized during) all
periods prior to and including the Closing Date, except that, if Closing occurs,
Purchaser shall be responsible for the timely preparation and filing of the
federal income tax returns of the Company for calendar year 2000 and ensuing
years. The Stock Sellers shall prepare all such Tax Returns for which the Stock
Sellers are responsible hereunder in accordance with applicable law and shall
submit such Tax Returns to the Company and Purchaser for their review and
concurrence at least ten (10) business days prior to filing. If, after the
Closing Date, any applicable taxing authority shall determine there to be a
deficiency in the amount of any federal, state, or local Tax paid or payable by
the Company or Kerby which is not reserved for or reflected on the Final Balance
Sheet and which relates to any period prior to the Closing Date, the Stock
Sellers shall be fully responsible for the payment of any such deficiency.
Following Closing, if any Tax Return covering a period of time prior to the
Closing Date shall be audited by an applicable taxing authority, the Company
shall promptly notify the Stock Sellers of such audit. The Stock Sellers and
Purchaser and the Company shall jointly and not severally conduct all
discussions and negotiations with applicable taxing

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ACQUISITION AGREEMENT                                                    PAGE 18
<PAGE>   19

authorities regarding each such audited Tax Return as it may relate to periods
prior to the Closing Date. The Company shall have exclusive authority to conduct
all discussions and negotiations with applicable taxing authorities regarding
Tax Returns relating to periods from and after the Closing Date and shall be
solely responsible for the payment of all Taxes attributable to such periods.

        Section 5.12   INDEMNIFICATION.

               (a) Indemnification by the Stock Sellers and GSSWD. The Stock
Sellers and GSSWD agree to indemnify and hold harmless Purchaser and the Company
and Kerby after the Closing Date against and in respect of any of the following
matters which may be asserted or established:

                       (i) All liabilities of the Company, Kerby, and GSSWD of
        any nature, whether accrued, absolute, contingent, or otherwise, which
        existed as of the Closing Date and are not provided for or reflected on
        the Final Balance Sheet;

                       (ii) Any and all liabilities or obligations arising from
        or attributable to the ownership or operation of the GSSWD Assets for
        all periods prior to the Closing Date;

                       (iii) Any and all damages, losses, expenses, or
        deficiencies resulting from any breach of the warranties,
        representations and covenants of the Stock Sellers, the Company, and/or
        GSSWD contained in this Agreement or in any schedule hereto; and

                       (iv) All demands, assessments, judgments, costs, and
        expenses (including reasonable legal fees and other expenses of
        litigation, both at the trial and appellate level) arising from or in
        connection with any action, suit, proceeding, or claim incident to any
        of the foregoing.

               (b) Indemnification by Purchaser. Purchaser agrees to indemnify
and hold harmless the Stock Sellers after the Closing Date against or in respect
of any of the following matters:

                       (i) Any and all damages, losses, expenses, or
        deficiencies resulting from any breach of the warranties,
        representations and covenants of Purchaser contained in this Agreement
        or in any schedule hereto; and

                       (ii) All demands, assessments, judgments, costs, and
        expenses (including reasonable legal fees and other expenses of
        litigation, both at the trial and appellate level) arising from or in
        connection with any action, suit, proceeding, or claim incident to any
        of the foregoing.

        Section 5.13 RELEASE AND WAIVER BY THE STOCK SELLERS AND GSSWD. Any
provisions of this Agreement to the contrary notwithstanding, following Closing
hereunder, the Stock Sellers and

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ACQUISITION AGREEMENT                                                    Page 19
<PAGE>   20

GSSWD shall have no right of contribution, indemnity, reimbursement, or other
legal or equitable right of recourse upon the Company or Kerby based upon or
attributable to the breach or non- performance by the Stock Sellers, the
Company, or GSSWD of any of their representations, warranties, and covenants
under this Agreement, and the Stock Sellers and GSSWD, as of Closing hereunder,
expressly release and waive any and all such rights of contribution, indemnity,
reimbursement or other recourse upon or against the Company and Kerby. The Stock
Sellers and GSSWD shall be jointly and severally liable and responsible for all
representations, warranties, covenants and other obligations of the Stock
Sellers and/or GSSWD hereunder.

         Section 5.14 RELEASE OF PERSONAL GUARANTIES. Upon Closing, Purchaser
shall cooperate fully with the Stock Sellers and shall utilize its best efforts
in attempting to obtain the prompt release by applicable third parties of the
personal guaranties by the Stock Sellers of indebtedness of the Company which
are shown on attached SCHEDULE 5.14.

         Section 5.15 EMPLOYMENT MATTERS. To the extent Purchaser or the Company
shall elect to continue the employment of current employees of the Company
following Closing, each employee so retained by Purchaser or the Company
following Closing shall be eligible for participation in Purchaser's current
employee benefit programs with full credit for length of service prior to
Closing with the Company. The Stock Sellers and the Company acknowledge and
agree that the decision to hire any current employees of the Company is solely
in the discretion of Purchaser and that Purchaser has no obligation of any kind
to employ any of the existing employees of the Company following Closing.

         Section 5.16 INVESTMENT REPRESENTATIONS BY THE STOCK SELLERS. Upon
Closing and in connection with any conversion of the unpaid balance of the Note
into common stock in Purchaser as more particularly provided in the Note, the
Stock Sellers expressly represent, warrant, acknowledge, and agree to and with
the Company that:

                  (a)      any such stock so acquired by the Stock Sellers (the
                           "Stock") may not have been registered under the
                           Securities Act of 1933 or any other state securities
                           laws (collectively, the "Securities Acts") because
                           Purchaser may or will issue the Stock in reliance
                           upon this Section 5.15 and the exemptions from the
                           registration requirements of the Securities Acts
                           providing for issuance of securities not involving a
                           public offering;

                  (b)      the Stock Sellers will acquire any Stock for the
                           Stock Sellers' own respective accounts, for
                           investment, and not with a view to the resale or
                           distribution thereof;

                  (c)      the Stock Sellers will not transfer, sell or offer
                           for sale any portion of the Stock unless there is an
                           effective registration or other qualification
                           relating thereto under the Securities Act of 1933 and
                           under any applicable state securities laws or unless
                           the holder of the Stock delivers to Purchaser an

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ACQUISITION AGREEMENT                                                    PAGE 20
<PAGE>   21

                     opinion of counsel, satisfactory to Purchaser, that such
                     registration or other qualification under such Act and
                     applicable state securities laws is not required in
                     connection with such transfer, offer or sale;

              (d)    Purchaser is under no obligation to register the Stock or
                     to assist the Stock Sellers in complying with any exemption
                     from registration under the Acts if the Stock Sellers
                     should at a later date wish to dispose of the Stock;

              (e)    Prior to entering into this Agreement, the Stock Sellers
                     have made an investigation of Purchaser and its business
                     and has obtained or had made available to them all
                     information with respect thereto which the Stock Sellers
                     needed to make an informed decision to structure the
                     transactions contemplated hereby as provided in this
                     Agreement;

              (f)    The Stock Sellers possess adequate experience and
                     sophistication as investors for the evaluation of the
                     merits and risks of investment in the Stock; and

              (g)    Each of the Stock Sellers is an "accredited investor," as
                     defined in Regulation D as promulgated under the Securities
                     Act of 1933, as amended, (the "1933 Act").

                                   ARTICLE VI

                 CONDITIONS TO OBLIGATION OF PURCHASER TO CLOSE

        The obligation of Purchaser to close under this Agreement shall, unless
waived in writing by Purchaser, be subject to the satisfaction on or before the
Closing Date of each of the following conditions, and the Stock Sellers, the
Company, and GSSWD shall use their reasonable efforts to cause each such
condition to be so satisfied.

        Section 6.01 REPRESENTATIONS AND WARRANTIES TRUE. The representations
and warranties of the Stock Sellers, the Company, and GSSWD contained in this
Agreement shall be true and correct in all respects as of the date of this
Agreement and as of the Closing Date, as though such representations and
warranties were made at and as of such date, except for changes expressly
permitted or contemplated by this Agreement.

        Section 6.02 PERFORMANCE. The Stock Sellers, the Company, and GSSWD
shall have performed and complied with all covenants, agreements, obligations
and conditions required by this Agreement to be performed or complied with by
them on or prior to the Closing Date.

        Section 6.03 PROCUREMENT OF WRITTEN SURFACE USE AND DAMAGE AGREEMENT.
GSSWD shall have obtained a written surface use and damage agreement for the
lands upon which the salt

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ACQUISITION AGREEMENT                                                    Page 21
<PAGE>   22

water disposal well described on attached EXHIBIT A from all applicable surface
owners in form and substance satisfactory to Purchaser.

         Section 6.04 CONSENTS. The consents, approvals, and filings described
in Section 5.04 shall have been obtained or made, as the case may be, without
the imposition of conditions or limitations having a material adverse effect.

         Section 6.05 OPINION OF COUNSEL TO THE STOCK SELLERS, THE COMPANY, AND
GSSWD. The Stock Sellers, the Company, and GSSWD shall have delivered to
Purchaser the opinion of their legal counsel, Gary Don Reagan, in form and
substance reasonably acceptable to Purchaser and its counsel, and favorably
addressing the organization, qualification, good standing, and capitalization of
the Company, Kerby, and GSSWD, the due and proper authorization, execution, and
delivery and the enforceability of this Agreement and all instruments and
documents executed by the Stock Sellers, the Company and GSSWD in connection
herewith, and such other matters as Purchaser or its counsel may reasonably
require.

         Section 6.06 NO INJUNCTION. There shall not be in effect any
preliminary or permanent injunction or temporary restraining order issued by any
state or federal court that prevents the consummation of the transactions
contemplated hereby.

         Section 6.07 OTHER DOCUMENTS. All documents required to be delivered to
Purchaser by the Stock Sellers, the Company, or GSSWD on or prior to the Closing
Date shall have been so delivered.

         Section 6.08 MATERIAL ADVERSE CHANGE. Prior to the Closing Date, there
shall not have been any material adverse change in, to, or affecting the
Company, Kerby, or GSSWD or their operations or assets.

         Section 6.09 CERTIFICATES. The Stock Sellers, the Company, and GSSWD
shall have delivered to Purchaser certificates confirming the continuing
validity of their representations and warranties pursuant to Section 6.01 and
certifying their performance hereunder as contemplated by Section 6.02.

                                   ARTICLE VII

               CONDITIONS TO THE OBLIGATIONS OF THE STOCK SELLERS,
                         THE COMPANY, AND GSSWD TO CLOSE

         The obligations of the Stock Sellers, the Company, and GSSWD to
consummate the transactions contemplated by this Agreement shall, unless waived
in writing by them, be subject to the satisfaction on or before the Closing Date
of each of the following conditions, and Purchaser shall use its reasonable
efforts to cause each such condition to be so satisfied:

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ACQUISITION AGREEMENT                                                    PAGE 22
<PAGE>   23

         Section 7.01 REPRESENTATIONS AND WARRANTIES TRUE. The representations
and warranties of Purchaser contained in this Agreement shall be true and
correct in all respects as of the date made and as of the Closing Date, as
though such representations and warranties were made at and as of such date,
except for changes permitted or contemplated by this Agreement.

         Section 7.02 PERFORMANCE. Purchaser shall have performed and complied
in all material respects with all covenants, agreements, obligations, and
conditions required by this Agreement to be performed or complied with by
Purchaser on or prior to the Closing Date.

         Section 7.03 CONSENTS AND APPROVALS. The consents, approvals, and
filings described in Section 5.04 shall have been obtained or made, as the case
may be, without the imposition of conditions or limitations having a material
adverse effect.

         Section 7.04 NO INJUNCTION. There shall not be in effect any
preliminary or permanent injunction or temporary restraining order issued by any
state or federal court that prevents the consummation of the transactions
contemplated hereby.

         Section 7.05 OTHER DOCUMENTS. All documents required to be delivered to
the Stock Sellers, the Company, or GSSWD by Purchaser on or prior to the Closing
Date shall have been so delivered.

         Section 7.06 CERTIFICATES. Purchaser shall have delivered to the Stock
Sellers, the Company, and GSSWD certificates confirming the continuing validity
of its representations and warranties pursuant to Section 7.01 and certifying
its performance hereunder as contemplated by Section 7.02.

                                  ARTICLE VIII

                                   THE CLOSING

         Section 8.01 CLOSING. The closing ("Closing") of the transaction
contemplated hereby shall take place at the offices of Purchaser at 406 N. Big
Spring, Midland, Texas, on a business date of Purchaser's unilateral selection
within thirty (30) days following any successful completion by Purchaser of an
initial public offering of common stock in the Company through a recognized
national stock exchange (the "Sierra IPO"), but in no event later than April 30,
2000, or at such other place and time as the parties hereto might hereafter
mutually agree in writing. Such date or any alternative date so selected by the
parties is referred to in this Agreement as the "Closing Date." Purchaser shall
afford the Stock Sellers, the Company, and GSSWD at least ten (10) days prior
written notice of its desired Closing Date pursuant to the foregoing.

         Section 8.02 DELIVERIES. At the Closing, the following shall occur:

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ACQUISITION AGREEMENT                                                    Page 23
<PAGE>   24

                  (a) The Stock Sellers shall endorse and deliver the
certificate(s) evidencing the Stock to Purchaser, free and clear of liens,
claims, and encumbrances;

                  (b) GSSWD and Purchaser shall execute and deliver an
assignment and bill of sale that is substantially identical in form and
substance to that attached hereto as EXHIBIT E;

                  (c) The Stock Sellers, the Company, and GSSWD shall deliver to
Purchaser their closing certificates in compliance with the provisions of
Section 6.09;

                  (c) The Stock Sellers, the Company, and GSSWD shall deliver,
or cause to be delivered, to Purchaser the legal opinion of their counsel, as
specified in Section 6.05;

                  (d) Royce Crowell, Jr., Dean Crowell, and Bob Fisher and
Purchaser shall respectively execute and deliver employment agreements which are
substantially identical in form and substance to that attached hereto as EXHIBIT
F (in each case specifying a salary and a position mutually acceptable to the
applicable employee and Purchaser, but the failure to of those parties to agree
upon such matters shall only terminate and extinguish the obligation of
Purchaser to employee such prospective employee hereunder and shall not
otherwise affect the remaining obligations of Sierra and such party or any other
parties under this Agreement, including, but not limited to, the obligation of
the Stock Sellers and of GSSWD to sell the Stock and the GSSWD Assets,
respectively, at Closing);

                  (e) Royce Crowell (Sr.), Jo Crowell, Royce Crowell, Jr., Dean
Crowell, Pam Fisher, and Bob Fisher and Purchaser shall respectively execute and
deliver non-competition agreements which are substantially identical in form and
substance to that attached hereto as EXHIBIT G;

                  (f) The parties shall attempt to agree upon an estimate of NFA
and shall execute a preliminary closing statement as contemplated by Section
5.09;

                  (g) Purchaser shall pay to the Stock Sellers and GSSWD by wire
transfer their respective portions of the cash portion of the Purchase Price
payable at Closing pursuant to Section 1.03(1);

                  (h) Purchaser shall execute and deliver the Note to the
designee of the Stock Sellers;

                  (i) The Company and the Stock Sellers' designee shall execute
and deliver the Security Agreement;

                  (j) Purchaser shall deliver to the Stock Sellers its closing
certificate in compliance with the provisions of Section 7.06;

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ACQUISITION AGREEMENT                                                    PAGE 24

<PAGE>   25

                  (k) The Stock Sellers, the Company, and GSSWD shall execute
such notifications to depository institutions and such changes of authorized
signatories upon the accounts of the Company and GSSWD as Purchaser may
reasonably request; and

                  (l) At the option of Purchaser in each instance, the Stock
Sellers shall execute and deliver to Purchaser three-year leases covering the
Main Street and old Halliburton properties in Eunice, New Mexico, and the yard
in Hobbs, New Mexico, which are substantially identical in form and substance to
that attached hereto as EXHIBIT H (the "Yard Leases").

                                   ARTICLE IX

                           TERMINATION AND ABANDONMENT

         Section 9.01 Termination and Abandonment. This Agreement may be
terminated at any time prior to the Closing:

                  (a) by mutual agreement of all of the parties hereto;

                  (b) by Stock Sellers if Closing shall not have occurred on or
prior to April 30, 2000, other than due to breach or non-performance by Stock
Sellers hereunder;

                  (c) by Purchaser if it fails or is unable to conclude the
Sierra IPO on or before April 30, 2000;

                  (d) by Purchaser, if the conditions set forth in Article VI
shall not have been complied with and performed in any material respect and such
noncompliance or nonperformance shall not have been cured or eliminated (or by
its nature cannot be cured or eliminated) on or before the Closing Date;

                  (e) by Stock Sellers, the Company, and GSSWD if the conditions
set forth in Article VII have not been complied with and performed in any
material respect and such noncompliance or nonperformance shall not have been
cured or eliminated (or by its nature cannot be cured or eliminated) on or
before the Closing Date; or

                  (f) by either Purchaser or Stock Sellers, the Company, and
GSSWD by written notice to the other, if any action or proceeding shall have
been instituted before any court or other governmental body or, to the knowledge
of the party giving such notice, shall have been threatened formally in writing
by any public authority with requisite jurisdiction, to restrain or prohibit the
transactions contemplated by this Agreement or to subject one or more of the
parties or their directors or their officers to liability on the grounds that it
or they have breached any law or regulation or otherwise acted improperly in
connection with such transactions, and such action or

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ACQUISITION AGREEMENT                                                    PAGE 25
<PAGE>   26

proceeding shall not have been dismissed or such written threat shall not have
been withdrawn or rescinded on or before the Closing Date.

         Section 9.02 REMEDIES, RIGHTS AND OBLIGATIONS ON TERMINATION. If this
Agreement is terminated and abandoned as provided in this Article IX:

                  (a) Redelivery. Each party will redeliver all documents, work
papers, and other materials of any other party relating to the transactions
contemplated by this Agreement, whether obtained before or after the execution
of this Agreement, to the party furnishing the same, and all information
received by any party to this Agreement with respect to the business of any
other party shall not at any time be used for the advantage of, or disclosed to
third parties by, such party to the detriment of the party furnishing such
information; provided, however, that this subsection (a) shall not apply to any
documents, work papers, material, or information which is a matter of public
knowledge or which has heretofore been or is hereafter published in any
publication for public distribution or filed as public information with any
governmental authority or is otherwise in the public domain.

                  (b)(1) Default by Purchaser. If Purchaser fails or refuses to
close in accordance with the terms of this Agreement and if Stock Sellers, the
Company, and GSSWD have timely satisfied all the conditions to Purchaser's
obligation to close hereunder and are not in default hereunder, then, and as the
exclusive remedy of Stock Sellers, the Company, and GSSWD for such breach, Stock
Sellers, the Company, and GSSWD shall have the right to declare this Agreement
terminated and to receive the total sum of $15,000.00 from Purchaser as
liquidated damages and not a penalty for the breach hereof by Purchaser (the
same as if Purchaser had deposited such sum with Stock Sellers, the Company, and
GSSWD as a down payment or earnest money hereunder). In this regard, the parties
acknowledge and agree that the damages occasioned to Stock Sellers, the Company,
and GSSWD by any such breach are difficult of ascertainment or calculation and
that the specified sum of liquidated damages represents a fair and reasonable
estimate of such damages.

                  (b)(2) Default by Stock Sellers, the Company and/or GSSWD. If
Stock Sellers, the Company, and/or GSSWD fails or refuses to close in accordance
with the terms of this Agreement and if Purchaser has timely satisfied all the
conditions to Purchaser's obligation to close hereunder and is not in default
hereunder, Purchaser shall have the right either (i) to declare this Agreement
canceled or (ii) to seek enforcement of this Agreement at law or in equity,
including, without limitation, an action for specific performance of the terms
of this Agreement by Stock Sellers, the Company, and GSSWD or for recovery of
the actual damages occasioned to Purchaser by such breach. The provisions of
Section 10.02 hereof shall have no application to any claim or action by
Purchaser under this Section 9.01(b)(2).

                  (c) Continuing Liability. The continuing liability of the
parties to this Agreement with respect to any breach of any representation,
warranty, covenant, or agreement contained therein shall not be affected by such
termination or abandonment, unless this Agreement is terminated or

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ACQUISITION AGREEMENT                                                    Page 26
<PAGE>   27

abandoned by agreement of the parties pursuant to Section 9.01 (a) or due to
failure to successfully conclude the Sierra IPO pursuant to Section 9.01(c).

                                    ARTICLE X

                              POST CLOSING REMEDIES

         Section 10.01 OFFSET/WAIVER. Subject to the provisions of Section
10.02, after the Closing, Purchaser, without limitation of its other rights and
remedies, shall have a right of offset against its obligations under the Note
for any breach of the representations, warranties, and covenants of Stock
Sellers, the Company, and/or GSSWD under this Agreement. In any proceedings by
the Purchaser to assert or prosecute any claims under, or to otherwise enforce,
this Agreement, Stock Sellers, the Company, and GSSWD agree that they will not
assert as a defense, or as a bar to recovery, and hereby waive any right to so
assert such defense or such bar to recovery, that (a) prior to the Closing, the
Company or Kerby shall have had knowledge of the circumstances giving rise to
the claim being pursued by Purchaser, or (b) prior to the Closing, the Company
or Kerby engaged in conduct or took action that caused or brought about the
circumstances giving rise to such claim, or otherwise contributed thereto.

         Section 10.02 DISPUTE RESOLUTION.

                  (a) Unless expressly provided otherwise in this Agreement, any
and all claims, disputes, controversies, and other matters in question involving
the parties hereto and arising out of or relating to this Agreement and the
transactions contemplated hereby, any provision hereof, the alleged breach of
such provision, or in any way relating to the subject matter of this Agreement
(collectively, "Disputes"), whether such Disputes sound in contract, tort, or
otherwise, at law or in equity, under State or federal law, whether provided by
statute or common law, for damages or any other relief, shall be resolved in
accordance with this Section 10.02.

                  (b) The parties shall attempt in good faith to resolve any
Dispute promptly by negotiations between representatives who have authority to
settle the controversy. Any party may give the other party written notice of any
Dispute not resolved in the normal course of business, together with a request
that the parties meet and confer ("Notice of Dispute"). Within fifteen (15) days
after delivery of a Notice of Dispute, the parties or their representatives
shall meet at a mutually acceptable time and place, and thereafter as often as
they reasonably deem necessary, to exchange relevant information and to attempt
to resolve the Dispute. If the matter has not been resolved within thirty (30)
days after delivery of the Notice of Dispute, or if the parties fail to meet
within fifteen (15) days after delivery of the Notice of Dispute, either party
may initiate mediation of the claim or dispute as provided hereafter. If a party
or its representative intends to be accompanied at a meeting by an attorney, the
other parties shall be given advance notice of such intention and may also be
accompanied by an attorney. All negotiations pursuant to this clause are
confidential and shall be

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ACQUISITION AGREEMENT                                                    PAGE 27
<PAGE>   28

treated as compromise and settlement negotiations for purposes of the Federal
Rules of Evidence and any state's rules of evidence.

                  (c) If a Dispute has not been resolved by negotiation as
provided in Section 10.02 (b), the parties shall endeavor to settle the claim or
dispute by mediation under the Center for Public Resources ("CPR") Model
Procedure for Mediation of Business Disputes. A neutral third party will be
selected from the CPR panel of neutrals. If the parties encounter difficulty in
agreeing on a neutral third party, they will seek the assistance of CPR in the
selection process. Mediation under this Section 10.02 (c) will commence within
sixty (60) days of the Notice of Dispute.

                  (d) If the Dispute has not been resolved by non-binding means
pursuant to Sections 10.02(b) or (c) within thirty (30) days of the initiation
of mediation, either party may submit such Dispute for resolution by binding
arbitration as follows:

                           (i)      It is the intention of the parties that the
                                    arbitration shall be conducted pursuant to
                                    the Federal Arbitration Act (the "Act"), as
                                    modified by this Agreement. The validity,
                                    construction, and interpretation of this
                                    Section 10.02 (d), and all procedural
                                    aspects of the arbitration conducted
                                    pursuant to this Section 10.02 (d),
                                    including, but not limited to, the
                                    determination of issues that are subject to
                                    arbitration (i.e. arbitrability), the scope
                                    of the arbitrable issues, allegations of
                                    fraud in the inducement to enter into this
                                    Agreement, or this arbitration provision,
                                    allegations of waiver, laches, delay, or
                                    other defenses to arbitrability, and the
                                    rules governing the conduct of the
                                    arbitration (including the time for filing
                                    an answer, the time for filing
                                    counterclaims, the times for amending
                                    pleadings, the specificity of the pleadings,
                                    the extent and scope of discovery, the
                                    issuance of subpoenas, the times for
                                    designation of experts, whether the
                                    arbitration is to be stayed pending
                                    resolution of related litigation involving
                                    third parties not bound by this Agreement,
                                    the receipt of evidence and the like), shall
                                    be decided by the arbitrators. The
                                    arbitration shall be administered by the
                                    American Arbitration Association ("AAA"),
                                    and shall be conducted pursuant to the
                                    Commercial Arbitration Rules of the AAA, as
                                    modified by this Agreement. Notwithstanding
                                    any provision of this Agreement to the
                                    contrary, the parties expressly agree that
                                    the arbitrators shall have absolutely no
                                    authority to award incidental, special,
                                    treble, exemplary, or punitive damages of
                                    any type under any circumstances regardless
                                    of whether such damages may be available
                                    under New Mexico law, the law of any other
                                    state, or federal law, or under the Act, or
                                    the Commercial Arbitration Rules of the AAA,
                                    the parties hereby waiving their right, if
                                    any, to recover incidental, special, treble,

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ACQUISITION AGREEMENT                                                    PAGE 28
<PAGE>   29

                                    exemplary, or punitive damages in connection
                                    with any such Disputes.

                           (ii)     The arbitration proceeding shall be
                                    conducted in Midland, Texas before a panel
                                    of three (3) arbitrators appointed in
                                    accordance with the Commercial Arbitration
                                    Rules of the AAA. The arbitrators shall
                                    conduct a hearing as soon as reasonably
                                    practicable after appointment of the third
                                    arbitrator, and a final decision completely
                                    disposing of all Disputes that are the
                                    subject of the arbitration proceedings shall
                                    be rendered by the arbitrators as soon as
                                    reasonably practicable after the hearing.
                                    There shall be no transcript of the hearing
                                    before the arbitrators. The arbitrators'
                                    ultimate decision after final hearing shall
                                    be in writing, but shall be as brief as
                                    possible, and the arbitrators shall not
                                    assign reasons for their ultimate decision.

                           (iii)    The fees and expenses of the arbitrators
                                    shall be borne equally by the parties, but
                                    the decision of the arbitrators may include
                                    such award of the arbitrators' fees and
                                    expenses and of other costs and attorneys'
                                    fees as the arbitrators determine
                                    appropriate.

                           (iv)     To the fullest extent permitted by law, the
                                    arbitration proceeding and the arbitrators'
                                    award shall be maintained in confidence by
                                    the parties.

                           (v)      The award of the arbitrators shall be
                                    binding upon the parties and final and
                                    nonappealable to the maximum extent
                                    permitted by law, and judgment thereon may
                                    be entered by a court of competent
                                    jurisdiction and enforced by any party as a
                                    final judgment of such court.

                 (e) All applicable statutes of limitation and defenses based
upon the passage of time shall be tolled while the procedures specified in
Sections 10.02(b) and (c) are pending. The parties will take such actions, if
any, as may be required to effectuate such tolling.

                 (f) Each party is required to continue to perform its
obligations under this Agreement pending final resolution of any Dispute covered
by this Article X.

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

        Section 11.01 AMENDMENT AND MODIFICATION. Subject to applicable law,
this Agreement may be amended, modified, or supplemented only by writing duly
executed by all of the parties hereto.

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ACQUISITION AGREEMENT                                                    PAGE 29
<PAGE>   30

        Section 11.02 WAIVER OF COMPLIANCE. Any failure of the Stock Sellers,
the Company, or GSSWD, on the one hand, or Purchaser, on the other, to comply
with any obligation, covenant, agreement or condition contained herein may be
expressly waived in writing by Purchaser or Stock Sellers, the Company, and
GSSWD, respectively; provided, however, such waiver or failure to insist upon
strict compliance shall not operate as a waiver of, or estoppel with respect to,
any subsequent or other failure.

        Section 11.03 NOTICES. All notices, requests, demands, and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given if delivered by hand (including, without
limitation, by overnight courier), transmitted by facsimile, or mailed,
certified or registered mail (return receipt requested) with postage prepaid:

                  (a) if to Stock Sellers or the Company (only until the
                      Closing Date) or GSSWD, to:

                      Mr. Royce Crowell (Sr.)
                      Gold Star Service Company, Inc.
                      Box 1480
                      Eunice, New Mexico 88231
                      Fax: (____) _____________

with a copy to:

                      Gary Don Reagan, P. A.
                      501 North Linam
                      Hobbs, New Mexico 88241
                      Fax: (505) 393-2252.

or to such other person or addresses as Stock Sellers or the Company shall
furnish Purchaser in writing in accordance with this Section 11.03; and

                  (b) if to Purchaser (or to the Company after Closing),
                      to:

                      Sierra Well Service, Inc.
                      406 N. Big Spring
                      Midland, Texas 79701
                      Telephone: (915) 570-0829
                      Fax: (915) 570-0598
                      Attention: Kenneth V. Huseman, President

with a copy to:

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ACQUISITION AGREEMENT                                                    PAGE 30
<PAGE>   31

                           Kerr & Ward, L. L. P.
                           500 W. Texas, Suite 1310
                           Midland, Texas 79701
                           Telephone: (915) 684-9990
                           Fax: (915) 684-9997
                           Attention: William M. Kerr, Jr.

or to such other persons or addresses as Purchaser shall furnish to Stock
Sellers and the Company in writing in accordance with this Section 11.03.

        Delivery of notices shall be effective only upon actual receipt by the
intended recipient (or, in the case of facsimile transmission, the completion of
such transmission during the recipient's normal business hours).

        Section 11.04 SURVIVAL. This Agreement is intended in part to evidence
the continuing rights and obligations of the parties following Closing, and,
except as may otherwise be expressly provided herein, all of the
representations, warranties, covenants, and obligations of the parties are
hereby expressly made to survive Closing.

        Section 11.05 EXPENSES. Purchaser shall pay its own fees and expenses,
including, without limitation, professional fees and expenses, incurred in
connection with the negotiation, execution, and performance of this Agreement
and the transactions contemplated hereby. All fees and expenses of Stock Seller
and GSSWD and all fees and expenses of the Company for periods to and including
the Closing Date, including, without limitation, professional fees and expenses,
incurred in connection with the negotiation, execution, and performance of this
Agreement and the transactions contemplated hereby, shall be borne and paid
exclusively by Stock Sellers.

        Section 11.06 BINDING NATURE; NO THIRD PARTY BENEFICIARIES. This
Agreement and all of the provisions hereof shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and permitted
assigns. Nothing contained herein, express or implied, is intended to confer on
any person other than the parties hereto or their respective successors and
permitted assigns, any rights, remedies, obligations or liabilities under or by
reason of this Agreement.

        Section 11.07 GOVERNING LAW. This Agreement, and the legal relations
among the parties hereto arising from this Agreement, shall be governed by and
construed in accordance with the laws of the State of New Mexico, without regard
to its conflicts of laws rules.

        Section 11.08 ENTIRE AGREEMENT. This Agreement (including the exhibits
and schedules hereto and the other instruments referred to herein) embodies the
entire agreement and understanding of the parties hereto in respect of the
subject matter contained herein. There are no restrictions, promises,
warranties, covenants or undertakings, other than those expressly set forth or
referred to

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ACQUISITION AGREEMENT                                                    PAGE 31
<PAGE>   32

herein. This Agreement supersedes all prior agreements and understandings among
the parties with respect to such subject matter.

         Section 11.09 HEADINGS. The headings contained in this Agreement are
inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

         Section 11.10 COUNTERPARTS. This Agreement may be executed
simultaneously in two or more counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument.

         Section 11.11 SEVERABILITY. If any provision of this Agreement is held
to be illegal, invalid, or unenforceable under present or future law, such
provision shall be fully severable and this Agreement shall be construed and
enforced as if such illegal, invalid, or unenforceable provision had never
comprised a part hereof, and the remaining provisions hereof shall remain in
full force and effect and shall not be affected by the illegal, invalid, or
unenforceable provision or by its severance herefrom. Furthermore, in lieu of
such illegal, invalid, or unenforceable provision, there shall be added
automatically, as part of this Agreement, a provision as similar in terms and
substance to such illegal, invalid, or unenforceable provision as may be
possible and legal, valid, and enforceable.

                     [THIS SPACE INTENTIONALLY LEFT BLANK]

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ACQUISITION AGREEMENT                                                    PAGE 32
<PAGE>   33

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and made and entered into as of the date first set forth above.

                                        THE STOCK SELLERS:

                                        /s/ ROYCE CROWELL SR.
                                        ------------------------------------
                                        ROYCE CROWELL (SR.)

                                        /s/ EMMA JO CROWELL
                                        ------------------------------------
                                        EMMA JO CROWELL

                                        /s/ DEAN CROWELL
                                        ------------------------------------
                                        DEAN CROWELL

                                        /s/ PAMELA FISHER
                                        ------------------------------------
                                        PAMELA FISHER

                                         /s/ ROYCE E. CROWELL, JR.
                                        ------------------------------------
                                        ROYCE E. CROWELL, JR.

                                        THE COMPANY:

                                        GOLD STAR SERVICE COMPANY,
                                        INC., a New Mexico corporation

                                        By: /s/ ROYCE CROWELL SR.
                                            ----------------------------------
                                        Printed Name: ROYCE CROWELL SR.
                                                      ------------------------
                                        Title: President
                                               -------------------------------

                                        GOLD STAR SWD, LTD. CO., a New
                                        Mexico limited liability company

                                        By: /s/ ROYCE CROWELL SR.
                                            ------------------------------------
                                        Printed Name: ROYCE CROWELL SR.
                                                      --------------------------
                                        Title: Manager
                                               ---------------------------------

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ACQUISITION AGREEMENT                                                    PAGE 33
<PAGE>   34

                                        PURCHASER:

                                        SIERRA WELL SERVICE, INC., a
                                        Delaware corporation

                                        By:  /s/ CHARLES SWIFT
                                            ------------------------------------
                                        Printed Name:  Charles Swift
                                                      --------------------------
                                        Title:  Vice President
                                               ---------------------------------

LIST OF EXHIBITS AND SCHEDULES
------------------------------

EXHIBIT A                     THE DISPOSAL AND BRINE FACILITIES
EXHIBIT B                     THE NOTE
EXHIBIT C                     THE SECURITY AGREEMENT
EXHIBIT D                     THE FINANCIAL STATEMENTS
EXHIBIT E                     THE ASSIGNMENT AND BILL OF SALE
EXHIBIT F                     FORM EMPLOYMENT AGREEMENT
EXHIBIT G                     FORM NON-COMPETITION AGREEMENT
EXHIBIT H                     YARD LEASES

SCHEDULE 1.02                 EXCLUDED ASSETS
SCHEDULE 2.08                 EXTRAORDINARY TRANSACTIONS
SCHEDULE 2.10                 EMPLOYEE BENEFIT PLANS
SCHEDULE 2.12(a)              REAL PROPERTY
SCHEDULE 2.12(b)              PERSONAL PROPERTY
SCHEDULE 2.13                 EXISTING LIENS
SCHEDULE 2.18                 CONTRACTS
SCHEDULE 2.21                 INSURANCE POLICIES
SCHEDULE 2.22                 BANK ACCOUNTS
SCHEDULE 2.23                 OTHER LIABILITIES
SCHEDULE 2.25                 TRANSACTIONS WITH AFFILIATES
SCHEDULE 5.14                 PERSONAL GUARANTIES OF STOCK SELLERS

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ACQUISITION AGREEMENT                                                    PAGE 34
<PAGE>   35

                                    EXHIBIT B

                             SECURED PROMISSORY NOTE

$600,000.00                     Eunice, New Mexico            ____________, 2000

         FOR VALUE RECEIVED, the undersigned, SIERRA WELL SERVICE, INC., a
Delaware corporation ("Maker"), promises to pay to the order of [TO BE
DESIGNATED BY STOCK SELLERS] ("Payee"), at Box 1480, Eunice, Lea County, New
Mexico 88231, the principal sum of SIX HUNDRED THOUSAND AND NO/100 DOLLARS
($600,000.00), together with interest on the unpaid principal balance from day
to day outstanding prior to default or maturity at a floating per annum rate
which shall from quarter to quarter be equal to the lesser of (i) the Prime Rate
(hereinafter defined) in effect hereunder (the "Established Rate") (calculated
on the basis of actual days elapsed in a year consisting of 365 or 366 days, as
appropriate) or (ii) the Maximum Rate (hereinafter defined) (calculated on the
basis of actual days elapsed in a year consisting of 365 or 366 days, as
appropriate). The interest rate on this Note shall initially be determined as of
the first Friday most immediately preceding the date of this Note that is a
business day (the "Initial Determination Date") and shall thereafter be
redetermined quarterly until maturity based upon the Prime Rate in effect as of
the first Friday most immediately preceding each ensuing calendar quarter from
the date hereof that is a business day (each such date being hereinafter
referred to as a "Redetermination Date"). Each change in the rate of interest
charged hereunder shall, subject to the terms hereof, become effective, without
notice to Maker, upon the applicable quarterly adjustment date (as opposed to
the Redetermination Date). If at any time and from time to time the Established
Rate exceeds the Maximum Rate, thereby causing the interest payable to be
limited to the Maximum Rate, then any subsequent reduction in the Established
Rate shall not reduce the rate of interest hereunder below the Maximum Rate
until the total amount of interest accrued hereon equals the amount of interest
that would have accrued if the Established Rate had at all times been in effect.
All past due principal of and accrued interest on this Note shall bear interest
at the Maximum Rate.

         As used herein, "Prime Rate" shall mean the floating rate of interest
denominated and published as such by the Wall Street Journal on the Initial
Determination Date and thereafter on each applicable Redetermination Date.

         As used herein, "Maximum Rate" shall mean the maximum non-usurious rate
of interest that at any time, or from time to time, may be contracted for,
taken, reserved, charged, or received under applicable law on the indebtedness
evidenced by this Note, after taking into account, to the extent required by
applicable law, any and all relevant payments, charges, or other amounts under
this Note and all instruments securing payment of this Note.

         The principal of and accrued interest on this Note are due and payable
one year from the date hereof. This Note may be prepaid in whole or in part
without penalty. Partial prepayments shall be applied first to any accrued and
unpaid interest and the balance remaining, if any, to principal.

         This Note is secured by that certain Security Agreement of even date
herewith, between Gold Star Service Company, Inc., as Grantor, and Payee, as
Secured Party, covering all of the collateral therein described.

         It is understood and agreed that in the event of default in the payment
of this Note or any installment hereof, principal or interest, and if such
default shall continue unremedied for more than ten (10) days

--------------------------------------------------------------------------------
ACQUISITION AGREEMENT                                                    PAGE 36
<PAGE>   36

following written notice thereof from Payee to Maker, or in the event of any
default (other than non-payment of this Note) in any instrument securing payment
of this Note and if such default shall continue unremedied for more than thirty
(30) days following written notice thereof from Payee to Maker, the entire
principal balance of and all accrued and unpaid interest on this Note shall at
once become due and payable without notice, at the option of Payee. Failure by
Payee to exercise this option on any one or more occasions shall not constitute
a waiver of the right to exercise such option in the event of subsequent
default.

         Except as otherwise herein expressly provided, the makers, signers,
sureties, and endorsers of this Note jointly and severally waive demand,
presentment, notice of dishonor, notice of intent to demand or accelerate
payment hereof, diligence in collecting, grace, notice, and protest, and agree
to one or more extensions for any period or periods of time and partial
payments, before or after maturity, without prejudice to Payee; and if this Note
shall be collected by legal proceedings or through probate or bankruptcy court,
or shall be placed in the hands of an attorney for collection after default or
maturity, Maker agrees to pay all costs of collection, including reasonable
attorney's fees.

         All agreements between Maker and Payee, whether now existing or
hereafter arising and whether written or oral, are hereby limited so that under
no contingency, whether by reason or demand for payment or acceleration of the
maturity hereof or otherwise, shall the interest contracted for, charged, or
received by Payee exceed the Maximum Rate. If, for any circumstance whatsoever,
interest would otherwise be payable to Payee in excess of the Maximum Rate, the
interest payable to Payee hereunder shall be reduced to the Maximum Rate; and if
for any circumstance Payee shall ever receive anything of value deemed interest
by applicable law in excess of the Maximum Rate, then an amount equal to any
such excess shall be applied to the reduction of the principal hereof and not
the payment of interest, or if such excessive interest exceeds the unpaid
balance of principal hereof, such excess shall be refunded to Maker. All
interest paid or agreed to be paid to Payee shall, to the extent permitted by
applicable law, be amortized, prorated, allocated, and spread throughout the
full period until payment in full of the principal (including the period of any
renewal or extension hereof) so that the interest hereon for such full period
shall not exceed the Maximum Rate.

         Any provisions of this Agreement to the contrary notwithstanding, if
Maker shall successfully conclude an initial public offering of common stock in
Maker through a nationally recognized stock exchange at any time prior to
maturity or payment in full of this Note, whether stated or by acceleration,
(the "Sierra IPO"), Maker and Payee agree to convert the unpaid balance of this
Note to unregistered common stock in Maker at a per share price equivalent to
the per share price at which Maker issued its common stock in the Sierra IPO
within forty-five (45) business days following successful conclusion of the
Sierra IPO. Maker and Payee shall effectuate such conversion of indebtedness for
stock through the delivery of this Note by Payee to Maker, marked "PAID," in
return for the delivery by Maker of the requisite number of shares of its
unregistered common stock to Payee.

         This Note is in all respects subject to that certain Stock Purchase
Agreement dated as of March 14, 2000, between Payee, as Stock Sellers, Gold Star
Service Company, Inc., as the Company, Gold Star Swd Ltd. Co., and Maker, as
Purchaser.

         This Note shall be governed by and construed in accordance with the
laws of the State of New Mexico.

                                        SIERRA WELL SERVICE, INC.

                                        By:
                                            ------------------------------------
                                        Printed Name:
                                                      --------------------------
                                        Title:
                                               ---------------------------------

--------------------------------------------------------------------------------
ACQUISITION AGREEMENT                                                    PAGE 37

<PAGE>   37

                    FIRST AMENDMENT TO ACQUISITION AGREEMENT

         THIS FIRST AMENDMENT TO ACQUISITION AGREEMENT ("First Amendment") is
made and entered into as of the 20th day of March 2000, between ROYCE CROWELL
(SR.), EMMA JO CROWELL, DEAN CROWELL, PAMELA FISHER, and ROYCE E. CROWELL, JR.
(the "Stock Sellers"), GOLD STAR SERVICE COMPANY, INC., a New Mexico corporation
(the "Company"), GOLD STAR SWD, LTD. CO., a New Mexico limited liability company
("GSSWD"), and SIERRA WELL SERVICE, INC., a Delaware corporation ("Purchaser"),
with reference to the following:

                                    RECITALS

         A. The Stock Sellers, the Company, GSSWD, and Purchaser are parties to
that certain Acquisition Agreement (the "Agreement") dated as of March 14, 2000,
relating to, among other things, the sale and purchase of all of the issued and
outstanding capital stock of the Company and of certain related assets.

         B. The Stock Sellers, the Company, GSSWD, and Purchaser wish to amend
the Agreement upon the terms which follow.

                                    AGREEMENT

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

         1.       EXTENSION OF CLOSING DATE. The Stock Sellers, the Company,
GSSWD, and Purchaser hereby modify and amend existing Section 8.01 of the
Agreement to read as follows:

                  Section 8.01 CLOSING. The closing ("Closing") of the
                  transaction contemplated hereby shall take place at the
                  offices of Purchaser at 406 N. Big Spring, Midland, Texas, on
                  a business date of Purchaser's unilateral selection within
                  thirty (30) days following any successful completion by
                  Purchaser of an initial public offering of common stock in the
                  Company through a recognized national stock exchange (the
                  "Sierra IPO"), but in no event later than June 30, 2000, or at
                  such other place and time as the parties hereto might
                  hereafter mutually agree in writing. Such date or any
                  alternative date so selected by the parties is referred to in
                  this Agreement as the "Closing Date." Purchaser shall afford
                  the Stock Sellers, the Company, and GSSWD at least ten (10)
                  days prior written notice of its desired Closing Date pursuant
                  to the foregoing.

         2.       DEFINITIONS.  Except as expressly indicated otherwise herein,
capitalized terms in this First Amendment shall have the same meanings as are
ascribed to them in the Agreement.

<PAGE>   38

         3.       CONFIRMATION. The parties hereto hereby ratify, confirm, and
adopt the Agreement, as amended hereby. Except as modified hereby, the Agreement
remains in full force and effect.

         4.       FAX; COUNTERPARTS. This First Amendment may be executed by
fax and in multiple counterparts.

         IN WITNESS WHEREOF, the parties hereto have executed and delivered this
First Amendment as of the day and year first above written.

                                        THE STOCK SELLERS:

                                        /s/ ROYCE CROWELL SR.
                                        ------------------------------------
                                        ROYCE CROWELL (SR.)

                                        /s/ EMMA JO CROWELL
                                        ------------------------------------
                                        EMMA JO CROWELL

                                        /s/ DEAN CROWELL
                                        ------------------------------------
                                        DEAN CROWELL

                                        /s/ PAMELA FISHER
                                        ------------------------------------
                                        PAMELA FISHER

                                        /s/ ROYCE E. CROWELL, JR.
                                        ------------------------------------
                                        ROYCE E. CROWELL, JR.

                                        THE COMPANY:

                                        GOLD STAR SERVICE COMPANY,
                                        INC., a New Mexico corporation

                                        By: /s/ ROYCE CROWELL
                                            --------------------------------
                                        Printed Name: ROYCE CROWELL
                                                     -----------------------
                                        Title: PRESIDENT
                                               -----------------------------

                                        GOLD STAR SWD, LTD. CO., a New
                                        Mexico limited liability company

                                        By: /s/ ROYCE CROWELL
                                            --------------------------------
                                        Printed Name: ROYCE CROWELL
                                                     -----------------------
                                        Title: MANAGER
                                               -----------------------------

                                        PURCHASER:

                                        SIERRA WELL SERVICE, INC., a
                                        Delaware corporation

                                        By: /s/ CHARLES SWIFT
                                            --------------------------------
                                        Printed Name: CHARLES SWIFT
                                                     -----------------------
                                        Title: VICE PRESIDENT
                                               -----------------------------

--------------------------------------------------------------------------------
FIRST AMENDMENT TO ACQUISITION AGREEMENT                                  PAGE 2

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