Clayton Williams Energy has reported plans to increase capital spending for the remainder of 2009 in response to lower drilling and completion costs and higher oil prices.

The Company now plans to begin two major drilling projects during the last half of 2009 in the Permian Basin and Austin Chalk, two of its core oil-producing areas. The two projects will utilize up to five drilling rigs owned by Desta Drilling to drill the available locations in both of these areas. Desta Drilling is the operating name for Larclay LP, a wholly-owned subsidiary of the Company.

Clayton W. Williams, Jr., President said, "Over the past several months, we have worked hard to lock in our drilling and completion costs. Since we can control costs more effectively by using our own drilling rigs and by entering into firm pricing arrangements with our service providers, we feel confident in our ability to carry out our current plan under existing market conditions."

For the year ending December 31, 2009, the Company now plans to spend approximately $107.7 million on exploration and development activities, as compared to the previous estimate of approximately $78.5 million. The majority of the spending increases relate to drilling in the Permian Basin and Austin Chalk areas.

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