Levi & Korsinsky, LLP Investigates Possible Breach of Fiduciary Duty by the Board of Allis-Chalmers Energy Inc. (ALY)

Levi & Korsinsky is investigating the Board of Directors of Allis-Chalmers Energy Inc. ALY for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Seawell Limited. Under the terms of the transaction, Allis-Chalmers shareholders will have the right to elect to receive either $4.25 in cash or 1.15 Seawell common shares for each share they own, subject to pro-ration if more than 35% of the shares elect to receive cash, placing the total value of the transaction at approximately $890 million (including assumed debt). The investigation concerns whether the Allis-Chalmers Board of Directors breached their fiduciary duties to Allis-Chalmers stockholders by failing to adequately shop the Company before entering into this transaction and whether Seawell is underpaying for Allis-Chalmers shares, thus unlawfully harming Allis-Chalmers stockholders. In particular, Allis-Chalmers stock traded at $4.57 per share as recently as January 14, 2010 and at least one analyst set a price target for Allis-Chalmers stock at $7.00 per share.