<HTML>
<HEAD>
<TITLE>sv8</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>As filed with the Securities and Exchange Commission on November&nbsp;19, 2004</B>



<P align="right" style="font-size: 10pt"><B>Registration Number 333-________</B>


<HR size="4" noshade color="#000000" style="margin-top: -5px">
<HR size="1" noshade color="#000000" style="margin-top: -10px">





<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>


<P align="center" style="font-size: 10pt"><HR size="1" noshade width="10%" align="center" color="#000000">


<P align="center" style="font-size: 18pt"><B>FORM S-8</B>

<DIV align="center" style="font-size: 12pt"><B>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B>
</DIV>

<P align="center" style="font-size: 24pt"><B>Grey Wolf, Inc.</B>

<DIV align="center" style="font-size: 8pt"><B>(Exact Name of Registrant as Specified in its Charter)</B></DIV>


<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="85%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>

<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Texas<BR>
(State or Other Jurisdiction of<BR>
Incorporation or Organization)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>10370 Richmond Avenue, Suite&nbsp;600<BR>
Houston, Texas 77042-4136<BR>
(713)&nbsp;435-6100<BR>
(Address of Principal Executive Offices)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>74-2144774<BR>
(I.R.S. Employer<BR>
Identification Number)</B></TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;<BR>
<B>GREY WOLF, INC.<BR>
2003 INCENTIVE PLAN</B>


<DIV align="center" style="font-size: 8pt"><B>(Full title of the Plan)</B></DIV>



<P align="center" style="font-size: 10pt"><B>David W. Wehlmann<BR>
Executive Vice President and Chief Financial Officer<BR>
10370 Richmond Avenue, Suite&nbsp;600<BR>
Houston, Texas 77042-4136<BR>
Telephone: (713)&nbsp;435-6100<BR>
Fax: (713)&nbsp;435-6171</B>


<DIV align="center" style="font-size: 8pt"><B>(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent for Service)</B></DIV>



<P align="center" style="font-size: 10pt"><B><I>Copies to:</I></B>



<P align="center" style="font-size: 10pt"><B>Nick D. Nicholas<BR>
Porter &#038; Hedges, L.L.P.<BR>
700 Louisiana, 35th Floor<BR>
Houston, Texas 77002-2764<BR>
(713)&nbsp;226-0600<BR>
Fax (713)&nbsp;226-0237</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="17"><B>CALCULATION OF REGISTRATION FEE</B><HR size="2" noshade color="#000000"></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Proposed Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Proposed Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Title of Each Class of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aggregate Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Securities to be Registered</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>be Registered</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price Per Share</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Registration Fee</B></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="17" align="left"><HR size="1" noshade color="#000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Common stock, par value
$0.10 per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7,108,845 </TD>
    <TD nowrap>(1)(2)(3)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">5.15</TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">36,610,552</TD>
    <TD nowrap>(2)(4)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">4,639</TD>
    <TD nowrap>(2)(4)(5)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left"><HR size="2" noshade color="#000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<TABLE width="100%" border="0" cellpadding="2" cellspacing="1" style="font-size: 10pt">
<TR valign="top" style="font-size: 8pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pursuant to Rule 416(a) under the Securities Act of 1933, as amended (the
&#147;Securities Act&#148;), also registered hereunder is an indeterminate number of
 shares which become issuable by reason of any stock splits, stock
dividends, recapitalization or any other similar transaction affected
without the receipt of consideration which results in an increase in the
number of the registrant&#146;s outstanding shares of common stock.</TD>
</TR>

<TR valign="top" style="font-size: 8pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Does not include 9,891,155 shares covered by previous registration
statements and included in the combined prospectus filed herewith pursuant
to Rule&nbsp;429. The applicable registration fees for these shares were paid
in full at the time of the filing of each previous registration statement
covering shares of common stock.</TD>
</TR>

<TR valign="top" style="font-size: 8pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Also being registered are the rights to purchase shares of Series&nbsp;B
Junior Participating Preferred Stock, which are attached to the shares of
common stock registered hereby. These rights, if issued, will be issued
for no additional consideration. Pursuant to Rule 457(g) under the
Securities Act, no additional registration fee is required in connection
with the registration of the rights.</TD>
</TR>

<TR valign="top" style="font-size: 8pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Estimated pursuant to Rule 457(c) under the Securities Act solely for the
purpose of computing the registration fee, based upon the average high and
low price of the common stock as reported on the American Stock Exchange
on November&nbsp;18, 2004.</TD>
</TR>

<TR valign="top" style="font-size: 8pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pursuant to Rule 457(p) under the Securities Act, $4,639 of
the fee that was previously paid in respect of the
7,108,845&nbsp;shares of common stock being carried forward from the
registrant&#146;s registration statement on Form&nbsp;S-8 (Reg. No.
333-90888) will be used to offset the registration fees for this
registration statement. Accordingly, no additional payment will be
made in connection with this registration statement.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Pursuant
to the provisions of Rule&nbsp;429 under the Securities Act of 1933,
as amended, the prospectus contained in this Registration Statement
also relates to 9,891,155&nbsp;shares of common stock covered by the
following Registration Statements on Form&nbsp;S-8: 333-19027,
333-41334 and 333-90888. The registration fees with respect to the
9,891,155&nbsp;shares of common stock were previously paid.</B>


<P>
<HR size="1" noshade color="#000000" style="margin-top: -2px">
<HR size="4" noshade color="#000000" style="margin-top: -10px">






<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">








<P align="center" style="font-size: 10pt"><B>PART I</B>



<P align="center" style="font-size: 10pt"><B>INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following documents listed under this Part&nbsp;I and the documents
incorporated by reference under Item&nbsp;3 of Part&nbsp;II to this Form S-8, taken
together, constitute a prospectus that meets the requirements of Section 10(a)
of the Securities Act of 1933, and are incorporated herein by reference.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;1. Plan Information</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information required to be provided to participants pursuant to this
Item is set forth in the Information Memorandum for the Grey Wolf, Inc. 2003
Incentive Plan.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;2. Registration Information and Employee Plan Annual Information</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The written statement required to be provided to participants pursuant to
this Item is set forth in the Information Memorandums referenced in Item&nbsp;1
above.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 12pt"><B>PROSPECTUS</B>


<P align="center" style="font-size: 14pt"><B>11,687,305 Shares</B>



<P align="center" style="font-size: 20pt"><B>GREY WOLF, INC.</B>



<P align="center" style="font-size: 14pt"><B>COMMON STOCK</B>



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="15%" align="center" color="#000000">



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling shareholders identified in this prospectus are offering up to
11,687,305 shares of our common stock which are currently issued and
outstanding or are issuable by us upon exercise of options held by the selling
shareholders. We are not offering any shares of our common stock for sale
under this prospectus and we will not receive any of the proceeds from the sale
of shares by selling shareholders under this prospectus. We will file a
supplemental prospectus if required to do so by applicable securities laws to
describe specific sales of shares or to identify any selling shareholders not
listed in this prospectus.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling shareholders may sell shares of our common stock from time to
time in transactions:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on the exchanges or quotation systems on which our common
stock may then be listed or quoted;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the over-the-counter market;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in transactions otherwise than on such exchanges or services
or in the over-the-counter market; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any combination of the foregoing.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales of shares of common stock may be made at fixed prices which may be
changed, at market prices prevailing at the time of sale, at prices related to
such prevailing market prices or at negotiated prices.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is traded on the American Stock Exchange under the symbol
&#147;GW.&#148; On November&nbsp;18, 2004, the last reported sale price of our common stock
was $5.17&nbsp;per share.


<P align="center" style="font-size: 10pt"><HR size="1" noshade width="15%" align="center" color="#000000">



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investing in our common stock involves risks. Consider carefully the risk
factors beginning on page 3 of this prospectus.</B>


<P align="center" style="font-size: 10pt"><HR size="1" noshade width="15%" align="center" color="#000000">



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if
this prospectus is truthful or complete. Any representation to the contrary is
a criminal offense.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is dated November&nbsp;19, 2004.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>TABLE OF CONTENTS</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="92%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B><HR size="1" noshade color="#000000"></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#101">Summary</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#102">Risk Factors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#103">Where You Can Find More Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#104">Forward-Looking Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#105">Selling Shareholders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#106">Plan of Distribution</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#107">Legal Matters</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#108">Independent Registered Public Accounting Firm</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h18767exv4w2.htm">Form of Non-Qualified Stock Option Agmt for Employees</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h18767exv4w3.htm">Form of Non-Qualified Stock Option Agmt for Non-Employee Directors</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h18767exv4w4.htm">Non-Qualified Stock Option Agmt for Thomas P. Richards</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h18767exv5w1.htm">Opinion of Porter & Hedges, L.L.P.</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="h18767exv23w1.htm">Consent of KPMG LLP</A></FONT></TD></TR>
</TABLE>
</DIV>


<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt"><HR size="1" noshade width="15%" align="center" color="#000000">



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely only on the information contained or incorporated by
reference in this prospectus or in a prospectus supplement. We have not
authorized anyone to provide you with information that is different. If anyone
provides you with different or inconsistent information you should not rely on
it. We are not making an offer of these securities in any state where the
offer is not permitted. You should not assume that the information contained
in this prospectus, any accompanying prospectus, any accompanying prospectus
supplement or any document incorporated by reference in this prospectus is
accurate as of any date other than the date of the document containing the
information.


<P align="center" style="font-size: 10pt">1
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="101"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>SUMMARY</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>This prospectus describes our common stock and the general manner in which
the selling stockholders may offer our common stock. We urge you to read this
summary together with the information contained in other parts of this
prospectus and the documents we incorporate by reference before making a
decision about whether to invest in the common stock of Grey Wolf, Inc.</I>


<P align="center" style="font-size: 10pt"><B>Our Company</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a leading provider of contract land drilling services in the United
States with a domestic fleet of 127 rigs, of which 99 rigs are currently
marketed. We currently have 13 cold stacked rigs, which can be redeployed as
demand dictates, bringing our total marketed fleet to 112. In addition, we
have 15 rigs that can be refurbished out of inventory as demand dictates. We
conduct substantially all of our operations through our subsidiaries. Our
customers are independent producers and major oil and gas companies.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conduct our operations primarily in markets that we believe have
historically had greater utilization rates and dayrates than the average rates
of all other domestic markets. Our customers use our services principally in
drilling for natural gas. Natural gas reserves are typically found in deeper
geological formations and generally require premium equipment and quality
crews, such as we offer, to drill the wells. During 2003, approximately 98% of
the wells that we drilled for our customers were drilled in search of natural
gas.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal office is located at 10370 Richmond Avenue, Suite&nbsp;600,
Houston, Texas 77042-4136, and our telephone number is (713)&nbsp;435-6100. We
maintain a website at http://www.gwdrilling.com, where general information
about us is available. We are not incorporating the contents of our website
into this prospectus.


<P align="center" style="font-size: 10pt"><B>The Offering</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="96%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="68%">&nbsp;</TD>
</TR>

<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Issuer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Grey Wolf, Inc.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Common stock offered by the<BR>
selling shareholders
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Up to 11,687,305 shares</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Use of proceeds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">All of the proceeds from the sale of common stock covered by this
prospectus will be received by the selling shareholders. We will
not receive any proceeds from the sale of the common stock
covered by this prospectus.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">American Stock Exchange<BR>
symbol
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">GW</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="102"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>RISK FACTORS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>In considering whether to purchase our common stock, we urge you to
carefully consider all the information we have included and incorporated by
reference in this prospectus and any prospectus supplement. In particular, we
urge you to carefully consider the risk factors described below and other
information contained or incorporated by reference in this prospectus. In
addition, we urge you to read &#147;Forward-Looking Statements,&#148; where we describe
additional uncertainties associated with our business and forward-looking
statements in this prospectus.</I>


<P align="center" style="font-size: 10pt"><B>RISKS RELATED TO OUR BUSINESS</B>


<P align="left" style="font-size: 10pt"><B><I>A material or extended decline in expenditures by the oil and gas industry, due
to a decline or volatility in oil and gas prices, a decrease in demand for oil
and gas or other factors, would reduce our revenue and income.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a supplier of land drilling services, our business depends on the level
of drilling activity by oil and gas exploration and production companies
operating in the geographic markets where we operate. The number of wells they
choose to drill is strongly influenced by past trends in oil and natural gas
prices, current prices and their outlook for future prices. Low oil and natural
gas prices, or the perception among oil and gas companies that prices are
likely to decline, can materially and adversely affect us in many ways,
including:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our revenues, cash flows and earnings;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the fair market value of our rig fleet, which in turn could
trigger a writedown of the carrying value of these assets for
accounting purposes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to maintain or increase our borrowing capacity;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to obtain additional capital to finance our
business and make acquisitions, and the cost of that capital; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to retain skilled rig personnel who we would need
in the event of an increase in the demand for our services.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depending on the market prices of oil and natural gas, oil and gas
exploration and production companies may cancel or curtail their drilling
programs, thereby reducing demand for our services. Even during periods when
prices for oil and natural gas are high, companies exploring for oil and
natural gas may cancel or curtail their drilling programs for a variety of
other reasons beyond our control. Any reduction in the demand for drilling
services may materially erode dayrates, the prices we receive for our turnkey
drilling services and the utilization rates for our rigs, any of which could
adversely affect our financial results. Oil and natural gas prices have been
volatile historically and, we believe, will continue to be so in the future.
Many factors beyond our control affect oil and natural gas prices, including:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>weather conditions in the United States and elsewhere;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>economic conditions in the United States and elsewhere;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>actions by OPEC, the Organization of Petroleum Exporting Countries;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>political instability in the Middle East, Venezuela and other major producing regions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>governmental regulations, both domestic and foreign;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the pace adopted by foreign governments for exploration of their national reserves; and</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the overall supply and demand for oil and natural gas.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt"><B><I>An economic downturn may adversely affect our business.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An economic downturn may cause reduced demand for petroleum-based products
and natural gas. In addition, many oil and natural gas production companies
often reduce or delay expenditures to reduce costs, which in turn may cause a
reduction in the demand for our services during these periods. If the economic
environment worsens, our business, financial condition and results of
operations may be further adversely impacted.

<P align="left" style="font-size: 10pt"><B><I>The intense price competition and cyclical nature of our industry could have an
adverse effect on our revenues and profitability.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The contract drilling business is highly competitive with numerous
industry participants. The drilling contracts we compete for are usually
awarded on the basis of competitive bids. We believe pricing and rig
availability are the primary factors considered by our potential customers in
determining which drilling contractor to select. We believe other factors are
also important. Among those factors are:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the type and condition of drilling rigs;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the quality of service and experience of rig crews;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the safety record of the company and the particular drilling rig;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the offering of ancillary services; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the ability to provide drilling equipment adaptable to, and
personnel familiar with, new technologies and drilling techniques.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we must generally be competitive in our pricing, our competitive
strategy emphasizes the quality of our equipment, the safety record of our rigs
and the experience of our rig crews to differentiate us from our competitors.
This strategy is less effective during an industry downturn as lower demand for
drilling services intensifies price competition and makes it more difficult for
us to compete on the basis of factors other than price.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The contract drilling industry historically has been cyclical and has
experienced periods of low demand, excess rig supply, and low dayrates,
followed by periods of high demand, short rig supply and increasing dayrates.
Periods of excess rig supply intensify the competition in our industry and
often result in rigs being idle. There are numerous competitors in each of the
markets in which we compete. In all of those markets, an oversupply of rigs
can cause greater price competition. Contract drilling companies compete
primarily on a regional basis, and the intensity of competition may vary
significantly from region to region at any particular time. If demand for
drilling services improves in a region where we operate, our competitors might
respond by moving in suitable rigs from other regions. An influx of rigs from
other regions could rapidly intensify competition and make any improvement in
demand for drilling rigs short-lived.

<P align="left" style="font-size: 10pt"><B><I>We face competition from competitors with greater resources.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some of our competitors have greater financial and human resources than do
we. Their greater capabilities in these areas may enable them to:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>better withstand industry downturns;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>compete more effectively on the basis of price and technology;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>retain skilled rig personnel; and</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>build new rigs or acquire and refurbish existing rigs to be
able to place rigs into service more quickly than us in periods of
high drilling demand.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt"><B><I>Our drilling operations involve operating risks which if not adequately insured
or indemnified against could adversely affect our results of operations and
financial condition.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operations are subject to the usual risks inherent in the land drilling business including the risks of:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>blowouts;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reservoir damage;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>cratering;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fires, pollution and explosions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>collapse of the borehole;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>lost or stuck drill strings; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>damage or loss from natural disasters.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If these events occur, they can produce substantial liabilities to us which include:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>suspension of drilling operations;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>damage to the environment;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>damage to, or destruction of, our property and equipment and that of others;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>personal injury and loss of life; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>damage to producing or potentially productive oil and natural
gas formations through which we drill.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We attempt to obtain indemnification from our customers by contract for
certain of these risks under daywork contracts but are not always able to do
so. We also seek to protect ourselves from some but not all operating risks
through insurance coverage. The indemnification we receive from our customers
and our own insurance coverage may not, however, be sufficient to protect us
against liability for all consequences of disasters, personal injury and
property damage. Additionally, our insurance coverage generally provides that
we bear a portion of the claim through substantial insurance coverage
deductibles. Our insurance or indemnification arrangements may not adequately
protect us against liability from all of the risks of our business. If we were
to incur a significant liability for which we were not fully insured or
indemnified, it could adversely affect our financial position and results of
operations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our cost of insurance increased significantly in 2003 compared to prior
years, which we believe is consistent with the experience of most companies in
our industry. When we renew our current insurance policies, the premiums we pay
may again increase, which will increase our operating costs. Additionally, we
may be unable to obtain or renew insurance coverage of the type and amount we
desire at reasonable rates.

<P align="left" style="font-size: 10pt"><B><I>Business acquisitions entail numerous risks and may disrupt our business,
dilute shareholder value and distract management attention.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of our business strategy, we plan to consider acquisitions of, or
significant investments in, businesses and assets that are complementary to
ours. Any acquisition that we complete could have a material


<P align="center" style="font-size: 10pt">5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">adverse affect on our operating results and/or the price of our
securities. Acquisitions, including our recent acquisition of New Patriot
Drilling Corporation, involve numerous risks, including:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unanticipated costs and liabilities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>difficulty of integrating the operations and assets of the acquired business;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to properly access and maintain an effective
internal control environment over an acquired company, in order to
comply with the recently adopted and pending public reporting
requirements;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential loss of key employees and customers of the acquired companies; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an increase in our expenses and working capital requirements.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may incur substantial indebtedness to finance future acquisitions and
also may issue equity securities or convertible securities in connection with
any such acquisitions. Debt service requirements could represent a significant
burden on our results of operations and financial condition and the issuance of
additional equity could be dilutive to our existing stockholders. Also,
continued growth could divert the attention of our management and other
employees from our day-to-day operations and the development of new business
opportunities.

<P align="left" style="font-size: 10pt"><B><I>Our operations are subject to environmental laws that may expose us to
liabilities for noncompliance, which may adversely affect us.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many aspects of our operations are subject to domestic laws and
regulations. For example, our drilling operations are typically subject to
extensive and evolving laws and regulations governing:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>environmental quality;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pollution control; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>remediation of environmental contamination.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operations are often conducted in or near ecologically sensitive
areas, such as wetlands, which are subject to special protective measures and
which may expose us to additional operating costs and liabilities for
noncompliance with applicable laws. The handling of waste materials, some of
which are classified as hazardous substances, is a necessary part of our
operations. Consequently, our operations are subject to stringent regulations
relating to protection of the environment and waste handling which may impose
liability on us for our own noncompliance and, in addition, that of other
parties without regard to whether we were negligent or otherwise at fault.
Compliance with applicable laws and regulations may require us to incur
significant expenses and capital expenditures which could have a material and
adverse effect on our operations by increasing our expenses and limiting our
future contract drilling opportunities.

<P align="left" style="font-size: 10pt"><B><I>We have had only two profitable years since 1991.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have a history of losses with only two profitable years since 1991. In
1997, we had net income of $10.2&nbsp;million, and in 2001 we had net income of
$68.5&nbsp;million. Our ability to achieve profitability in the future will depend
on many factors, but primarily on the number of days our rigs work during any
period and the rates we charge our customers for them during that period. In
the years in which we incurred losses those losses were primarily due to the
fact that the number of days our rigs worked and the rates we were able to
charge customers for the days worked generated insufficient revenue to cover
our expenses in those years. In some years, we have also incurred charges for
impairment of our drilling equipment assets that contributed to our losses in a
year. This was the case in 2002, when we incurred a $3.5&nbsp;million asset
impairment charge and reported a loss of $21.5&nbsp;million for the year.


<P align="center" style="font-size: 10pt">6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><B><I>Unexpected cost overruns on our turnkey and footage drilling jobs could
adversely affect us.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have historically derived a significant portion of our revenues and
operating margin from turnkey and footage drilling contracts, and we expect
that they will continue to represent a significant component of our revenues.
The occurrence of operating cost overruns on our turnkey and footage jobs could
have a material adverse effect on our financial position and results of
operations. Under a typical turnkey or footage drilling contract, we agree to
drill a well for our customer to a specified depth and under specified
conditions for a fixed price. We typically provide technical expertise and
engineering services, as well as most of the equipment required for the
drilling of turnkey and footage wells. We often subcontract for related
services. Under typical turnkey drilling arrangements, we do not receive
progress payments and are entitled to be paid by our customer only after we
have performed the terms of the drilling contract in full. For these reasons,
the risk to us under turnkey and footage drilling contracts is substantially
greater than for wells drilled on a daywork basis because we must assume most
of the risks associated with drilling operations that are generally assumed by
our customer under a daywork contract.

<P align="left" style="font-size: 10pt"><B><I>We have a significant amount of indebtedness and could incur additional
indebtedness, which could materially and adversely affect our financial
condition and results of operations and prevent us from fulfilling our
obligations under our outstanding indebtedness.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have now and will continue to have a significant amount of
indebtedness. As of the date of this prospectus, our total long-term
indebtedness was approximately $275.0&nbsp;million, primarily consisting of $150.0
million in principal amount of our 3.75% Contingent Convertible Notes due 2023
(the &#147;3.75% Notes&#148;) and $125.0&nbsp;million in principal amount of our Floating Rate
Contingent Convertible Senior Notes due 2024 (the &#147;Floating Rate Notes&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our substantial indebtedness could:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increase our vulnerability to general adverse economic and industry conditions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>require us to dedicate a substantial portion of our cash flow
from operations to payments on our indebtedness thereby reducing the
availability of our cash flow to fund working capital, capital
expenditures and other general corporate purposes;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limit our flexibility in planning for, or reacting to,
changes in our business and the industry in which we operate;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>place us at a competitive disadvantage compared to our competitors that have less debt; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limit our ability to borrow additional funds.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the 3.75% Notes and the Floating Rate Notes do not limit our
ability to incur additional indebtedness, including senior indebtedness, or to
grant liens on our assets. We and our subsidiaries may incur substantial
additional indebtedness and liens on our assets in the future.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Floating Rate Notes bear interest annually at a rate equal to 3-month
LIBOR, adjusted quarterly, minus a spread of 0.05%. Although the interest rate
on the Floating Rate Notes will never be more than 6.00%, we are subject to
market risk exposure related to changes in interest rates on these notes up to
6.00%. A significant increase in the 3-month LIBOR rate would increase the
interest rate on the Floating Rate Notes and the amount of interest we pay on
these notes, which may have a material adverse effect on our financial
condition and liquidity.

<P align="left" style="font-size: 10pt"><B><I>Our credit agreement and future debt arrangements may prohibit us from
participation in certain transactions that we may consider advantageous.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our credit facility contains restrictions on our ability and the ability
of certain of our subsidiaries to engage in certain types of transactions.
These restrictive covenants may adversely affect our ability to pursue business
acquisitions. These include covenants which may prohibit or limit our ability
to:


<P align="center" style="font-size: 10pt">7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>incur additional indebtedness;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pay dividends or make other restricted payments;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>repurchase our equity securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sell material assets;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>grant or permit liens to exist on our assets;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>enter into sale and lease-back transactions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make certain investments;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>enter into transactions with related persons; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>engage in lines of business unrelated to our core land drilling business.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our credit facility also contains financial ratio covenants that are
triggered when certain conditions are met. They may also limit our ability to
respond to changes in market conditions. Our ability to meet the financial
ratio covenants of our credit agreement can be affected by events and
conditions beyond our control and we may be unable to meet those tests. We may
in the future incur additional indebtedness that may contain additional
covenants that are more restrictive than our current covenants.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If circumstances arise in which we are in default under our various credit
arrangements, our cash and other assets may be insufficient to repay our
indebtedness.

<P align="left" style="font-size: 10pt"><B><I>Credit ratings affect our ability to obtain financing and the cost of such
financing.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our credit ratings affect our ability to obtain financing and the cost of
such financing. At November&nbsp;16, 2004, our corporate credit and senior unsecured
debt ratings were B1 by Moody&#146;s Investors Service and BB&#150; by Standard &#038; Poor&#146;s
Ratings Group. On March&nbsp;10, 2004, Standard and Poor&#146;s affirmed our BB&#150; ratings
but changed its outlook to negative following a review of our proposed
acquisition of New Patriot Drilling Corporation, which we have since completed.
In determining our credit ratings, the rating agencies consider a number of
both quantitative and qualitative factors. These factors include earnings,
fixed charges such as interest, cash flows, total debt outstanding, off balance
sheet obligations and other commitments, total capitalization and various
ratios calculated from these factors. The rating agencies also consider
predictability of cash flows, business strategy, industry conditions and
contingencies. Lower ratings on our senior unsecured debt could impair our
ability to obtain additional financing and will increase the cost of the
financing that we do obtain.

<P align="left" style="font-size: 10pt"><B><I>We could be adversely affected if shortages of equipment, supplies or personnel
occur.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we are not currently experiencing any shortages, from time to time
there have been shortages of drilling equipment and supplies which we believe
could reoccur. During periods of shortages, the cost and delivery times of
equipment and supplies are substantially greater. In the past, in response to
such shortages, we have entered into agreements with various suppliers and
manufacturers that enabled us to reduce our exposure to price increases and
supply shortages. Although we have formed many informal supply arrangements
with equipment manufacturers and suppliers, we cannot assure you that we will
be able to maintain existing arrangements. Shortages of drilling equipment or
supplies could delay and adversely affect our ability to return to service our
rigs held for future refurbishment and obtain contracts for our marketed rigs,
which could have a material adverse effect on our financial condition and
results of operations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we have not encountered material difficulty in hiring and
retaining qualified rig crews, such shortages have occurred in the past in our
industry. We may experience shortages of qualified personnel to operate our
rigs, which could have a material adverse effect on our financial condition and
results of operations.


<P align="center" style="font-size: 10pt">8
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>RISKS RELATED TO OUR COMMON STOCK</B>


<P align="left" style="font-size: 10pt"><B><I>Investors in our common stock should not expect to receive dividend income, and
will be dependent on the appreciation of our common stock to earn a return on
their investment.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The decision to pay a dividend on our common stock rests with our board of
directors and will depend on our earnings, available cash, capital requirements
and financial condition. We have never declared a cash dividend on our common
stock and do not expect to pay cash dividends on our common stock for the
foreseeable future. We expect that all cash flow generated from our operations
in the foreseeable future will be retained and used to develop or expand our
business, pay debt service and reduce outstanding indebtedness. Furthermore,
the terms of our credit facility prohibit the payment of dividends without the
prior written consent of the lenders. Investors will likely have to depend on
sales of our common stock at appreciated prices, which we cannot assure, in
order to achieve a positive return on their investment in our common stock.

<P align="left" style="font-size: 10pt"><B><I>Certain provisions of our organizational documents, securities and credit
agreement have anti-takeover effects which may prevent our shareholders from
receiving the maximum value for their shares.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our articles of incorporation, bylaws, securities and credit agreement
contain certain provisions that may delay or prevent entirely a change of
control transaction not supported by our board of directors, or any transaction
which may have that general effect. These provisions include:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>classification of our board of directors into three classes,
with each class serving a staggered three year term;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>giving our board of directors the exclusive authority to
adopt, amend or repeal our bylaws and thus prohibiting shareholders
from doing so;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>requiring our shareholders to give advance notice of their
intent to submit a proposal at the annual meeting; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limiting the ability of our shareholders to call a special
meeting and act by written consent.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, the indentures under which our 3.75% Notes and Floating Rate
Notes are issued require us to offer to repurchase the 3.75% Notes and Floating
Rate Notes then outstanding at a purchase price equal to 100% of the principal
amount plus accrued and unpaid interest and liquidated damages, if any, to the
date of repurchase in the event that we become subject to a change of control,
as defined in the indentures. This feature of the indentures could also have
the effect of discouraging potentially attractive change of control offers.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furthermore, we have adopted a shareholder rights plan which may have the
effect of impeding a hostile attempt to acquire control of us.

<P align="left" style="font-size: 10pt"><B><I>Large amounts of our common stock may be resold into the market in the future
which could cause the market price of our common stock to drop significantly,
even if our business is doing well.</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of November&nbsp;16, 2004, 188.8&nbsp;million shares of our common stock were
issued and outstanding. In addition, as of November&nbsp;16, 2004, we had issued
options to purchase approximately 7.9&nbsp;million shares of our common stock, of
which options to acquire approximately 4.1&nbsp;million shares of common stock were
exercisable, 23.3&nbsp;million shares of common stock were issuable upon conversion
of the 3.75% Notes and 19.2&nbsp;million shares of common stock were issuable upon
conversion of the Floating Rate Notes. The market price of our common stock
could drop significantly if future sales of substantial amounts of our common
stock occur, or if the perception exists that substantial sales may occur.


<P align="center" style="font-size: 10pt">9
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="103"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>WHERE YOU CAN FIND MORE INFORMATION</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus constitutes a part of a registration statement on Form S-8
that we filed with the SEC under the Securities Act. This prospectus does not
contain all the information set forth in the registration statement. You
should refer to the registration statement and its related exhibits and
schedules for further information about our company and the shares offered in
this prospectus. Statements contained in this prospectus concerning the
provisions of any document are not necessarily complete and, in each instance,
reference is made to the copy of that document filed as an exhibit to the
registration statement or otherwise filed with the SEC, and each such statement
is qualified by this reference. The registration statement and its exhibits
and schedules are on file at the offices of the SEC and may be inspected
without charge.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We file annual, quarterly, and special reports, proxy statements and other
information with the Securities and Exchange Commission. You can read and copy
any materials we file with the SEC at the SEC&#146;s public reference room at 450
Fifth Street, N.W., Washington, D.C. 20549. You can obtain information about
the operation of the SEC&#146;s public reference room by calling the SEC at
1-800-SEC-0330. The SEC also maintains a Web site that contains information we
file electronically with the SEC, which you can access over the Internet at
<I>http://www.sec.gov</I>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are incorporating by reference in this prospectus information we file
with the SEC, which means that we are disclosing important information to you
by referring you to those documents. The information we incorporate by
reference is an important part of this prospectus, and later information that
we file with the SEC automatically will update and supersede this information.
We incorporate by reference the documents listed below:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our annual report on Form 10-K/A (Amendment No.&nbsp;2) for the
year ended December&nbsp;31, 2003, filed on August&nbsp;11, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our quarterly report on Form 10-Q for the quarter ended
September&nbsp;30, 2004, filed on November&nbsp;9, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our quarterly report on Form 10-Q for the quarter ended June
30, 2004, filed August&nbsp;9, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our quarterly report on Form 10-Q/A (Amendment No.&nbsp;2) for the
quarter ended March&nbsp;31, 2004, filed on August&nbsp;11, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our definitive proxy statement for our 2004 annual meeting of
shareholders filed on March&nbsp;26, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our current report on Form 8-K, filed on November&nbsp;3, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our current report on Form 8-K, filed on April&nbsp;22, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our current report on Form 8-K, filed on April&nbsp;7, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our current report on Form 8-K, filed on April&nbsp;1, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our current report on Form 8-K, filed on March&nbsp;29, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our current report on Form 8-K, filed on March&nbsp;9, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the description of our common stock contained in our current
report on Form 8-K dated October&nbsp;6, 1997; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the description of our preferred stock purchase rights
contained in our registration statement on Form 8-A/A filed with the
SEC on October&nbsp;9, 1998.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">10
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may request a copy of these filings, which we will provide to you at
no cost, by writing or telephoning us at the following address and telephone
number:


<P align="center" style="font-size: 10pt">Grey Wolf, Inc.<BR>
10370 Richmond Avenue, Suite&nbsp;600<BR>
Houston, Texas 77042<BR>
(713)&nbsp;435-6100<BR>
Attention: Investor Relations



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All documents filed by us pursuant to Sections&nbsp;13(a), 13(c), 14 or 15(d)
of the Securities Exchange Act of 1934, as amended (excluding any information
in those documents that are deemed by the rules of the SEC to be furnished but
not filed) after the date of this filing and before the termination of this
offering shall be deemed to be incorporated in this prospectus and to be a part
hereof from the date of the filing of such document. Any statement contained
in a document incorporated by reference herein shall be deemed to be modified
or superseded for all purposes to the extent that a statement contained in this
prospectus, or in any other subsequently filed document which is also
incorporated or deemed to be incorporated by reference, modifies or supersedes
such statement. Any statement so modified or superseded shall not be deemed,
except as so modified or superseded, to constitute a part of this prospectus.

<DIV align="left">
<A name="104"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>FORWARD-LOOKING STATEMENTS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus, including the information we incorporate by reference,
contains &#147;forward-looking statements&#148; within the meaning of Section&nbsp;27A of the
Securities Act of 1933, as amended, and Section&nbsp;21E of the Securities Exchange
Act of 1934, as amended. All statements other than statements of historical
facts included, or incorporated by reference, in this prospectus are
forward-looking statements, including statements regarding the following:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>business strategy;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>demand for our services;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>rig activity and financial results;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reactivation and cost of reactivation of non-marketed rigs;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>projected dayrates;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>rigs expected to be engaged in turnkey and footage operations;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>projected tax rates;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>wage rates and retention of employees;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sufficiency of our capital resources and liquidity; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>depreciation and capital expenditures.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we believe the forward-looking statements are reasonable, we
cannot assure you that these statements will prove to be correct. We have
based these statements on assumptions and analyses in light of our experience
and perception of historical trends, current conditions, expected future
development and other factors we believe were appropriate when the statements
were made. The risks and uncertainties described under &#147;Risk Factors&#148; may
cause our actual results to vary materially from those in our forward-looking
statements.


<P align="center" style="font-size: 10pt">11
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our forward-looking statements speak only as of the date specified in such
statements or, if no date is stated, as of the date of this prospectus. We
expressly disclaim any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statement contained in this
prospectus to reflect any change in our expectations or with regard to any
change in events, conditions or circumstances on which our forward-looking
statements are based.

<DIV align="left">
<A name="105"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>SELLING SHAREHOLDERS</B>



<P align="left" style="font-size: 10pt"><B>About the Shares Offered</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus relates to our registration for resale of up to 11,687,305
shares of our common stock by the selling shareholders identified below. In
some instances, the selling shareholder is the pledgee, donee or transferee of
the shares or options to acquire the shares. The shares offered hereby were
issued upon the exercise of options to acquire our shares granted pursuant to
one of our employee benefit plans to persons who were our directors, officers,
employees or consultants when they acquired their shares or options to acquire
their shares. All of the shares offered hereby may be considered either
restricted securities or control securities. Under federal securities laws
restricted securities and control securities may not be resold unless the sale
is made pursuant to an exemption from registration, such as Rule&nbsp;144 under the
Securities Act, or pursuant to an effective registration statement, like the
one of which this prospectus is a part. We have registered the resale of the
shares offered hereby to enable the selling shareholders listed below and their
pledgees, donees and transferees to sell their shares in compliance with the
securities registration requirements of federal securities law. They may,
however, choose to resell their shares under applicable exemptions from
registration, such as Rule&nbsp;144, rather than in reliance on this prospectus.


<P align="left" style="font-size: 10pt"><B>Beneficial Ownership and Shares Offered</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table identifies each selling shareholder and the total
number and percentage of shares of our common stock owned by each at November
16, 2004, as calculated in accordance with the rules of the SEC for determining
beneficial ownership of securities. It also shows the total number of shares
that each selling shareholder may choose to sell pursuant to this prospectus
and the total number and percentage of shares that will be beneficially owned
by each selling shareholder after the offering.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table assumes that all shares that may be sold by each selling
shareholder will be sold. We do not know how long the selling shareholders
will choose to continue to hold the shares covered by this prospectus, how many
shares they may choose to sell, or the methods that they may choose to make any
such sales. See &#147;Plan of Distribution.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling shareholders and certain of their respective pledgees, donees,
transferees and other successors in interest may offer all, none or a portion
of the shares of common stock offered pursuant to this prospectus. The exact
number of shares of common stock that each selling shareholder may retain upon
completion of this offering cannot be determined at this time. Information
regarding the selling shareholders, including the number of shares offered for
sale, may change from time to time and any changed information will be set
forth in a prospectus supplement, if required.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="24%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Shares Beneficially<BR>Owned Before Offering (1)</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares<BR>That<BR>May Be</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Shares Beneficially Owned<BR>After the Offering</B><HR size="1" noshade color="#000000"></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Sold</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Name of Beneficial Owner</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Position</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percent</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Hereby</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percent</B><HR size="1" noshade color="#000000"></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="top" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Thomas P. Richards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Chief Executive Officer, President, Chairman of the Board, and Director</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1,617,700</TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,447,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="padding-top: 0em">
    <TD><DIV style="margin-left:10px; text-indent:-10px">William R. Ziegler</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director and Vice Chairman of the Board</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2,254,616</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,254,616</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt">12
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="24%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Shares Beneficially<BR>Owned Before Offering (1)</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares<BR>That<BR>May Be</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Shares Beneficially Owned<BR>After the Offering</B><HR size="1" noshade color="#000000"></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Sold</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Name of Beneficial Owner</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Position</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percent</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Hereby</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percent</B><HR size="1" noshade color="#000000"></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="top" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Frank M. Brown</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">111,333</TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="padding-top: 0em">
    <TD><DIV style="margin-left:10px; text-indent:-10px">William T. Donovan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">791,271</TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">791,271</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="padding-top: 0em; background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">James K.B. Nelson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3,560,333</TD>
    <TD nowrap>(6)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,560,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="padding-top: 0em">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Robert E. Rose</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">128,333</TD>
    <TD nowrap>(7)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">128,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="padding-top: 0em; background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Steven A. Webster</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2,430,616</TD>
    <TD nowrap>(8)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,430,616</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="padding-top: 0em">
    <TD><DIV style="margin-left:10px; text-indent:-10px">David W. Wehlmann</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Executive Vice President, Chief Financial Officer and Secretary</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">411,960</TD>
    <TD nowrap>(9)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">818,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="padding-top: 0em; background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Edward S. Jacob III</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Senior Vice President-Operations</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">64,445</TD>
    <TD nowrap>(10)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">344,110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="padding-top: 0em">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Gary D. Lee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Senior Vice President-Human Resources</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">43,666</TD>
    <TD nowrap>(11)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229,130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="padding-top: 0em; background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Kent D. Cauley</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Vice President and Controller</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">17,720</TD>
    <TD nowrap>(12)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="padding-top: 0em">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Merrie S. Costley</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Former Officer</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">82,380</TD>
    <TD nowrap>(13)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="padding-top: 0em; background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Donald J. Guedry, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Vice President and Treasurer</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">181,186</TD>
    <TD nowrap>(14)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">241,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,166</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top" style="padding-top: 0em">
    <TD><DIV style="margin-left:10px; text-indent:-10px">All other persons who
acquired shares or
options to acquire
shares of our common
stock pursuant to one
of our employee benefit
plans (15)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,396,005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>





<P>

<HR size="1" width="18%" align="left" noshade>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">*</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Indicates less than 1%</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Unless noted otherwise, all shares of common stock are beneficially owned
by the selling shareholders. Beneficial ownership is calculated in
accordance with SEC Rule&nbsp;13d-3. Under that rule, shares underlying stock
options are deemed to be beneficially owned only if the stock options are
exercisable within 60&nbsp;days. Therefore, the number of shares reflected in
the &#147;Shares Beneficially Owned&#148; column excludes shares underlying options
that are only exercisable after 60&nbsp;days, while the &#147;Shares That May Be
Sold Hereby&#148; column may include shares underlying options that are
exercisable either before or after 60&nbsp;days. Accordingly, the number of
&#147;Shares That May Be Sold Hereby&#148; shown for a shareholder may be greater
than the number of shares shown for the same shareholder as &#147;Shares
Beneficially Owned.&#148;</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 2,447,700 shares of common stock which Mr.&nbsp;Richards may acquire
upon exercise of options, of which 1,317,700 are exercisable within 60
days of November&nbsp;16, 2004, and 300,000 shares of common stock owned by
Richards Brothers Interests, L.P. Mr.&nbsp;Richards is the president of the
general partner of Richards Brothers Interests but disclaims beneficial
ownership of shares owned by Richards Brothers Interests, a limited
partnership whose limited partners are the sons of Mr.&nbsp;Richards.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 2,071,283 shares of common stock owned by Mr.&nbsp;Ziegler, 250,000
shares of common stock (50,000 shares under our 2003 Incentive Plan) which
Mr.&nbsp;Ziegler may acquire upon exercise of options, of which 183,333 are
exercisable within 60&nbsp;days of November&nbsp;16, 2004.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">13
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 3,000 shares of common stock owned by Mr.&nbsp;Brown and 175,000
shares of common stock (50,000 shares under our 2003 Incentive Plan) which
Mr.&nbsp;Brown may acquire upon exercise of options, of which 108,333 are
exercisable within 60&nbsp;days of November&nbsp;16, 2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 317,278 shares of common stock held by Mr.&nbsp;Donovan, 268,660
shares of common stock owned by Cambridge Associates, L.P., 22,000 shares
of common stock beneficially owned by family members living in the same
household and 250,000 shares of common stock (50,000 shares under our 2003
Incentive Plan) which Mr.&nbsp;Donovan may acquire upon exercise of options, of
which 183,333 are exercisable within 60&nbsp;days of November&nbsp;16, 2004. Mr.
Donovan has voting and investment control over shares owned by Cambridge
Associates, L.P. but disclaims beneficial ownership of 214,056 shares of
common stock owned by Cambridge Associates, L.P. and 22,000 shares owned
by family members.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(6)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 601,500 shares of common stock owned by Mr.&nbsp;Nelson, 125,500
shares of common stock (50,000 shares under our 2003 Incentive Plan) which
Mr.&nbsp;Nelson may acquire upon exercise of options, of which 58,833 are
exercisable within 60&nbsp;days of November&nbsp;16, 2004, and 2,900,000 shares of
common stock owned by Felicity Ventures Ltd. Mr.&nbsp;Nelson indirectly
controls Felicity Ventures Ltd.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(7)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 20,000 shares of common stock owned by Mr.&nbsp;Rose and 175,000
shares of common stock (50,000 shares under our 2003 Incentive Plan) which
Mr.&nbsp;Rose may acquire upon exercise of options, of which 108,333 are
exercisable within 60&nbsp;days of November&nbsp;16, 2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(8)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 2,247,283 shares of common stock owned by Mr.&nbsp;Webster, 250,000
shares of common stock (50,000 shares under our 2003 Incentive Plan) which
Mr.&nbsp;Webster may acquire upon exercise of options, of which 183,333 are
exercisable within 60&nbsp;days of November&nbsp;16, 2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(9)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 818,820 shares of common stock which Mr.&nbsp;Wehlmann may acquire
upon exercise of options, of which 411,960 are exercisable within 60&nbsp;days
of November&nbsp;16, 2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(10)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 344,110 shares of common stock which Mr.&nbsp;Jacob may acquire upon
exercise of options, of which 64,320 are exercisable within 60&nbsp;days of
November&nbsp;16, 2004 and 125 shares of common stock held in the 401(k) Plan.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(11)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 229,130 shares of common stock which Mr.&nbsp;Lee may acquire upon
exercise of options, of which 42,000 are exercisable within 60&nbsp;days of
November&nbsp;16, 2004 and 1,666 shares of common stock held in the 401(k)
Plan.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(12)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 42,820 shares of common stock which Mr.&nbsp;Cauley may acquire upon
exercise of options, of which 17,720 are exercisable within 60&nbsp;days of
November&nbsp;16, 2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(13)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 154,070 shares of common stock which Ms.&nbsp;Costley may acquire
upon exercise of options, of which 82,380 are exercisable within 60&nbsp;days
of November&nbsp;16, 2004.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(14)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Includes 1,000 shares of common stock owned by Mr.&nbsp;Guedry, 241,810 shares
of common stock which Mr.&nbsp;Guedry may acquire upon exercise of options, of
which 178,020 are exercisable within 60&nbsp;days of November&nbsp;16, 2004, and
2,166 shares of common stock held in the 401(k) Plan.</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD width="1%" nowrap align="right">(15)</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Information concerning other selling shareholders will be set forth in
amendments to this registration statement or prospectus supplements from
time to time, if and when necessary.</TD>
</TR>

</TABLE>


<DIV align="left">
<A name="106"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>PLAN OF DISTRIBUTION</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling shareholders may sell shares of our common stock from time to
time in transactions:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on the exchanges or quotation systems on which our common
stock may then be listed or quoted;</TD>
</TR>


</TABLE>

<P align="center" style="font-size: 10pt">14
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the over-the-counter market;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in transactions otherwise than on such exchanges or services
or in the over-the-counter market; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any combination of the foregoing.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales of shares of common stock may be made at fixed prices which may be
changed, at market prices prevailing at the time of sale, at prices related to
such prevailing market prices or at negotiated prices. As used in this
prospectus, &#147;selling shareholders&#148; includes pledgees, donees, transferees and
other successors in interest to the selling shareholders that receive shares as
a gift or other non-sale related transfer. The selling shareholders may sell
shares of our common stock to or through broker-dealers, and such
broker-dealers may receive compensation in the form of discounts, concessions
or commissions from the selling shareholders or the purchasers of the shares
for whom such broker-dealers may act as agent or to whom they sell as
principal, or both. The compensation received by any broker-dealer may be in
excess of customary commissions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other methods by which the shares of our common stock may be sold include, without limitation:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ordinary brokerage transactions and transactions in which the broker solicits purchasers;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;at the market&#148; to or through market makers or into an existing market for our common stock;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in other ways not involving market makers or
established trading markets, including direct sales to purchasers
or sales effected through agents;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in privately negotiated transactions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>block trades in which the broker or dealer will attempt
to sell shares as agent but may position and resell a portion of
the block as principal to facilitate the transaction;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>through transactions in options or swaps or other
derivatives, whether exchange-listed or otherwise;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>through short sales;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any combination of any such methods of sale; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other method pursuant to applicable law.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling shareholders may also enter into option or other transactions
with broker-dealers which require the delivery to those broker-dealers of the
common stock offered by this prospectus, which common stock such broker-dealers
may resell under this prospectus.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, each of the selling shareholders may adopt a trading plan
under Rule&nbsp;10b5-1 of the Securities Exchange Act of 1934 to sell shares covered
by this prospectus. Sales not covered by this prospectus may also be made by
the selling shareholders pursuant to Rule&nbsp;144 or another applicable exemption
under the Securities Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent required, this prospectus also may be amended or
supplemented from time to time to describe a specific plan of distribution or
any material arrangement that a selling shareholder has entered into for the
sale of shares, including the details of any underwritten distribution.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In offering the shares covered by this prospectus, the selling
shareholders and any broker-dealers, underwriters or agents who execute sales
for the selling shareholders may be deemed to be &#147;underwriters&#148; within the
meaning of the Securities Act in connection with such sales. Any profits
realized by the selling shareholders and the compensation of any broker-dealer,
underwriter or agent may be deemed to be underwriting discounts and


<P align="center" style="font-size: 10pt">15
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">commissions. We know of no existing arrangements between any selling
shareholder and any other selling shareholder, underwriter, broker-dealer or
other agent relating to the sale or distribution of the shares. No
underwriter, broker-dealer or agent has been engaged by us in connection with
the distribution of the shares.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To comply with the securities laws of certain states, if applicable, the
shares must be sold in such jurisdictions only through registered or licensed
brokers or dealers. In addition, in certain states the shares may not be sold
unless they have been registered or qualified for sale in the applicable state
or an exemption from the registration or qualification requirement is available
and is complied with.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling shareholders and any other person participating in a
distribution of the shares covered by this prospectus will be subject to the
applicable provisions of the Securities Exchange Act of 1934 (the &#147;Exchange
Act&#148;) and the rules and regulations thereunder. Regulation&nbsp;M of the Exchange
Act may limit the timing of purchases and sales of shares by the selling
shareholders and any other person. In addition, Regulation&nbsp;M may restrict the
ability of any person engaged in the distribution of the shares to engage in
market-making activities with respect to our common stock for a period of up to
five business days before the distribution.

<DIV align="left">
<A name="107"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>LEGAL MATTERS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The legality of the securities will be passed upon for us by Porter &#038;
Hedges, L.L.P., Houston, Texas. If the securities are being distributed in an
underwritten offering, certain legal matters will be passed for the
underwriters by counsel identified in the related prospectus supplement.

<DIV align="left">
<A name="108"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements and schedule of Grey Wolf, Inc. as
of December&nbsp;31, 2003 and 2002 and for each of the years in the three-year
period ended December&nbsp;31, 2003, have been incorporated by reference herein in
reliance upon the reports of KPMG LLP, an independent registered public
accounting firm, incorporated by reference herein.


<P align="center" style="font-size: 10pt">16
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P><DIV style="position: relative; float: left; margin-right: 1%; width: 45%">

<P align="center" style="font-size: 10pt">&nbsp;


<P align="center" style="font-size: 10pt">&nbsp;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<P align="center" style="font-size: 10pt"><HR size="1" noshade width="20%" align="center" color="#000000">

<P align="justify" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We have not authorized any dealer, salesperson or
any other person to give any information or to
represent anything not contained in this
prospectus. You must not rely on any unauthorized
information. This prospectus does not offer to
sell or buy any shares in any jurisdiction where
it is unlawful. The information in this
prospectus is current as of the date below.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<HR size="1" noshade width="20%" align="center" color="#000000">



</DIV>

<DIV style="position: relative; float: right; margin-left: 1%; width: 45%">

<P align="center" style="font-size: 18pt"><B>Grey Wolf, Inc.</B>



<P align="center" style="font-size: 18pt"><IMG src="h18767greywolf.gif" alt="(GREY WOLF LOGO)">



<P align="center" style="font-size: 14pt"><B>11,687,305</B>



<P align="center" style="font-size: 14pt"><B>Shares</B>



<P align="center" style="font-size: 14pt"><B>of</B>



<P align="center" style="font-size: 14pt"><B>Common Stock</B>



<P align="center" style="font-size: 14pt">&nbsp;



<P align="center" style="font-size: 14pt"><HR size="1" noshade width="20%" align="center" color="#000000">



<P align="center" style="font-size: 14pt"><B>PROSPECTUS</B>



<P align="center" style="font-size: 14pt"><HR size="1" noshade width="20%" align="center" color="#000000">



<P align="center" style="font-size: 14pt">&nbsp;



<P align="center" style="font-size: 14pt"><B>November&nbsp;19, 2004</B>


</DIV>
<BR clear="all"><BR>



<P align="center" style="font-size: 10pt">17
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt"><B>PART II</B>



<P align="center" style="font-size: 10pt"><B>INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</B>



<P align="left" style="font-size: 10pt"><B>ITEM 3. INCORPORATION OF DOCUMENTS BY REFERENCE</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following documents filed by Grey Wolf, Inc., a Texas corporation,
with the Securities and Exchange Commission (&#147;Commission&#148;) are incorporated
into this registration statement by reference:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our annual report on Form 10-K/A (Amendment No.&nbsp;2) for the year
ended December&nbsp;31, 2003, filed on August&nbsp;11, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our quarterly report on Form 10-Q for the quarter ended September&nbsp;30, 2004, filed on November&nbsp;9, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our quarterly report on Form 10-Q for the quarter ended June&nbsp;30, 2004, filed August&nbsp;9, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our quarterly report on Form 10-Q/A (Amendment No.&nbsp;2) for the
quarter ended March&nbsp;31, 2004, filed on August&nbsp;11, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our definitive proxy statement for our 2004 annual meeting of shareholders filed on March&nbsp;26, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our current report on Form 8-K, filed on November&nbsp;3, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our current report on Form 8-K, filed on April&nbsp;22, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our current report on Form 8-K, filed on April&nbsp;7, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our current report on Form 8-K, filed on April&nbsp;1, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our current report on Form 8-K, filed on March&nbsp;29, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our current report on Form 8-K, filed on March&nbsp;9, 2004;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the description of our common stock contained in our current report on Form 8-K, dated October&nbsp;6, 1997; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the description of our preferred stock purchase rights
contained in our registration statement on Form 8-A/A, filed with the
Commission on October&nbsp;9, 1998.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All documents filed by us with the Commission pursuant to Sections&nbsp;13(a),
13(c), 14 and 15(d) of the Securities Exchange Act of 1934, as amended (the
&#147;Exchange Act&#148;) (excluding any information in those documents that are deemed
by the rules of the Commission to be furnished not filed), subsequent to the
filing date of this registration statement and prior to the filing of a
post-effective amendment to this registration statement which indicates that
all securities offered have been sold or which deregisters all securities then
remaining unsold shall be deemed to be incorporated by reference in this
registration statement and to be a part hereof from the date of filing such
documents. We will provide without charge to each participant in the 2003
Incentive Plan, the Form of Incentive Stock Option Agreement and the Form of
Non-Qualified Stock Option Agreement, upon written or oral request of such
person, a copy (without exhibits, unless such exhibits are specifically
incorporated by reference) of any or all of the documents incorporated by
reference pursuant to this Item&nbsp;3.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>ITEM 4. DESCRIPTION OF SECURITIES</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.


<P align="left" style="font-size: 10pt"><B>ITEM 5. INTERESTS OF NAMED EXPERTS AND COUNSEL</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.


<P align="left" style="font-size: 10pt"><B>ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Article&nbsp;1302-7.06 of the Texas Miscellaneous Corporation Laws Act,
the articles of incorporation of a Texas corporation may provide that a
director of that corporation shall not be liable, or shall be liable only to
the extent provided in the articles of incorporation, to the corporation or its
shareholders for monetary damages for acts or omissions in the director&#146;s
capacity as a director, except that the articles of incorporation cannot
provide for the elimination or limitation of liability of a director to the
extent that the director is found liable for:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>breach of the director&#146;s duty of loyalty to the corporation or
its shareholders;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acts or omissions not in good faith that constitute a breach of
duty of the director to the corporation or an act or omission that
involves intentional misconduct or a knowing violation of the law;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any transaction from which the director received an improper
benefit, whether or not the benefit resulted from an action taken
within the scope of the director&#146;s office; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an act or omission for which the liability of a director is
expressly provided by an applicable statute.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Article&nbsp;10 of our amended and restated Articles of Incorporation states
that no director shall be liable to us or our shareholders for monetary damages
for an act or omission in the director&#146;s capacity as a director, provided,
however, that such Article shall not eliminate or limit the liability of a
director to the extent the director is found liable for the actions, omissions
or conduct listed above.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, Article&nbsp;2.02-1 of the Texas Business Corporation Act (the
&#147;TBCA&#148;) authorizes a Texas corporation to indemnify a person who was, is, or is
threatened to be made a named defendant or respondent in a proceeding,
including any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative, arbitrative, or investigative, because
the person is or was a director.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The TBCA provides that unless a court of competent jurisdiction determines
otherwise, indemnification is permitted only if it is determined that the
person:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>conducted himself in good faith;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reasonably believed (a)&nbsp;in the case of conduct in his official
capacity as a director of the corporation, that his conduct was in
the corporation&#146;s best interests; and (b)&nbsp;in all other cases, that
his conduct was at least not opposed to the corporation&#146;s best
interests; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of any criminal proceeding, had no reasonable cause
to believe his conduct was unlawful.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A person may be indemnified under Article&nbsp;2.02-1 of the TBCA against


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>judgments;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>penalties (including excise and similar taxes);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fines;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>settlements; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reasonable expenses actually incurred by the person (including court costs and attorneys&#146; fees).</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, if the person is found liable to the corporation or is found
liable on the basis that personal benefit was improperly received by him, the
indemnification is limited to reasonable expenses actually incurred and shall
not be made in respect of any proceeding in which the person has been found
liable for willful or intentional misconduct in the performance of his duty to
the corporation. A corporation is obligated under Article&nbsp;2.02-1 of the TBCA
to indemnify a director or officer against reasonable expenses incurred by him
in connection with a proceeding in which he is named defendant or respondent
because he is or was a director or officer if he has been wholly successful, on
the merits or otherwise, in the defense of the proceeding.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Article&nbsp;2.02-1 of the TBCA a corporation may:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>indemnify and advance expenses to officers, employees, agents
or other persons who are or were serving at the request of the
corporation as a director, officer, partner, venturer, proprietor,
trustee, employee, agent or similar functionary of another entity to
the same extent that it may indemnify and advance expenses to its
directors;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>indemnify and advance expenses to directors and such other
persons set forth above to such further extent, consistent with law,
as may be provided in the corporation&#146;s articles of incorporation,
bylaws, action of its board of directors, or contract or as permitted
by common law;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>purchase and maintain insurance or another arrangement on
behalf of directors and such other persons set forth above against
any liability asserted against him and incurred by him in such a
capacity or arising out of his status as such a person.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Bylaws substantively provide that directors and officers of the
company will be indemnified to the fullest extent permitted by the TBCA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The company maintains directors&#146; and officers&#146; insurance. The company has
entered into agreements to indemnify its executive officers regarding
liabilities that may result from such officer&#146;s service as an officer or
director of the company.


<P align="left" style="font-size: 10pt"><B>ITEM 7. EXEMPTION FROM REGISTRATION CLAIMED</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted securities being registered for resale hereunder were issued in
reliance on the exemption from registration contained in Section&nbsp;4(2) of the
Securities Act of 1933 to sophisticated, well-informed persons who were or
became our executive officers or directors.


<P align="left" style="font-size: 10pt"><B>ITEM 8. EXHIBITS</B>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="2" border="0" cellpadding="2" width="96%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit<BR>Number</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Description</B><HR size="1" noshade color="#000000"></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2003 Incentive Plan (incorporated herein by reference to Appendix&nbsp;A of
the Grey Wolf, Inc. 2003 Annual Meeting of Shareholders definitive
proxy materials, filed March&nbsp;28, 2003).</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="2" border="0" cellpadding="2" width="96%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit<BR>Number</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Description</B><HR size="1" noshade color="#000000"></TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Non-Qualified Stock Option Agreement for Employees</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Non-Qualified Stock Option Agreement for Non-Employee Directors</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*&nbsp;4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Qualified Stock Option Agreement for Thomas P. Richards</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;4.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rights Agreement dated as of September&nbsp;21, 1998 by and between the
Company and American Stock Transfer and Trust Company as Rights Agent
(incorporated herein by reference to Exhibit&nbsp;4.1 to Form&nbsp;8-K filed
September&nbsp;22, 1998).</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;*5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Porter &#038; Hedges, L.L.P.</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Independent Registered
Public Accounting Firm, KPMG LLP.</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Porter &#038; Hedges, L.L.P. (contained in Exhibit&nbsp;5.1).</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">24.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Powers of Attorney (included on signature pages).</TD>
</TR>


<!-- End Table Body -->
</TABLE>

</DIV>




<P>

<HR size="1" width="18%" align="left" noshade>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">*</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Filed herewith.</TD>
</TR>

</TABLE>



<P align="left" style="font-size: 10pt"><B>ITEM 9. UNDERTAKINGS</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned registrant hereby undertakes:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement to:



<P align="left" style="margin-left:5%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Include any prospectus required by Section&nbsp;10(a)(3) of the
Securities Act of 1933, as amended (the &#147;Securities Act&#148;);



<P align="left" style="margin-left:5%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Reflect in the prospectus any facts or events arising after
the effective date of this registration statement (or the most recent
post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set
forth in this registration statement. Notwithstanding the foregoing,
any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which
was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of
prospectus filed with the Commission pursuant to Rule 424(b) if, in
the aggregate, the changes in volume and price represent no more than
a 20% change in the maximum aggregate offering price set forth in the
&#147;Calculation of Registration Fee&#148; table in the effective registration
statement.



<P align="left" style="margin-left:5%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Include any material information with respect to the plan
of distribution not previously disclosed in this registration
statement or any material change to such information in this
registration statement.



<P align="left" style="margin-left:3%; font-size: 10pt"><I>Provided, however</I>, that paragraphs (1)(i) and (1)(ii) above do not apply
if the information required to be included in a post-effective amendment
by those clauses is contained in periodic reports filed by the registrant
pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
that are incorporated by reference into this registration statement;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining any liability under the
Securities Act, each such post-effective amendment shall be deemed to be a
new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at
the termination of the offering.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act, each filing of the
registrant&#146;s annual report pursuant to Section 13(a) or Section 15(d) of the
Exchange Act (and, where applicable, each filing of an employee benefit plan&#146;s
annual report pursuant to Section 15(d) of the Exchange Act) that is
incorporated by reference in the registration statement shall be deemed to be a
new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Commission such indemnification is
against public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by the registrant of expenses incurred or
paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act and will be governed
by the final adjudication of such issue.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Houston, State of Texas, on this 19th day of
November, 2004.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>

<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>GREY WOLF, INC.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">/s/ David W. Wehlmann<HR size="1" noshade color="#000000">David W. Wehlmann<BR>
<I>Executive Vice President,<BR>
Chief Financial Officer and Secretary</I></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><B>POWER OF ATTORNEY</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Know all men by these presents, that each person whose signature appears
below, constitutes and appoints Thomas P. Richards, David W. Wehlmann and Kent
D. Cauley and each of them, our true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, to do any and all acts and
things and execute, in the name of the undersigned, any and all instruments
which said attorneys-in-fact and agents may deem necessary or advisable in
order to enable Grey Wolf, Inc. to comply with the Securities Act of 1933, as
amended (the &#147;Securities Act&#148;) and any requirements of the Securities and
Exchange Commission in respect thereof, in connection with the filing with the
Securities and Exchange Commission of the Registration Statement on Form S-8
under the Securities Act, including specifically but without limitation, power
and authority to sign the name of the undersigned to such Registration
Statement, and any amendments to such Registration Statement (including
post-effective amendments and additional registration statements filed pursuant
to Rule&nbsp;462 of the Securities Act), and to file the same with all exhibits
thereto and other documents in connection therewith, with the Securities and
Exchange Commission, to sign any and all applications, Registration Statements,
notices or other documents necessary or advisable to comply with applicable
state securities laws, and to file the same, together with other documents in
connection therewith with the appropriate state securities authorities,
granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to do and to perform each and every act and thing requisite or
necessary to be done in and about the premises, as fully and to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, and any of them, or
their substitutes, may lawfully do or cause to be done by virtue hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons at Grey Wolf,
Inc. in the capacities and on the dates indicated.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Signature</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Title</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Date</B><HR size="1" noshade color="#000000"></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center" nowrap valign="top">/s/ Thomas P. Richards<BR>
<HR size="1" noshade color="#000000">
Thomas P. Richards</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
President, Chief Executive
Officer and Chairman of the
Board
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">November 19, 2004</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ David W. Wehlmann<BR>
<HR size="1" noshade color="#000000">
David W. Wehlmann</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Executive Vice President, Chief
Financial Officer and Secretary
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">November 19, 2004</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Signature</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Title</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Date</B><HR size="1" noshade color="#000000"></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Kent D. Cauley<BR>
<HR size="1" noshade color="#000000">
Kent D. Cauley</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Vice President and Controller
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">November 19, 2004</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Frank M. Brown<BR>
<HR size="1" noshade color="#000000">
Frank M. Brown</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">November 19, 2004</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ William T. Donovan<BR>
<HR size="1" noshade color="#000000">
William T. Donovan</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">November 19, 2004</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ James K. B. Nelson<BR>
<HR size="1" noshade color="#000000">
James K. B. Nelson</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">November 19, 2004</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Robert E. Rose<BR>
<HR size="1" noshade color="#000000">
Robert E. Rose</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">November 19, 2004</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ Steven A. Webster<BR>
<HR size="1" noshade color="#000000">
Steven A. Webster</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">November 19, 2004</TD>
</TR>

<TR valign="bottom" style="padding-top: 1em">
    <TD align="center" nowrap valign="top">/s/ William R. Ziegler<BR>
<HR size="1" noshade color="#000000">
William R. Ziegler</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
Vice Chairman of the Board
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">November 19, 2004</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><B>INDEX TO EXHIBITS</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="2" border="0" cellpadding="2" width="96%">

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit<BR>Number</B><HR size="1" noshade color="#000000"></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Description</B><HR size="1" noshade color="#000000"></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2003 Incentive Plan (incorporated herein by reference to Appendix&nbsp;A of
the Grey Wolf, Inc. 2003 Annual Meeting of Shareholders definitive
proxy materials, filed March&nbsp;28, 2003).</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Non-Qualified Stock Option Agreement for Employees</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Non-Qualified Stock Option Agreement for Non-Employee Directors</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*&nbsp;4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Qualified Stock Option Agreement for Thomas P. Richards</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;4.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rights Agreement dated as of September&nbsp;21, 1998 by and between the
Company and American Stock Transfer and Trust Company as Rights Agent
(incorporated herein by reference to Exhibit&nbsp;4.1 to Form&nbsp;8-K filed
September&nbsp;22, 1998).</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;*5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Porter &#038; Hedges, L.L.P.</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">*23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Independent Registered
Public Accounting Firm, KPMG LLP.</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Porter &#038; Hedges, L.L.P. (contained in Exhibit&nbsp;5.1).</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">24.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#151;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Powers of Attorney (included on signature pages).</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>




<P>

<HR size="1" width="18%" align="left" noshade>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">*</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">Filed herewith.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
</HTML>
[{"type": "S-8", "sequence": "1", "filename": "h18767sv8.htm", "description": "GREY WOLF, INC.", "secsgml_size_bytes": 170598}]
{"company-data": {"conformed-name": "GREY WOLF INC", "cik": "0000320186", "assigned-sic": "1381", "irs-number": "742144774", "state-of-incorporation": "TX", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-120655", "film-number": "041159518"}, "business-address": {"street1": "10370 RICHMOND AVE", "street2": "SUITE 600", "city": "HOUSTON", "state": "TX", "zip": "77042-4136", "phone": "7138740202"}, "mail-address": {"street1": "10370 RICHMOND AVENUE", "street2": "SUITE 100", "city": "HOUSTON", "state": "TX", "zip": "77042-4136"}, "former-company": [{"former-conformed-name": "DI INDUSTRIES INC", "date-changed": "19920703"}, {"former-conformed-name": "DRILLERS INC", "date-changed": "19870519"}]}
sv8
Table of Contents
As filed with the Securities and Exchange Commission on November 19, 2004
Registration Number 333-________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Grey Wolf, Inc.
(Exact Name of Registrant as Specified in its Charter)
Texas
(State or Other Jurisdiction of
Incorporation or Organization)
10370 Richmond Avenue, Suite 600
Houston, Texas 77042-4136
(713) 435-6100
(Address of Principal Executive Offices)
74-2144774
(I.R.S. Employer
Identification Number)
GREY WOLF, INC.
2003 INCENTIVE PLAN
(Full title of the Plan)
David W. Wehlmann
Executive Vice President and Chief Financial Officer
10370 Richmond Avenue, Suite 600
Houston, Texas 77042-4136
Telephone: (713) 435-6100
Fax: (713) 435-6171
(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent for Service)
Copies to:
Nick D. Nicholas
Porter & Hedges, L.L.P.
700 Louisiana, 35th Floor
Houston, Texas 77002-2764
(713) 226-0600
Fax (713) 226-0237
CALCULATION OF REGISTRATION FEE
Proposed Maximum
Proposed Maximum
Title of Each Class of
Amount to
Offering
Aggregate Offering
Amount of
Securities to be Registered
be Registered
Price Per Share
Price
Registration Fee
Common stock, par value
$0.10 per share
7,108,845
(1)(2)(3)
$
5.15
(4)
$
36,610,552
(2)(4)
$
4,639
(2)(4)(5)
(1)
Pursuant to Rule 416(a) under the Securities Act of 1933, as amended (the
"Securities Act"), also registered hereunder is an indeterminate number of
 shares which become issuable by reason of any stock splits, stock
dividends, recapitalization or any other similar transaction affected
without the receipt of consideration which results in an increase in the
number of the registrant's outstanding shares of common stock.
(2)
Does not include 9,891,155 shares covered by previous registration
statements and included in the combined prospectus filed herewith pursuant
to Rule 429. The applicable registration fees for these shares were paid
in full at the time of the filing of each previous registration statement
covering shares of common stock.
(3)
Also being registered are the rights to purchase shares of Series B
Junior Participating Preferred Stock, which are attached to the shares of
common stock registered hereby. These rights, if issued, will be issued
for no additional consideration. Pursuant to Rule 457(g) under the
Securities Act, no additional registration fee is required in connection
with the registration of the rights.
(4)
Estimated pursuant to Rule 457(c) under the Securities Act solely for the
purpose of computing the registration fee, based upon the average high and
low price of the common stock as reported on the American Stock Exchange
on November 18, 2004.
(5)
Pursuant to Rule 457(p) under the Securities Act, $4,639 of
the fee that was previously paid in respect of the
7,108,845 shares of common stock being carried forward from the
registrant's registration statement on Form S-8 (Reg. No.
333-90888) will be used to offset the registration fees for this
registration statement. Accordingly, no additional payment will be
made in connection with this registration statement.
Pursuant
to the provisions of Rule 429 under the Securities Act of 1933,
as amended, the prospectus contained in this Registration Statement
also relates to 9,891,155 shares of common stock covered by the
following Registration Statements on Form S-8: 333-19027,
333-41334 and 333-90888. The registration fees with respect to the
9,891,155 shares of common stock were previously paid.
Table of Contents
PART I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
The following documents listed under this Part I and the documents
incorporated by reference under Item 3 of Part II to this Form S-8, taken
together, constitute a prospectus that meets the requirements of Section 10(a)
of the Securities Act of 1933, and are incorporated herein by reference.
Item 1. Plan Information
The information required to be provided to participants pursuant to this
Item is set forth in the Information Memorandum for the Grey Wolf, Inc. 2003
Incentive Plan.
Item 2. Registration Information and Employee Plan Annual Information
The written statement required to be provided to participants pursuant to
this Item is set forth in the Information Memorandums referenced in Item 1
above.
Table of Contents
PROSPECTUS
11,687,305 Shares
GREY WOLF, INC.
COMMON STOCK
The selling shareholders identified in this prospectus are offering up to
11,687,305 shares of our common stock which are currently issued and
outstanding or are issuable by us upon exercise of options held by the selling
shareholders. We are not offering any shares of our common stock for sale
under this prospectus and we will not receive any of the proceeds from the sale
of shares by selling shareholders under this prospectus. We will file a
supplemental prospectus if required to do so by applicable securities laws to
describe specific sales of shares or to identify any selling shareholders not
listed in this prospectus.
The selling shareholders may sell shares of our common stock from time to
time in transactions:
•
on the exchanges or quotation systems on which our common
stock may then be listed or quoted;
•
in the over-the-counter market;
•
in transactions otherwise than on such exchanges or services
or in the over-the-counter market; or
•
any combination of the foregoing.
Sales of shares of common stock may be made at fixed prices which may be
changed, at market prices prevailing at the time of sale, at prices related to
such prevailing market prices or at negotiated prices.
Our common stock is traded on the American Stock Exchange under the symbol
"GW." On November 18, 2004, the last reported sale price of our common stock
was $5.17 per share.
Investing in our common stock involves risks. Consider carefully the risk
factors beginning on page 3 of this prospectus.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if
this prospectus is truthful or complete. Any representation to the contrary is
a criminal offense.
This prospectus is dated November 19, 2004.
TABLE OF CONTENTS
Page
Summary
2
Risk Factors
3
Where You Can Find More Information
10
Forward-Looking Statements
11
Selling Shareholders
12
Plan of Distribution
14
Legal Matters
16
Independent Registered Public Accounting Firm
16
Form of Non-Qualified Stock Option Agmt for Employees
Form of Non-Qualified Stock Option Agmt for Non-Employee Directors
Non-Qualified Stock Option Agmt for Thomas P. Richards
Opinion of Porter & Hedges, L.L.P.
Consent of KPMG LLP
You should rely only on the information contained or incorporated by
reference in this prospectus or in a prospectus supplement. We have not
authorized anyone to provide you with information that is different. If anyone
provides you with different or inconsistent information you should not rely on
it. We are not making an offer of these securities in any state where the
offer is not permitted. You should not assume that the information contained
in this prospectus, any accompanying prospectus, any accompanying prospectus
supplement or any document incorporated by reference in this prospectus is
accurate as of any date other than the date of the document containing the
information.
1
Table of Contents
SUMMARY
This prospectus describes our common stock and the general manner in which
the selling stockholders may offer our common stock. We urge you to read this
summary together with the information contained in other parts of this
prospectus and the documents we incorporate by reference before making a
decision about whether to invest in the common stock of Grey Wolf, Inc.
Our Company
We are a leading provider of contract land drilling services in the United
States with a domestic fleet of 127 rigs, of which 99 rigs are currently
marketed. We currently have 13 cold stacked rigs, which can be redeployed as
demand dictates, bringing our total marketed fleet to 112. In addition, we
have 15 rigs that can be refurbished out of inventory as demand dictates. We
conduct substantially all of our operations through our subsidiaries. Our
customers are independent producers and major oil and gas companies.
We conduct our operations primarily in markets that we believe have
historically had greater utilization rates and dayrates than the average rates
of all other domestic markets. Our customers use our services principally in
drilling for natural gas. Natural gas reserves are typically found in deeper
geological formations and generally require premium equipment and quality
crews, such as we offer, to drill the wells. During 2003, approximately 98% of
the wells that we drilled for our customers were drilled in search of natural
gas.
Our principal office is located at 10370 Richmond Avenue, Suite 600,
Houston, Texas 77042-4136, and our telephone number is (713) 435-6100. We
maintain a website at http://www.gwdrilling.com, where general information
about us is available. We are not incorporating the contents of our website
into this prospectus.
The Offering
Issuer
Grey Wolf, Inc.
Common stock offered by the
selling shareholders
Up to 11,687,305 shares
Use of proceeds
All of the proceeds from the sale of common stock covered by this
prospectus will be received by the selling shareholders. We will
not receive any proceeds from the sale of the common stock
covered by this prospectus.
American Stock Exchange
symbol
GW
2
Table of Contents
RISK FACTORS
In considering whether to purchase our common stock, we urge you to
carefully consider all the information we have included and incorporated by
reference in this prospectus and any prospectus supplement. In particular, we
urge you to carefully consider the risk factors described below and other
information contained or incorporated by reference in this prospectus. In
addition, we urge you to read "Forward-Looking Statements," where we describe
additional uncertainties associated with our business and forward-looking
statements in this prospectus.
RISKS RELATED TO OUR BUSINESS
A material or extended decline in expenditures by the oil and gas industry, due
to a decline or volatility in oil and gas prices, a decrease in demand for oil
and gas or other factors, would reduce our revenue and income.
As a supplier of land drilling services, our business depends on the level
of drilling activity by oil and gas exploration and production companies
operating in the geographic markets where we operate. The number of wells they
choose to drill is strongly influenced by past trends in oil and natural gas
prices, current prices and their outlook for future prices. Low oil and natural
gas prices, or the perception among oil and gas companies that prices are
likely to decline, can materially and adversely affect us in many ways,
including:
•
our revenues, cash flows and earnings;
•
the fair market value of our rig fleet, which in turn could
trigger a writedown of the carrying value of these assets for
accounting purposes;
•
our ability to maintain or increase our borrowing capacity;
•
our ability to obtain additional capital to finance our
business and make acquisitions, and the cost of that capital; and
•
our ability to retain skilled rig personnel who we would need
in the event of an increase in the demand for our services.
Depending on the market prices of oil and natural gas, oil and gas
exploration and production companies may cancel or curtail their drilling
programs, thereby reducing demand for our services. Even during periods when
prices for oil and natural gas are high, companies exploring for oil and
natural gas may cancel or curtail their drilling programs for a variety of
other reasons beyond our control. Any reduction in the demand for drilling
services may materially erode dayrates, the prices we receive for our turnkey
drilling services and the utilization rates for our rigs, any of which could
adversely affect our financial results. Oil and natural gas prices have been
volatile historically and, we believe, will continue to be so in the future.
Many factors beyond our control affect oil and natural gas prices, including:
•
weather conditions in the United States and elsewhere;
•
economic conditions in the United States and elsewhere;
•
actions by OPEC, the Organization of Petroleum Exporting Countries;
•
political instability in the Middle East, Venezuela and other major producing regions;
•
governmental regulations, both domestic and foreign;
•
the pace adopted by foreign governments for exploration of their national reserves; and
3
Table of Contents
•
the overall supply and demand for oil and natural gas.
An economic downturn may adversely affect our business.
An economic downturn may cause reduced demand for petroleum-based products
and natural gas. In addition, many oil and natural gas production companies
often reduce or delay expenditures to reduce costs, which in turn may cause a
reduction in the demand for our services during these periods. If the economic
environment worsens, our business, financial condition and results of
operations may be further adversely impacted.
The intense price competition and cyclical nature of our industry could have an
adverse effect on our revenues and profitability.
The contract drilling business is highly competitive with numerous
industry participants. The drilling contracts we compete for are usually
awarded on the basis of competitive bids. We believe pricing and rig
availability are the primary factors considered by our potential customers in
determining which drilling contractor to select. We believe other factors are
also important. Among those factors are:
•
the type and condition of drilling rigs;
•
the quality of service and experience of rig crews;
•
the safety record of the company and the particular drilling rig;
•
the offering of ancillary services; and
•
the ability to provide drilling equipment adaptable to, and
personnel familiar with, new technologies and drilling techniques.
While we must generally be competitive in our pricing, our competitive
strategy emphasizes the quality of our equipment, the safety record of our rigs
and the experience of our rig crews to differentiate us from our competitors.
This strategy is less effective during an industry downturn as lower demand for
drilling services intensifies price competition and makes it more difficult for
us to compete on the basis of factors other than price.
The contract drilling industry historically has been cyclical and has
experienced periods of low demand, excess rig supply, and low dayrates,
followed by periods of high demand, short rig supply and increasing dayrates.
Periods of excess rig supply intensify the competition in our industry and
often result in rigs being idle. There are numerous competitors in each of the
markets in which we compete. In all of those markets, an oversupply of rigs
can cause greater price competition. Contract drilling companies compete
primarily on a regional basis, and the intensity of competition may vary
significantly from region to region at any particular time. If demand for
drilling services improves in a region where we operate, our competitors might
respond by moving in suitable rigs from other regions. An influx of rigs from
other regions could rapidly intensify competition and make any improvement in
demand for drilling rigs short-lived.
We face competition from competitors with greater resources.
Some of our competitors have greater financial and human resources than do
we. Their greater capabilities in these areas may enable them to:
•
better withstand industry downturns;
•
compete more effectively on the basis of price and technology;
•
retain skilled rig personnel; and
4
Table of Contents
•
build new rigs or acquire and refurbish existing rigs to be
able to place rigs into service more quickly than us in periods of
high drilling demand.
Our drilling operations involve operating risks which if not adequately insured
or indemnified against could adversely affect our results of operations and
financial condition.
Our operations are subject to the usual risks inherent in the land drilling business including the risks of:
•
blowouts;
•
reservoir damage;
•
cratering;
•
fires, pollution and explosions;
•
collapse of the borehole;
•
lost or stuck drill strings; and
•
damage or loss from natural disasters.
If these events occur, they can produce substantial liabilities to us which include:
•
suspension of drilling operations;
•
damage to the environment;
•
damage to, or destruction of, our property and equipment and that of others;
•
personal injury and loss of life; and
•
damage to producing or potentially productive oil and natural
gas formations through which we drill.
We attempt to obtain indemnification from our customers by contract for
certain of these risks under daywork contracts but are not always able to do
so. We also seek to protect ourselves from some but not all operating risks
through insurance coverage. The indemnification we receive from our customers
and our own insurance coverage may not, however, be sufficient to protect us
against liability for all consequences of disasters, personal injury and
property damage. Additionally, our insurance coverage generally provides that
we bear a portion of the claim through substantial insurance coverage
deductibles. Our insurance or indemnification arrangements may not adequately
protect us against liability from all of the risks of our business. If we were
to incur a significant liability for which we were not fully insured or
indemnified, it could adversely affect our financial position and results of
operations.
Our cost of insurance increased significantly in 2003 compared to prior
years, which we believe is consistent with the experience of most companies in
our industry. When we renew our current insurance policies, the premiums we pay
may again increase, which will increase our operating costs. Additionally, we
may be unable to obtain or renew insurance coverage of the type and amount we
desire at reasonable rates.
Business acquisitions entail numerous risks and may disrupt our business,
dilute shareholder value and distract management attention.
As part of our business strategy, we plan to consider acquisitions of, or
significant investments in, businesses and assets that are complementary to
ours. Any acquisition that we complete could have a material
5
Table of Contents
adverse affect on our operating results and/or the price of our
securities. Acquisitions, including our recent acquisition of New Patriot
Drilling Corporation, involve numerous risks, including:
•
unanticipated costs and liabilities;
•
difficulty of integrating the operations and assets of the acquired business;
•
our ability to properly access and maintain an effective
internal control environment over an acquired company, in order to
comply with the recently adopted and pending public reporting
requirements;
•
potential loss of key employees and customers of the acquired companies; and
•
an increase in our expenses and working capital requirements.
We may incur substantial indebtedness to finance future acquisitions and
also may issue equity securities or convertible securities in connection with
any such acquisitions. Debt service requirements could represent a significant
burden on our results of operations and financial condition and the issuance of
additional equity could be dilutive to our existing stockholders. Also,
continued growth could divert the attention of our management and other
employees from our day-to-day operations and the development of new business
opportunities.
Our operations are subject to environmental laws that may expose us to
liabilities for noncompliance, which may adversely affect us.
Many aspects of our operations are subject to domestic laws and
regulations. For example, our drilling operations are typically subject to
extensive and evolving laws and regulations governing:
•
environmental quality;
•
pollution control; and
•
remediation of environmental contamination.
Our operations are often conducted in or near ecologically sensitive
areas, such as wetlands, which are subject to special protective measures and
which may expose us to additional operating costs and liabilities for
noncompliance with applicable laws. The handling of waste materials, some of
which are classified as hazardous substances, is a necessary part of our
operations. Consequently, our operations are subject to stringent regulations
relating to protection of the environment and waste handling which may impose
liability on us for our own noncompliance and, in addition, that of other
parties without regard to whether we were negligent or otherwise at fault.
Compliance with applicable laws and regulations may require us to incur
significant expenses and capital expenditures which could have a material and
adverse effect on our operations by increasing our expenses and limiting our
future contract drilling opportunities.
We have had only two profitable years since 1991.
We have a history of losses with only two profitable years since 1991. In
1997, we had net income of $10.2 million, and in 2001 we had net income of
$68.5 million. Our ability to achieve profitability in the future will depend
on many factors, but primarily on the number of days our rigs work during any
period and the rates we charge our customers for them during that period. In
the years in which we incurred losses those losses were primarily due to the
fact that the number of days our rigs worked and the rates we were able to
charge customers for the days worked generated insufficient revenue to cover
our expenses in those years. In some years, we have also incurred charges for
impairment of our drilling equipment assets that contributed to our losses in a
year. This was the case in 2002, when we incurred a $3.5 million asset
impairment charge and reported a loss of $21.5 million for the year.
6
Table of Contents
Unexpected cost overruns on our turnkey and footage drilling jobs could
adversely affect us.
We have historically derived a significant portion of our revenues and
operating margin from turnkey and footage drilling contracts, and we expect
that they will continue to represent a significant component of our revenues.
The occurrence of operating cost overruns on our turnkey and footage jobs could
have a material adverse effect on our financial position and results of
operations. Under a typical turnkey or footage drilling contract, we agree to
drill a well for our customer to a specified depth and under specified
conditions for a fixed price. We typically provide technical expertise and
engineering services, as well as most of the equipment required for the
drilling of turnkey and footage wells. We often subcontract for related
services. Under typical turnkey drilling arrangements, we do not receive
progress payments and are entitled to be paid by our customer only after we
have performed the terms of the drilling contract in full. For these reasons,
the risk to us under turnkey and footage drilling contracts is substantially
greater than for wells drilled on a daywork basis because we must assume most
of the risks associated with drilling operations that are generally assumed by
our customer under a daywork contract.
We have a significant amount of indebtedness and could incur additional
indebtedness, which could materially and adversely affect our financial
condition and results of operations and prevent us from fulfilling our
obligations under our outstanding indebtedness.
We have now and will continue to have a significant amount of
indebtedness. As of the date of this prospectus, our total long-term
indebtedness was approximately $275.0 million, primarily consisting of $150.0
million in principal amount of our 3.75% Contingent Convertible Notes due 2023
(the "3.75% Notes") and $125.0 million in principal amount of our Floating Rate
Contingent Convertible Senior Notes due 2024 (the "Floating Rate Notes").
Our substantial indebtedness could:
•
increase our vulnerability to general adverse economic and industry conditions;
•
require us to dedicate a substantial portion of our cash flow
from operations to payments on our indebtedness thereby reducing the
availability of our cash flow to fund working capital, capital
expenditures and other general corporate purposes;
•
limit our flexibility in planning for, or reacting to,
changes in our business and the industry in which we operate;
•
place us at a competitive disadvantage compared to our competitors that have less debt; and
•
limit our ability to borrow additional funds.
The terms of the 3.75% Notes and the Floating Rate Notes do not limit our
ability to incur additional indebtedness, including senior indebtedness, or to
grant liens on our assets. We and our subsidiaries may incur substantial
additional indebtedness and liens on our assets in the future.
The Floating Rate Notes bear interest annually at a rate equal to 3-month
LIBOR, adjusted quarterly, minus a spread of 0.05%. Although the interest rate
on the Floating Rate Notes will never be more than 6.00%, we are subject to
market risk exposure related to changes in interest rates on these notes up to
6.00%. A significant increase in the 3-month LIBOR rate would increase the
interest rate on the Floating Rate Notes and the amount of interest we pay on
these notes, which may have a material adverse effect on our financial
condition and liquidity.
Our credit agreement and future debt arrangements may prohibit us from
participation in certain transactions that we may consider advantageous.
Our credit facility contains restrictions on our ability and the ability
of certain of our subsidiaries to engage in certain types of transactions.
These restrictive covenants may adversely affect our ability to pursue business
acquisitions. These include covenants which may prohibit or limit our ability
to:
7
Table of Contents
•
incur additional indebtedness;
•
pay dividends or make other restricted payments;
•
repurchase our equity securities;
•
sell material assets;
•
grant or permit liens to exist on our assets;
•
enter into sale and lease-back transactions;
•
make certain investments;
•
enter into transactions with related persons; and
•
engage in lines of business unrelated to our core land drilling business.
Our credit facility also contains financial ratio covenants that are
triggered when certain conditions are met. They may also limit our ability to
respond to changes in market conditions. Our ability to meet the financial
ratio covenants of our credit agreement can be affected by events and
conditions beyond our control and we may be unable to meet those tests. We may
in the future incur additional indebtedness that may contain additional
covenants that are more restrictive than our current covenants.
If circumstances arise in which we are in default under our various credit
arrangements, our cash and other assets may be insufficient to repay our
indebtedness.
Credit ratings affect our ability to obtain financing and the cost of such
financing.
Our credit ratings affect our ability to obtain financing and the cost of
such financing. At November 16, 2004, our corporate credit and senior unsecured
debt ratings were B1 by Moody's Investors Service and BB– by Standard & Poor's
Ratings Group. On March 10, 2004, Standard and Poor's affirmed our BB– ratings
but changed its outlook to negative following a review of our proposed
acquisition of New Patriot Drilling Corporation, which we have since completed.
In determining our credit ratings, the rating agencies consider a number of
both quantitative and qualitative factors. These factors include earnings,
fixed charges such as interest, cash flows, total debt outstanding, off balance
sheet obligations and other commitments, total capitalization and various
ratios calculated from these factors. The rating agencies also consider
predictability of cash flows, business strategy, industry conditions and
contingencies. Lower ratings on our senior unsecured debt could impair our
ability to obtain additional financing and will increase the cost of the
financing that we do obtain.
We could be adversely affected if shortages of equipment, supplies or personnel
occur.
While we are not currently experiencing any shortages, from time to time
there have been shortages of drilling equipment and supplies which we believe
could reoccur. During periods of shortages, the cost and delivery times of
equipment and supplies are substantially greater. In the past, in response to
such shortages, we have entered into agreements with various suppliers and
manufacturers that enabled us to reduce our exposure to price increases and
supply shortages. Although we have formed many informal supply arrangements
with equipment manufacturers and suppliers, we cannot assure you that we will
be able to maintain existing arrangements. Shortages of drilling equipment or
supplies could delay and adversely affect our ability to return to service our
rigs held for future refurbishment and obtain contracts for our marketed rigs,
which could have a material adverse effect on our financial condition and
results of operations.
Although we have not encountered material difficulty in hiring and
retaining qualified rig crews, such shortages have occurred in the past in our
industry. We may experience shortages of qualified personnel to operate our
rigs, which could have a material adverse effect on our financial condition and
results of operations.
8
Table of Contents
RISKS RELATED TO OUR COMMON STOCK
Investors in our common stock should not expect to receive dividend income, and
will be dependent on the appreciation of our common stock to earn a return on
their investment.
The decision to pay a dividend on our common stock rests with our board of
directors and will depend on our earnings, available cash, capital requirements
and financial condition. We have never declared a cash dividend on our common
stock and do not expect to pay cash dividends on our common stock for the
foreseeable future. We expect that all cash flow generated from our operations
in the foreseeable future will be retained and used to develop or expand our
business, pay debt service and reduce outstanding indebtedness. Furthermore,
the terms of our credit facility prohibit the payment of dividends without the
prior written consent of the lenders. Investors will likely have to depend on
sales of our common stock at appreciated prices, which we cannot assure, in
order to achieve a positive return on their investment in our common stock.
Certain provisions of our organizational documents, securities and credit
agreement have anti-takeover effects which may prevent our shareholders from
receiving the maximum value for their shares.
Our articles of incorporation, bylaws, securities and credit agreement
contain certain provisions that may delay or prevent entirely a change of
control transaction not supported by our board of directors, or any transaction
which may have that general effect. These provisions include:
•
classification of our board of directors into three classes,
with each class serving a staggered three year term;
•
giving our board of directors the exclusive authority to
adopt, amend or repeal our bylaws and thus prohibiting shareholders
from doing so;
•
requiring our shareholders to give advance notice of their
intent to submit a proposal at the annual meeting; and
•
limiting the ability of our shareholders to call a special
meeting and act by written consent.
Additionally, the indentures under which our 3.75% Notes and Floating Rate
Notes are issued require us to offer to repurchase the 3.75% Notes and Floating
Rate Notes then outstanding at a purchase price equal to 100% of the principal
amount plus accrued and unpaid interest and liquidated damages, if any, to the
date of repurchase in the event that we become subject to a change of control,
as defined in the indentures. This feature of the indentures could also have
the effect of discouraging potentially attractive change of control offers.
Furthermore, we have adopted a shareholder rights plan which may have the
effect of impeding a hostile attempt to acquire control of us.
Large amounts of our common stock may be resold into the market in the future
which could cause the market price of our common stock to drop significantly,
even if our business is doing well.
As of November 16, 2004, 188.8 million shares of our common stock were
issued and outstanding. In addition, as of November 16, 2004, we had issued
options to purchase approximately 7.9 million shares of our common stock, of
which options to acquire approximately 4.1 million shares of common stock were
exercisable, 23.3 million shares of common stock were issuable upon conversion
of the 3.75% Notes and 19.2 million shares of common stock were issuable upon
conversion of the Floating Rate Notes. The market price of our common stock
could drop significantly if future sales of substantial amounts of our common
stock occur, or if the perception exists that substantial sales may occur.
9
Table of Contents
WHERE YOU CAN FIND MORE INFORMATION
This prospectus constitutes a part of a registration statement on Form S-8
that we filed with the SEC under the Securities Act. This prospectus does not
contain all the information set forth in the registration statement. You
should refer to the registration statement and its related exhibits and
schedules for further information about our company and the shares offered in
this prospectus. Statements contained in this prospectus concerning the
provisions of any document are not necessarily complete and, in each instance,
reference is made to the copy of that document filed as an exhibit to the
registration statement or otherwise filed with the SEC, and each such statement
is qualified by this reference. The registration statement and its exhibits
and schedules are on file at the offices of the SEC and may be inspected
without charge.
We file annual, quarterly, and special reports, proxy statements and other
information with the Securities and Exchange Commission. You can read and copy
any materials we file with the SEC at the SEC's public reference room at 450
Fifth Street, N.W., Washington, D.C. 20549. You can obtain information about
the operation of the SEC's public reference room by calling the SEC at
1-800-SEC-0330. The SEC also maintains a Web site that contains information we
file electronically with the SEC, which you can access over the Internet at
http://www.sec.gov
.
We are incorporating by reference in this prospectus information we file
with the SEC, which means that we are disclosing important information to you
by referring you to those documents. The information we incorporate by
reference is an important part of this prospectus, and later information that
we file with the SEC automatically will update and supersede this information.
We incorporate by reference the documents listed below:
•
our annual report on Form 10-K/A (Amendment No. 2) for the
year ended December 31, 2003, filed on August 11, 2004;
•
our quarterly report on Form 10-Q for the quarter ended
September 30, 2004, filed on November 9, 2004;
•
our quarterly report on Form 10-Q for the quarter ended June
30, 2004, filed August 9, 2004;
•
our quarterly report on Form 10-Q/A (Amendment No. 2) for the
quarter ended March 31, 2004, filed on August 11, 2004;
•
our definitive proxy statement for our 2004 annual meeting of
shareholders filed on March 26, 2004;
•
our current report on Form 8-K, filed on November 3, 2004;
•
our current report on Form 8-K, filed on April 22, 2004;
•
our current report on Form 8-K, filed on April 7, 2004;
•
our current report on Form 8-K, filed on April 1, 2004;
•
our current report on Form 8-K, filed on March 29, 2004;
•
our current report on Form 8-K, filed on March 9, 2004;
•
the description of our common stock contained in our current
report on Form 8-K dated October 6, 1997; and
•
the description of our preferred stock purchase rights
contained in our registration statement on Form 8-A/A filed with the
SEC on October 9, 1998.
10
Table of Contents
You may request a copy of these filings, which we will provide to you at
no cost, by writing or telephoning us at the following address and telephone
number:
Grey Wolf, Inc.
10370 Richmond Avenue, Suite 600
Houston, Texas 77042
(713) 435-6100
Attention: Investor Relations
All documents filed by us pursuant to Sections 13(a), 13(c), 14 or 15(d)
of the Securities Exchange Act of 1934, as amended (excluding any information
in those documents that are deemed by the rules of the SEC to be furnished but
not filed) after the date of this filing and before the termination of this
offering shall be deemed to be incorporated in this prospectus and to be a part
hereof from the date of the filing of such document. Any statement contained
in a document incorporated by reference herein shall be deemed to be modified
or superseded for all purposes to the extent that a statement contained in this
prospectus, or in any other subsequently filed document which is also
incorporated or deemed to be incorporated by reference, modifies or supersedes
such statement. Any statement so modified or superseded shall not be deemed,
except as so modified or superseded, to constitute a part of this prospectus.
FORWARD-LOOKING STATEMENTS
This prospectus, including the information we incorporate by reference,
contains "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. All statements other than statements of historical
facts included, or incorporated by reference, in this prospectus are
forward-looking statements, including statements regarding the following:
•
business strategy;
•
demand for our services;
•
rig activity and financial results;
•
reactivation and cost of reactivation of non-marketed rigs;
•
projected dayrates;
•
rigs expected to be engaged in turnkey and footage operations;
•
projected tax rates;
•
wage rates and retention of employees;
•
sufficiency of our capital resources and liquidity; and
•
depreciation and capital expenditures.
Although we believe the forward-looking statements are reasonable, we
cannot assure you that these statements will prove to be correct. We have
based these statements on assumptions and analyses in light of our experience
and perception of historical trends, current conditions, expected future
development and other factors we believe were appropriate when the statements
were made. The risks and uncertainties described under "Risk Factors" may
cause our actual results to vary materially from those in our forward-looking
statements.
11
Table of Contents
Our forward-looking statements speak only as of the date specified in such
statements or, if no date is stated, as of the date of this prospectus. We
expressly disclaim any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statement contained in this
prospectus to reflect any change in our expectations or with regard to any
change in events, conditions or circumstances on which our forward-looking
statements are based.
SELLING SHAREHOLDERS
About the Shares Offered
This
prospectus relates to our registration for resale of up to 11,687,305
shares of our common stock by the selling shareholders identified below. In
some instances, the selling shareholder is the pledgee, donee or transferee of
the shares or options to acquire the shares. The shares offered hereby were
issued upon the exercise of options to acquire our shares granted pursuant to
one of our employee benefit plans to persons who were our directors, officers,
employees or consultants when they acquired their shares or options to acquire
their shares. All of the shares offered hereby may be considered either
restricted securities or control securities. Under federal securities laws
restricted securities and control securities may not be resold unless the sale
is made pursuant to an exemption from registration, such as Rule 144 under the
Securities Act, or pursuant to an effective registration statement, like the
one of which this prospectus is a part. We have registered the resale of the
shares offered hereby to enable the selling shareholders listed below and their
pledgees, donees and transferees to sell their shares in compliance with the
securities registration requirements of federal securities law. They may,
however, choose to resell their shares under applicable exemptions from
registration, such as Rule 144, rather than in reliance on this prospectus.
Beneficial Ownership and Shares Offered
The following table identifies each selling shareholder and the total
number and percentage of shares of our common stock owned by each at November
16, 2004, as calculated in accordance with the rules of the SEC for determining
beneficial ownership of securities. It also shows the total number of shares
that each selling shareholder may choose to sell pursuant to this prospectus
and the total number and percentage of shares that will be beneficially owned
by each selling shareholder after the offering.
The table assumes that all shares that may be sold by each selling
shareholder will be sold. We do not know how long the selling shareholders
will choose to continue to hold the shares covered by this prospectus, how many
shares they may choose to sell, or the methods that they may choose to make any
such sales. See "Plan of Distribution."
The selling shareholders and certain of their respective pledgees, donees,
transferees and other successors in interest may offer all, none or a portion
of the shares of common stock offered pursuant to this prospectus. The exact
number of shares of common stock that each selling shareholder may retain upon
completion of this offering cannot be determined at this time. Information
regarding the selling shareholders, including the number of shares offered for
sale, may change from time to time and any changed information will be set
forth in a prospectus supplement, if required.
Shares Beneficially
Owned Before Offering (1)
Shares
That
May Be
Shares Beneficially Owned
After the Offering
Sold
Name of Beneficial Owner
Position
Number
Percent
Hereby
Number
Percent
Thomas P. Richards
Chief Executive Officer, President, Chairman of the Board, and Director
1,617,700
(2)
*
2,447,700
300,000
*
William R. Ziegler
Director and Vice Chairman of the Board
2,254,616
(3)
1.2
50,000
2,254,616
1.2
12
Table of Contents
Shares Beneficially
Owned Before Offering (1)
Shares
That
May Be
Shares Beneficially Owned
After the Offering
Sold
Name of Beneficial Owner
Position
Number
Percent
Hereby
Number
Percent
Frank M. Brown
Director
111,333
(4)
*
50,000
111,333
*
William T. Donovan
Director
791,271
(5)
*
50,000
791,271
*
James K.B. Nelson
Director
3,560,333
(6)
1.9
50,000
3,560,333
1.9
Robert E. Rose
Director
128,333
(7)
*
50,000
128,333
*
Steven A. Webster
Director
2,430,616
(8)
1.3
50,000
2,430,616
1.3
David W. Wehlmann
Executive Vice President, Chief Financial Officer and Secretary
411,960
(9)
*
818,820
-0-
*
Edward S. Jacob III
Senior Vice President-Operations
64,445
(10)
*
344,110
125
*
Gary D. Lee
Senior Vice President-Human Resources
43,666
(11)
*
229,130
1,666
*
Kent D. Cauley
Vice President and Controller
17,720
(12)
*
42,820
-0-
*
Merrie S. Costley
Former Officer
82,380
(13)
*
154,070
-0-
*
Donald J. Guedry, Jr.
Vice President and Treasurer
181,186
(14)
*
241,810
3,166
*
All other persons who
acquired shares or
options to acquire
shares of our common
stock pursuant to one
of our employee benefit
plans (15)
2,396,005
*
Indicates less than 1%
(1)
Unless noted otherwise, all shares of common stock are beneficially owned
by the selling shareholders. Beneficial ownership is calculated in
accordance with SEC Rule 13d-3. Under that rule, shares underlying stock
options are deemed to be beneficially owned only if the stock options are
exercisable within 60 days. Therefore, the number of shares reflected in
the "Shares Beneficially Owned" column excludes shares underlying options
that are only exercisable after 60 days, while the "Shares That May Be
Sold Hereby" column may include shares underlying options that are
exercisable either before or after 60 days. Accordingly, the number of
"Shares That May Be Sold Hereby" shown for a shareholder may be greater
than the number of shares shown for the same shareholder as "Shares
Beneficially Owned."
(2)
Includes 2,447,700 shares of common stock which Mr. Richards may acquire
upon exercise of options, of which 1,317,700 are exercisable within 60
days of November 16, 2004, and 300,000 shares of common stock owned by
Richards Brothers Interests, L.P. Mr. Richards is the president of the
general partner of Richards Brothers Interests but disclaims beneficial
ownership of shares owned by Richards Brothers Interests, a limited
partnership whose limited partners are the sons of Mr. Richards.
(3)
Includes 2,071,283 shares of common stock owned by Mr. Ziegler, 250,000
shares of common stock (50,000 shares under our 2003 Incentive Plan) which
Mr. Ziegler may acquire upon exercise of options, of which 183,333 are
exercisable within 60 days of November 16, 2004.
13
Table of Contents
(4)
Includes 3,000 shares of common stock owned by Mr. Brown and 175,000
shares of common stock (50,000 shares under our 2003 Incentive Plan) which
Mr. Brown may acquire upon exercise of options, of which 108,333 are
exercisable within 60 days of November 16, 2004.
(5)
Includes 317,278 shares of common stock held by Mr. Donovan, 268,660
shares of common stock owned by Cambridge Associates, L.P., 22,000 shares
of common stock beneficially owned by family members living in the same
household and 250,000 shares of common stock (50,000 shares under our 2003
Incentive Plan) which Mr. Donovan may acquire upon exercise of options, of
which 183,333 are exercisable within 60 days of November 16, 2004. Mr.
Donovan has voting and investment control over shares owned by Cambridge
Associates, L.P. but disclaims beneficial ownership of 214,056 shares of
common stock owned by Cambridge Associates, L.P. and 22,000 shares owned
by family members.
(6)
Includes 601,500 shares of common stock owned by Mr. Nelson, 125,500
shares of common stock (50,000 shares under our 2003 Incentive Plan) which
Mr. Nelson may acquire upon exercise of options, of which 58,833 are
exercisable within 60 days of November 16, 2004, and 2,900,000 shares of
common stock owned by Felicity Ventures Ltd. Mr. Nelson indirectly
controls Felicity Ventures Ltd.
(7)
Includes 20,000 shares of common stock owned by Mr. Rose and 175,000
shares of common stock (50,000 shares under our 2003 Incentive Plan) which
Mr. Rose may acquire upon exercise of options, of which 108,333 are
exercisable within 60 days of November 16, 2004.
(8)
Includes 2,247,283 shares of common stock owned by Mr. Webster, 250,000
shares of common stock (50,000 shares under our 2003 Incentive Plan) which
Mr. Webster may acquire upon exercise of options, of which 183,333 are
exercisable within 60 days of November 16, 2004.
(9)
Includes 818,820 shares of common stock which Mr. Wehlmann may acquire
upon exercise of options, of which 411,960 are exercisable within 60 days
of November 16, 2004.
(10)
Includes 344,110 shares of common stock which Mr. Jacob may acquire upon
exercise of options, of which 64,320 are exercisable within 60 days of
November 16, 2004 and 125 shares of common stock held in the 401(k) Plan.
(11)
Includes 229,130 shares of common stock which Mr. Lee may acquire upon
exercise of options, of which 42,000 are exercisable within 60 days of
November 16, 2004 and 1,666 shares of common stock held in the 401(k)
Plan.
(12)
Includes 42,820 shares of common stock which Mr. Cauley may acquire upon
exercise of options, of which 17,720 are exercisable within 60 days of
November 16, 2004.
(13)
Includes 154,070 shares of common stock which Ms. Costley may acquire
upon exercise of options, of which 82,380 are exercisable within 60 days
of November 16, 2004.
(14)
Includes 1,000 shares of common stock owned by Mr. Guedry, 241,810 shares
of common stock which Mr. Guedry may acquire upon exercise of options, of
which 178,020 are exercisable within 60 days of November 16, 2004, and
2,166 shares of common stock held in the 401(k) Plan.
(15)
Information concerning other selling shareholders will be set forth in
amendments to this registration statement or prospectus supplements from
time to time, if and when necessary.
PLAN OF DISTRIBUTION
The selling shareholders may sell shares of our common stock from time to
time in transactions:
•
on the exchanges or quotation systems on which our common
stock may then be listed or quoted;
14
Table of Contents
•
in the over-the-counter market;
•
in transactions otherwise than on such exchanges or services
or in the over-the-counter market; or
•
any combination of the foregoing.
Sales of shares of common stock may be made at fixed prices which may be
changed, at market prices prevailing at the time of sale, at prices related to
such prevailing market prices or at negotiated prices. As used in this
prospectus, "selling shareholders" includes pledgees, donees, transferees and
other successors in interest to the selling shareholders that receive shares as
a gift or other non-sale related transfer. The selling shareholders may sell
shares of our common stock to or through broker-dealers, and such
broker-dealers may receive compensation in the form of discounts, concessions
or commissions from the selling shareholders or the purchasers of the shares
for whom such broker-dealers may act as agent or to whom they sell as
principal, or both. The compensation received by any broker-dealer may be in
excess of customary commissions.
Other methods by which the shares of our common stock may be sold include, without limitation:
•
ordinary brokerage transactions and transactions in which the broker solicits purchasers;
•
"at the market" to or through market makers or into an existing market for our common stock;
•
in other ways not involving market makers or
established trading markets, including direct sales to purchasers
or sales effected through agents;
•
in privately negotiated transactions;
•
block trades in which the broker or dealer will attempt
to sell shares as agent but may position and resell a portion of
the block as principal to facilitate the transaction;
•
through transactions in options or swaps or other
derivatives, whether exchange-listed or otherwise;
•
through short sales;
•
any combination of any such methods of sale; or
•
any other method pursuant to applicable law.
The selling shareholders may also enter into option or other transactions
with broker-dealers which require the delivery to those broker-dealers of the
common stock offered by this prospectus, which common stock such broker-dealers
may resell under this prospectus.
In addition, each of the selling shareholders may adopt a trading plan
under Rule 10b5-1 of the Securities Exchange Act of 1934 to sell shares covered
by this prospectus. Sales not covered by this prospectus may also be made by
the selling shareholders pursuant to Rule 144 or another applicable exemption
under the Securities Act.
To the extent required, this prospectus also may be amended or
supplemented from time to time to describe a specific plan of distribution or
any material arrangement that a selling shareholder has entered into for the
sale of shares, including the details of any underwritten distribution.
In offering the shares covered by this prospectus, the selling
shareholders and any broker-dealers, underwriters or agents who execute sales
for the selling shareholders may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales. Any profits
realized by the selling shareholders and the compensation of any broker-dealer,
underwriter or agent may be deemed to be underwriting discounts and
15
Table of Contents
commissions. We know of no existing arrangements between any selling
shareholder and any other selling shareholder, underwriter, broker-dealer or
other agent relating to the sale or distribution of the shares. No
underwriter, broker-dealer or agent has been engaged by us in connection with
the distribution of the shares.
To comply with the securities laws of certain states, if applicable, the
shares must be sold in such jurisdictions only through registered or licensed
brokers or dealers. In addition, in certain states the shares may not be sold
unless they have been registered or qualified for sale in the applicable state
or an exemption from the registration or qualification requirement is available
and is complied with.
The selling shareholders and any other person participating in a
distribution of the shares covered by this prospectus will be subject to the
applicable provisions of the Securities Exchange Act of 1934 (the "Exchange
Act") and the rules and regulations thereunder. Regulation M of the Exchange
Act may limit the timing of purchases and sales of shares by the selling
shareholders and any other person. In addition, Regulation M may restrict the
ability of any person engaged in the distribution of the shares to engage in
market-making activities with respect to our common stock for a period of up to
five business days before the distribution.
LEGAL MATTERS
The legality of the securities will be passed upon for us by Porter &
Hedges, L.L.P., Houston, Texas. If the securities are being distributed in an
underwritten offering, certain legal matters will be passed for the
underwriters by counsel identified in the related prospectus supplement.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The consolidated financial statements and schedule of Grey Wolf, Inc. as
of December 31, 2003 and 2002 and for each of the years in the three-year
period ended December 31, 2003, have been incorporated by reference herein in
reliance upon the reports of KPMG LLP, an independent registered public
accounting firm, incorporated by reference herein.
16
Table of Contents
We have not authorized any dealer, salesperson or
any other person to give any information or to
represent anything not contained in this
prospectus. You must not rely on any unauthorized
information. This prospectus does not offer to
sell or buy any shares in any jurisdiction where
it is unlawful. The information in this
prospectus is current as of the date below.
Grey Wolf, Inc.
11,687,305
Shares
of
Common Stock
PROSPECTUS
November 19, 2004
17
Table of Contents
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
ITEM 3. INCORPORATION OF DOCUMENTS BY REFERENCE
The following documents filed by Grey Wolf, Inc., a Texas corporation,
with the Securities and Exchange Commission ("Commission") are incorporated
into this registration statement by reference:
•
our annual report on Form 10-K/A (Amendment No. 2) for the year
ended December 31, 2003, filed on August 11, 2004;
•
our quarterly report on Form 10-Q for the quarter ended September 30, 2004, filed on November 9, 2004;
•
our quarterly report on Form 10-Q for the quarter ended June 30, 2004, filed August 9, 2004;
•
our quarterly report on Form 10-Q/A (Amendment No. 2) for the
quarter ended March 31, 2004, filed on August 11, 2004;
•
our definitive proxy statement for our 2004 annual meeting of shareholders filed on March 26, 2004;
•
our current report on Form 8-K, filed on November 3, 2004;
•
our current report on Form 8-K, filed on April 22, 2004;
•
our current report on Form 8-K, filed on April 7, 2004;
•
our current report on Form 8-K, filed on April 1, 2004;
•
our current report on Form 8-K, filed on March 29, 2004;
•
our current report on Form 8-K, filed on March 9, 2004;
•
the description of our common stock contained in our current report on Form 8-K, dated October 6, 1997; and
•
the description of our preferred stock purchase rights
contained in our registration statement on Form 8-A/A, filed with the
Commission on October 9, 1998.
All documents filed by us with the Commission pursuant to Sections 13(a),
13(c), 14 and 15(d) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act") (excluding any information in those documents that are deemed
by the rules of the Commission to be furnished not filed), subsequent to the
filing date of this registration statement and prior to the filing of a
post-effective amendment to this registration statement which indicates that
all securities offered have been sold or which deregisters all securities then
remaining unsold shall be deemed to be incorporated by reference in this
registration statement and to be a part hereof from the date of filing such
documents. We will provide without charge to each participant in the 2003
Incentive Plan, the Form of Incentive Stock Option Agreement and the Form of
Non-Qualified Stock Option Agreement, upon written or oral request of such
person, a copy (without exhibits, unless such exhibits are specifically
incorporated by reference) of any or all of the documents incorporated by
reference pursuant to this Item 3.
Table of Contents
ITEM 4. DESCRIPTION OF SECURITIES
Not applicable.
ITEM 5. INTERESTS OF NAMED EXPERTS AND COUNSEL
Not applicable.
ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS
Under Article 1302-7.06 of the Texas Miscellaneous Corporation Laws Act,
the articles of incorporation of a Texas corporation may provide that a
director of that corporation shall not be liable, or shall be liable only to
the extent provided in the articles of incorporation, to the corporation or its
shareholders for monetary damages for acts or omissions in the director's
capacity as a director, except that the articles of incorporation cannot
provide for the elimination or limitation of liability of a director to the
extent that the director is found liable for:
•
breach of the director's duty of loyalty to the corporation or
its shareholders;
•
acts or omissions not in good faith that constitute a breach of
duty of the director to the corporation or an act or omission that
involves intentional misconduct or a knowing violation of the law;
•
any transaction from which the director received an improper
benefit, whether or not the benefit resulted from an action taken
within the scope of the director's office; or
•
an act or omission for which the liability of a director is
expressly provided by an applicable statute.
Article 10 of our amended and restated Articles of Incorporation states
that no director shall be liable to us or our shareholders for monetary damages
for an act or omission in the director's capacity as a director, provided,
however, that such Article shall not eliminate or limit the liability of a
director to the extent the director is found liable for the actions, omissions
or conduct listed above.
In addition, Article 2.02-1 of the Texas Business Corporation Act (the
"TBCA") authorizes a Texas corporation to indemnify a person who was, is, or is
threatened to be made a named defendant or respondent in a proceeding,
including any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative, arbitrative, or investigative, because
the person is or was a director.
The TBCA provides that unless a court of competent jurisdiction determines
otherwise, indemnification is permitted only if it is determined that the
person:
•
conducted himself in good faith;
•
reasonably believed (a) in the case of conduct in his official
capacity as a director of the corporation, that his conduct was in
the corporation's best interests; and (b) in all other cases, that
his conduct was at least not opposed to the corporation's best
interests; and
•
in the case of any criminal proceeding, had no reasonable cause
to believe his conduct was unlawful.
A person may be indemnified under Article 2.02-1 of the TBCA against
•
judgments;
Table of Contents
•
penalties (including excise and similar taxes);
•
fines;
•
settlements; and
•
reasonable expenses actually incurred by the person (including court costs and attorneys' fees).
However, if the person is found liable to the corporation or is found
liable on the basis that personal benefit was improperly received by him, the
indemnification is limited to reasonable expenses actually incurred and shall
not be made in respect of any proceeding in which the person has been found
liable for willful or intentional misconduct in the performance of his duty to
the corporation. A corporation is obligated under Article 2.02-1 of the TBCA
to indemnify a director or officer against reasonable expenses incurred by him
in connection with a proceeding in which he is named defendant or respondent
because he is or was a director or officer if he has been wholly successful, on
the merits or otherwise, in the defense of the proceeding.
Under Article 2.02-1 of the TBCA a corporation may:
•
indemnify and advance expenses to officers, employees, agents
or other persons who are or were serving at the request of the
corporation as a director, officer, partner, venturer, proprietor,
trustee, employee, agent or similar functionary of another entity to
the same extent that it may indemnify and advance expenses to its
directors;
•
indemnify and advance expenses to directors and such other
persons set forth above to such further extent, consistent with law,
as may be provided in the corporation's articles of incorporation,
bylaws, action of its board of directors, or contract or as permitted
by common law;
•
purchase and maintain insurance or another arrangement on
behalf of directors and such other persons set forth above against
any liability asserted against him and incurred by him in such a
capacity or arising out of his status as such a person.
Our Bylaws substantively provide that directors and officers of the
company will be indemnified to the fullest extent permitted by the TBCA.
The company maintains directors' and officers' insurance. The company has
entered into agreements to indemnify its executive officers regarding
liabilities that may result from such officer's service as an officer or
director of the company.
ITEM 7. EXEMPTION FROM REGISTRATION CLAIMED
Restricted securities being registered for resale hereunder were issued in
reliance on the exemption from registration contained in Section 4(2) of the
Securities Act of 1933 to sophisticated, well-informed persons who were or
became our executive officers or directors.
ITEM 8. EXHIBITS
Exhibit
Number
Description
4.1
—
2003 Incentive Plan (incorporated herein by reference to Appendix A of
the Grey Wolf, Inc. 2003 Annual Meeting of Shareholders definitive
proxy materials, filed March 28, 2003).
Table of Contents
Exhibit
Number
Description
*4.2
—
Form of Non-Qualified Stock Option Agreement for Employees
*4.3
—
Form of Non-Qualified Stock Option Agreement for Non-Employee Directors
* 4.4
—
Non-Qualified Stock Option Agreement for Thomas P. Richards
4.5
—
Rights Agreement dated as of September 21, 1998 by and between the
Company and American Stock Transfer and Trust Company as Rights Agent
(incorporated herein by reference to Exhibit 4.1 to Form 8-K filed
September 22, 1998).
*5.1
—
Opinion of Porter & Hedges, L.L.P.
*23.1
—
Consent of Independent Registered
Public Accounting Firm, KPMG LLP.
23.2
—
Consent of Porter & Hedges, L.L.P. (contained in Exhibit 5.1).
24.1
—
Powers of Attorney (included on signature pages).
*
Filed herewith.
ITEM 9. UNDERTAKINGS
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement to:
(i) Include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933, as amended (the "Securities Act");
(ii) Reflect in the prospectus any facts or events arising after
the effective date of this registration statement (or the most recent
post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set
forth in this registration statement. Notwithstanding the foregoing,
any increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed that which
was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of
prospectus filed with the Commission pursuant to Rule 424(b) if, in
the aggregate, the changes in volume and price represent no more than
a 20% change in the maximum aggregate offering price set forth in the
"Calculation of Registration Fee" table in the effective registration
statement.
(iii) Include any material information with respect to the plan
of distribution not previously disclosed in this registration
statement or any material change to such information in this
registration statement.
Provided, however
, that paragraphs (1)(i) and (1)(ii) above do not apply
if the information required to be included in a post-effective amendment
by those clauses is contained in periodic reports filed by the registrant
pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
that are incorporated by reference into this registration statement;
(2) That, for the purpose of determining any liability under the
Securities Act, each such post-effective amendment shall be deemed to be a
new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at
the termination of the offering.
Table of Contents
The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act, each filing of the
registrant's annual report pursuant to Section 13(a) or Section 15(d) of the
Exchange Act (and, where applicable, each filing of an employee benefit plan's
annual report pursuant to Section 15(d) of the Exchange Act) that is
incorporated by reference in the registration statement shall be deemed to be a
new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Commission such indemnification is
against public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by the registrant of expenses incurred or
paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act and will be governed
by the final adjudication of such issue.
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Houston, State of Texas, on this 19th day of
November, 2004.
GREY WOLF, INC.
By:
/s/ David W. Wehlmann
David W. Wehlmann
Executive Vice President,
Chief Financial Officer and Secretary
POWER OF ATTORNEY
Know all men by these presents, that each person whose signature appears
below, constitutes and appoints Thomas P. Richards, David W. Wehlmann and Kent
D. Cauley and each of them, our true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, to do any and all acts and
things and execute, in the name of the undersigned, any and all instruments
which said attorneys-in-fact and agents may deem necessary or advisable in
order to enable Grey Wolf, Inc. to comply with the Securities Act of 1933, as
amended (the "Securities Act") and any requirements of the Securities and
Exchange Commission in respect thereof, in connection with the filing with the
Securities and Exchange Commission of the Registration Statement on Form S-8
under the Securities Act, including specifically but without limitation, power
and authority to sign the name of the undersigned to such Registration
Statement, and any amendments to such Registration Statement (including
post-effective amendments and additional registration statements filed pursuant
to Rule 462 of the Securities Act), and to file the same with all exhibits
thereto and other documents in connection therewith, with the Securities and
Exchange Commission, to sign any and all applications, Registration Statements,
notices or other documents necessary or advisable to comply with applicable
state securities laws, and to file the same, together with other documents in
connection therewith with the appropriate state securities authorities,
granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to do and to perform each and every act and thing requisite or
necessary to be done in and about the premises, as fully and to all intents and
purposes as the undersigned might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, and any of them, or
their substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons at Grey Wolf,
Inc. in the capacities and on the dates indicated.
Signature
Title
Date
/s/ Thomas P. Richards
Thomas P. Richards
President, Chief Executive
Officer and Chairman of the
Board
November 19, 2004
/s/ David W. Wehlmann
David W. Wehlmann
Executive Vice President, Chief
Financial Officer and Secretary
November 19, 2004
Table of Contents
Signature
Title
Date
/s/ Kent D. Cauley
Kent D. Cauley
Vice President and Controller
November 19, 2004
/s/ Frank M. Brown
Frank M. Brown
Director
November 19, 2004
/s/ William T. Donovan
William T. Donovan
Director
November 19, 2004
/s/ James K. B. Nelson
James K. B. Nelson
Director
November 19, 2004
/s/ Robert E. Rose
Robert E. Rose
Director
November 19, 2004
/s/ Steven A. Webster
Steven A. Webster
Director
November 19, 2004
/s/ William R. Ziegler
William R. Ziegler
Vice Chairman of the Board
November 19, 2004
Table of Contents
INDEX TO EXHIBITS
Exhibit
Number
Description
4.1
—
2003 Incentive Plan (incorporated herein by reference to Appendix A of
the Grey Wolf, Inc. 2003 Annual Meeting of Shareholders definitive
proxy materials, filed March 28, 2003).
*4.2
—
Form of Non-Qualified Stock Option Agreement for Employees
*4.3
—
Form of Non-Qualified Stock Option Agreement for Non-Employee Directors
* 4.4
—
Non-Qualified Stock Option Agreement for Thomas P. Richards
4.5
—
Rights Agreement dated as of September 21, 1998 by and between the
Company and American Stock Transfer and Trust Company as Rights Agent
(incorporated herein by reference to Exhibit 4.1 to Form 8-K filed
September 22, 1998).
*5.1
—
Opinion of Porter & Hedges, L.L.P.
*23.1
—
Consent of Independent Registered
Public Accounting Firm, KPMG LLP.
23.2
—
Consent of Porter & Hedges, L.L.P. (contained in Exhibit 5.1).
24.1
—
Powers of Attorney (included on signature pages).
*
Filed herewith.