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<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

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

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P align="center" style="font-size: 10pt"><B>Date of Report (Date of earliest event reported): March 9, 2009</B>

<P align="center">

<P align="center" style="font-size: 24pt"><B>ALLIS-CHALMERS ENERGY INC.<BR></B>
<FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>

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    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
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<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>001-02199</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>39-0126090</B></TD>
</TR>
<TR valign="top">
    <TD>(State or other Jurisdiction of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD>(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD>(IRS Employer Identification No.)</TD>
</TR>
</TABLE>

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    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>5075 Westheimer<BR>Suite 890<BR>Houston, Texas<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>77056</B></TD>
</TR>
<TR valign="top">
    <TD>(Address of Principal Executive Offices)</TD>
    <TD>&nbsp;</TD>
    <TD>(Zip Code)</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: <B>(713) 369-0550</B>


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    <TD nowrap style="border-bottom: 1px solid #000000"><B>&nbsp;</B></TD>
</TR>
<TR>
    <TD nowrap>(Former name or former address if changed since last report.)</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:

<P align="left" style="font-size: 10pt">
<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


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<P align="center" style="font-size: 10pt; display: none">1
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<P align="left" style="font-size: 10pt"><B>Item&nbsp;5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.</B>


<P align="left" style="font-size: 10pt"><I>Amendment of Performance Award</I>


<P align="left" style="font-size: 10pt; text-indent: 4%">As previously disclosed, on August&nbsp;3, 2007, the Board of Directors of Allis-Chalmers Energy Inc. (the &#147;Company&#148;)
awarded Munawar H. Hidayatallah (i)&nbsp;200,000 stock options to vest 20% on the first anniversary of the grant date, 20%
on the second anniversary of the grant date and the remaining 60% on the third anniversary of the grant date and (ii)&nbsp;a
performance award in the amount of 685,000 shares of restricted stock, to vest in three equal installments on April&nbsp;1
of 2008, 2009 and 2010 (or any of the 30 subsequent trading days
following such dates), or alternatively, any unvested shares would
cumulatively vest on April&nbsp;1, 2010 (or any of the 90 subsequent
trading days following such date), each such vesting subject to
Mr.&nbsp;Hidayatallah achieving certain performance criteria. On March&nbsp;11, 2009, Mr.&nbsp;Hidayatallah and the Company entered
into an amendment to the performance award agreement (the &#147;Amendment&#148;) to amend the cumulative vesting of such
performance shares to vest on April&nbsp;1, 2011 (or any of the 30 subsequent trading days following such date).  In addition, the performance criteria was amended so that any unvested shares would vest based on a total shareholder return value of 24% over a two year
look back period, rather than a total shareholder return value of 36% over a three year look back period. In consideration of the Amendment, Mr.&nbsp;Hidayatallah agreed to
surrender to the Company the 200,000 stock options previously granted to him on August&nbsp;3, 2007.


<P align="left" style="font-size: 10pt"><I>Waiver of Right to Bonus</I>


<P align="left" style="font-size: 10pt; text-indent: 4%">On March&nbsp;9, 2009, Munawar H. Hidayatallah, Chairman and Chief Executive Officer, Victor M. Perez, Chief Financial
Officer, Theodore F. Pound III, General Counsel and Secretary, David Bryan, President of Strata Directional Technology
LLC, Terrence P. Keane, Senior Vice President&#151;Oilfield Services and Mark Patterson, Senior Vice President&#151;Rental
Services, each entered into a letter agreement to waive their right to any bonuses set forth in their respective
employment agreements for calendar year 2009.


<P align="left" style="font-size: 10pt"><I>Agreement Descriptions</I>


<P align="left" style="font-size: 10pt; text-indent: 3%">The foregoing description of the Amendment and the waivers are qualified in their entirety by reference to the
full text of the Amendment and the waivers that are filed as Exhibits 10.1 and 10.2 hereto and are incorporated herein
by reference.


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Item&nbsp;9.01.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Financial Statements and Exhibits.</B></TD>
</TR>

</TABLE>


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

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<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit Number</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Performance award Agreement, dated March
11, 2009, between Allis-Chalmers Energy Inc. and Munawar H.
Hidayatallah.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter agreements dated March&nbsp;9, 2009, by each of Munawar H.
Hidayatallah, Victor M. Perez, Theodore F. Pound III, David
Bryan, Terrence P. Keane and Mark Patterson.</TD>
</TR>
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<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">2
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<P align="center" style="font-size: 10pt">SIGNATURES



<P align="left" style="font-size: 10pt; text-indent: 4%">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.

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<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">ALLIS-CHALMERS ENERGY 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="top"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: March&nbsp;12, 2009
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By: <u>/s/ Theodore F. Pound III&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></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">Name: Theodore F. Pound III<BR>
Title: General Counsel and Secretary</TD>
</TR>
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<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">3
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<P align="left" style="font-size: 10pt">EXHIBIT INDEX
<BR>
&nbsp;

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit Number</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Performance award Agreement, dated March
11, 2009, between Allis-Chalmers Energy Inc. and Munawar H.
Hidayatallah.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter agreements dated March&nbsp;9, 2009, by each of Munawar H.
Hidayatallah, Victor M. Perez, Theodore F. Pound III, David
Bryan, Terrence P. Keane and Mark Patterson.</TD>
</TR>
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</TABLE>
</DIV>


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

<P align="center" style="font-size: 10pt; display: none">4




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8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 9, 2009
ALLIS-CHALMERS ENERGY INC.
(Exact name of registrant as specified in its charter)
Delaware
001-02199
39-0126090
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
5075 Westheimer
Suite 890
Houston, Texas
77056
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code:
(713) 369-0550
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.
Amendment of Performance Award
As previously disclosed, on August 3, 2007, the Board of Directors of Allis-Chalmers Energy Inc. (the "Company")
awarded Munawar H. Hidayatallah (i) 200,000 stock options to vest 20% on the first anniversary of the grant date, 20%
on the second anniversary of the grant date and the remaining 60% on the third anniversary of the grant date and (ii) a
performance award in the amount of 685,000 shares of restricted stock, to vest in three equal installments on April 1
of 2008, 2009 and 2010 (or any of the 30 subsequent trading days
following such dates), or alternatively, any unvested shares would
cumulatively vest on April 1, 2010 (or any of the 90 subsequent
trading days following such date), each such vesting subject to
Mr. Hidayatallah achieving certain performance criteria. On March 11, 2009, Mr. Hidayatallah and the Company entered
into an amendment to the performance award agreement (the "Amendment") to amend the cumulative vesting of such
performance shares to vest on April 1, 2011 (or any of the 30 subsequent trading days following such date).  In addition, the performance criteria was amended so that any unvested shares would vest based on a total shareholder return value of 24% over a two year
look back period, rather than a total shareholder return value of 36% over a three year look back period. In consideration of the Amendment, Mr. Hidayatallah agreed to
surrender to the Company the 200,000 stock options previously granted to him on August 3, 2007.
Waiver of Right to Bonus
On March 9, 2009, Munawar H. Hidayatallah, Chairman and Chief Executive Officer, Victor M. Perez, Chief Financial
Officer, Theodore F. Pound III, General Counsel and Secretary, David Bryan, President of Strata Directional Technology
LLC, Terrence P. Keane, Senior Vice President—Oilfield Services and Mark Patterson, Senior Vice President—Rental
Services, each entered into a letter agreement to waive their right to any bonuses set forth in their respective
employment agreements for calendar year 2009.
Agreement Descriptions
The foregoing description of the Amendment and the waivers are qualified in their entirety by reference to the
full text of the Amendment and the waivers that are filed as Exhibits 10.1 and 10.2 hereto and are incorporated herein
by reference.
Item 9.01.
Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number
Description
10.1
Amended and Restated Performance award Agreement, dated March
11, 2009, between Allis-Chalmers Energy Inc. and Munawar H.
Hidayatallah.
10.2
Letter agreements dated March 9, 2009, by each of Munawar H.
Hidayatallah, Victor M. Perez, Theodore F. Pound III, David
Bryan, Terrence P. Keane and Mark Patterson.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.
ALLIS-CHALMERS ENERGY INC.
Date: March 12, 2009
By:
/s/ Theodore F. Pound III
Name: Theodore F. Pound III
Title: General Counsel and Secretary
EXHIBIT INDEX
Exhibit Number
Description
10.1
Amended and Restated Performance award Agreement, dated March
11, 2009, between Allis-Chalmers Energy Inc. and Munawar H.
Hidayatallah.
10.2
Letter agreements dated March 9, 2009, by each of Munawar H.
Hidayatallah, Victor M. Perez, Theodore F. Pound III, David
Bryan, Terrence P. Keane and Mark Patterson.