X0303 4 2009-01-26 0 0000003982 Allis Chalmers Energy Inc. ALY 0001140824 HIDAYATALLAH MUNAWAR H 5075 WESTHEIMER, SUITE 890 HOUSTON TX 77056 1 1 0 0 Chairman and CEO Common Stock 2009-01-26 4 S 0 20000 3.825 D 820905 I By Hidayatallah Family Trust Common Stock 2009-01-27 4 S 0 20000 3.6972 D 800905 I By Hidayatallah Family Trust Common Stock 8000 I By Munawar Hidayatallah SEP IRA The Reporting Person filed a Form 144 on January 21, 2009 providing notice of the intent to sell 150,000 shares of common stock. The Reporting Person is proposing to sell these shares to meet margin calls and has received a hardship exemption for the sale of these shares under the Issuer's Insider Trading Policy. The sale of 40,000 shares being reported on this Form 4, together with the Reporting Person's sale of 13,000 shares on January 21, 2009, represent a portion of the 150,000 shares proposed to be sold on the Reporting Person's Form 144. The Reporting Person will continue to sell shares as needed to meet ongoing margin calls and may or may not be required to sell the entire 150,000 shares. Represents the average price of the Reporting Person's disposition of 20,000 shares in 2 separate transactions ranging from $3.80 to $3.85 per share. The Issuer undertakes to provide upon request by the SEC staff, or a security holder of the Issuer, full information regarding the number of shares purchased or sold at each separate price. Represents the average price of the Reporting Person's disposition of 20,000 shares in 13 separate transactions ranging from $3.68 to $3.77 per share. The Issuer undertakes to provide upon request by the SEC staff, or a security holder of the Issuer, full information regarding the number of shares purchased or sold at each separate price. /s/ Munawar H. Hidayatallah 2009-01-28