X0202 4 2005-12-16 0000003982 Allis Chalmers Energy Inc. ALY 0001140824 HIDAYATALLAH MUNAWAR H 5075 WESTHEIMER, SUITE 890 HOUSTON, TX 77056 1 1 0 0 Chairman and CEO Option to Purchase Common Stock 10.85 2005-12-16 4 A 0 125000 0 A 2015-12-16 Common Stock, par value $.01 per share 125000 125000 D The option is exercisable (a) immediately with respect to 41,667 shares, (b) on December 16, 2006 with respect to 41,667shares, and (c) on December 16, 2007 with respect to 41,666 shares. Grant under employee stock option plan. /s/ Munawar H. Hidayatallah 2006-01-19