X0202 4 2005-12-16 0000003982 Allis Chalmers Energy Inc. ALY 0001252184 KEANE TERRENCE P 5075 WESTHEIMER, SUITE 890 HOUSTON, TX 77056 0 0 0 1 President of subsidiary Option to Purchase Common Stock 10.85 2005-12-16 4 A 0 25000 0 A 2015-12-16 Common Stock, par value $.01 per share 25000 25000 D The option is exercisable (a) immediately with respect to 8,334 shares, (b) on December 16, 2006 with respect to 8,333 shares, and (c) on December 16, 2007 with respect to 8,333 shares. Grant under employee stock option plan. /s/ Terrence P. Keane 2006-01-19