X0202 4 2005-12-16 0000003982 Allis Chalmers Energy Inc. ALY 0001304242 Pound Ted 5075 WESTHEIMER, SUITE 890 HOUSTON, TX 77056 0 1 0 0 General Counsel Option to Purchase Common Stock 10.85 2005-12-16 4 A 0 50000 0 A 2015-12-16 Common Stock, par value $.01 per share 50000 50000 D The option is exercisable (a) immediately with respect to 16,667 shares, (b) on December 16, 2006 with respect to 16,667 shares, and (c) on December 16, 2007 with respect to 16,666 shares. Grant under employee stock option plan. /s/ Theodore F. Pound III 2006-01-19