FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * Sauers Bruce   2. Issuer Name and Ticker or Trading Symbol Allis Chalmers Energy Inc. [ALY] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) V. Pres. & Chief Acct. Officer (Last) (First) (Middle) 5075 WESTHEIMER, #890 3. Date of Earliest Transaction (Month/Day/Year) 02/23/2011 (Street) HOUSTON, TX 77056 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 02/23/2011   F   5,263 (1) D (1) 47,188 D   Common Stock 02/23/2011   D   47,188 (2) D (2) 0 D

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Employee Stock Option (right to buy)

$ 10.85

02/23/2011

D

8,333

(3)

12/16/2015

Common Stock

8,333

(3)

0

D

Employee Stock Option (right to buy)

$ 1.23

02/23/2011

D

7,500

(4)

03/05/2019

Common Stock

7,500

(4)

0

D

Employee Stock Option (right to buy)

$ 3.77

02/23/2011

D

22,000

(5)

03/03/2020

Common Stock

22,000

(5)

0

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
Sauers Bruce 5075 WESTHEIMER, #890 HOUSTON, TX 77056			V. Pres. & Chief Acct. Officer

Signatures

/s/ Theodore F. Pound III through POA		02/25/2011
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	These shares were withheld to satisfy tax obligations in connection with the vesting of 19,900 shares of restricted stock.
(2)	These shares were disposed of pursuant to an Agreement and Plan of Merger among the Issuer, Seawell Limited and Wellco Sub Company, a wholly-owned subsidiary of Seawell Limited, dated August 12, 2010, as amended. The Reporting Person received 1.15 shares of Seawell Limited common stock for each share of Allis-Chalmers common stock owned.
(3)	These options vested on December 16, 2008 and were assumed by Seawell Limited in the merger and replaced with an option to purchase 9,582 shares of Seawell Limited common shares at $9.43 per share.
(4)	This option, which provided for the vesting of 20% on March 5, 2010, 20% on March 5, 2011, and 60% on March 5, 2012 was assumed by Seawell Limited in the merger and replaced with an option to purchase 8,625 shares of Seawell Limited common shares at $1.07 per share.
(5)	This option, which provided vesting in five equal installments beginning March 3, 2011, was assumed by Seawell Limited in the merger and replaced with an option to purchase 25,300 shares of Seawell Limited common shares at $3.28 per share.

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