HOUSTON, June 7 /PRNewswire-FirstCall/ -- Key Energy Services, Inc. (NYSE: KEG) acquired five large diameter coiled tubing units and associated equipment for approximately $13 million cash from privately-held Express Energy Services CT, LP (http://www.eeslp.com) effective June 1, 2010. All of the acquired units are less than four years old and are capable of running coiled tubing diameters up to 2.375 inches. The crews associated with these units were hired by Key, and the purchase also included additional equipment typically associated with coiled tubing spreads.
Key's Chairman, President and CEO, Dick Alario, stated: "We are glad to have this opportunity to add to our highly utilized coiled tubing fleet with these quality assets and people. We were impressed by Express' coiled tubing business and its people. We continue to look for ways to cost-effectively grow our service capabilities for our customers, particularly as we focus on our core well intervention services and grow our higher-end, high-pressure well intervention offerings that are in high demand. We welcome our new employees to the Key Energy Services team."
About Key Energy Services
Key Energy Services is the largest provider of onshore well service rigs in the world, based on current industry data. Key provides a complete range of well services, including rig-based well maintenance, workover, well completion and recompletion services, fluid management services, pressure pumping services, fishing and rental services, wireline services and ancillary oilfield services. Key has operations in all major onshore oil and gas producing regions of the continental United States and internationally in Argentina, Mexico and Russia. Additionally, Key has a technology development group based in Canada and ownership interests in two oilfield services companies in Canada.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These "forward-looking statements" are based on Key's current expectations, estimates and projections about Key, its industry, its management's beliefs and certain assumptions made by management. No assurance can be given that such expectations, estimates or projections will prove to have been correct. Whenever possible, these "forward-looking statements" are identified by words such as "expects," "believes," "anticipates" and similar phrases.
A number of factors could cause actual results to differ materially from the expectations, estimates and projections expressed in this press release, including, but not limited to: risks that Key will be unable to identify growth opportunities warranting additional capital expenditures and/or that such investments, including the recent acquisition of coiled tubing units, will generate adequate returns; risks that Key will be unable to identify or complete acquisitions and will be unable to successfully integrate acquired assets, operations and/or new employees; risks that Key will be unable to successfully expand its operations and service offerings, including its ability to successfully expand its higher-end, high-pressure well intervention services; and risks affecting Key's ability to maintain prices for services and manage market pricing pressures.
Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Other important risk factors that may affect Key's business, results of operations and financial position are discussed in its most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and in other Securities and Exchange Commission filings. Unless otherwise required by law, Key also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. However, readers should review carefully reports and documents that Key files periodically with the Securities and Exchange Commission.
Contact: Gary Russell
SOURCE Key Energy Services, Inc.