Key Energy Services Provides August 2010 Activity Data

HOUSTON, Sept. 13 /PRNewswire/ -- Key Energy Services, Inc. (NYSE: KEG) total rig hours during August 2010 were up 5.8% compared to July 2010.  

Additional comparable information for prior monthly periods is available on Key's website at www.keyenergy.com under "Investor Relations".

Chairman, President, and CEO, Dick Alario, commented, "Activity in the U.S. continues to improve, and our rig business continues to experience a favorable shift in the mix of work performed for our larger customers.  Also, the U.S. pricing environment remains positive --- more so in certain markets and to some degree dependent on the type of work performed."

Alario continued, "Reported international rig hours were down slightly in August compared to July, primarily as a result of job mix and timing.  As previously discussed, we began to relocate equipment into Colombia from Mexico during the second quarter.  Last week, Key Colombia was awarded a $25 million two-year contract for two service rigs equipped with our patented KeyView® system.  In addition, we received a commitment for another KeyView® system equipped rig from the same customer with a similar workscope.  We expect all three rigs to be working by the end of October."

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Any matters that are not of historic fact are forward-looking statements. These forward-looking statements are based on Key's current expectations, estimates and projections, 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 affecting activity levels for Key's services, including the impact of any decline or volatility of oil and natural gas commodity prices, future decreases or other changes in the capital budgets of Key's customers, and the impact of activity levels generally not continuing to recover from the recent economic downturn, or even decreasing again, among Key's customers; risks affecting pricing for Key's services, including the risk that Key may be unable to achieve future pricing improvements for its services; risks affecting Key's foreign operations and investments, including the risk that Key may be unable to successfully commence its planned operations in Colombia; and risks affecting Key's ability to maintain or improve operations generally, including weather risk.

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

713-651-4434

SOURCE Key Energy Services, Inc.