Key Energy Services Provides March 2010 Activity Data; Update on its Mexico Activity; and First Quarter 2010 Conference Call Information

HOUSTON, April 13 /PRNewswire-FirstCall/ -- Key Energy Services, Inc. (NYSE: KEG) March 2010 total rig hours increased 16%, and trucking hours increased 21% over the previous month. Hourly activity levels for the month of March 2010 and comparable periods are as follows:

Comparable 2009 and 2008 monthly information is available on Key's website at www.keyenergy.com under "Investor Relations."

Chairman, President and CEO Dick Alario commented, "Favorable trends in activity and customer mix continued into March and, combined with more days available to work, drove a 20% increase in our U.S. rig service hours compared to February. As the market improves and conditions continue to tighten, we have become more deliberate about improving pricing for our domestic services."

Alario continued, "Total international hours were up 3% month over month driven by increases in Argentina and Russia. Activity in Mexico declined 2% during March, and Key's first contract with PEMEX covering 14 workover rigs in the ATG area (Chicontepec field) expired at the end of the first quarter. At PEMEX's request, we are presently relocating three of these service rigs to work outside the ATG area, and we anticipate additional rigs will be requested to provide workover services both within and outside the ATG area. We believe that workover and maintenance activities are critical for PEMEX as they work to efficiently improve production, especially given the reduced drilling activity in the ATG area."

FIRST QUARTER CONFERENCE CALL

The company will hold a conference call to discuss its first quarter 2010 financial results on Thursday, April 29, 2010 at 11:00 a.m. CDT. To access the call in the U.S. and Canada please dial 888-794-4637 and ask for the "Key Energy Services Conference Call" or provide the access code 69179857. International callers should dial 660-422-4879. The conference call will also be available live via the internet. To access the webcast, go to www.keyenergy.com and select "Investor Relations". A replay of the conference call will be available on Thursday, April 29, 2010, beginning at 2:00 p.m. CDT and will remain available for one week. To access the replay, please call 800-642-1687. The access code for the replay is 69179857.

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 declines or instability of commodity prices, future decreases or other changes in the capital budgets of customers, the impact of activity levels not recovering, or even decreasing in the future, among Key's larger customers, changes in the demand for the mix of services that Key provides and Key's ability to improve or maintain pricing on its services; risks associated with the prolonged economic downturn and credit market instability; risks affecting Key's foreign operations and investments, including its work in Mexico, which is performed under its remaining contract that expires in 2010, which may not be renewed; and risks affecting Key's ability to maintain or improve operations, including its ability to maintain prices for services under increasing pricing pressures, the impact of rig capacity in the market and 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.