Key Energy Services Announces Acquisition
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HOUSTON, Dec. 10 -- Key Energy Services, Inc. (NYSE:KEG) announced today that it has acquired the well service assets of Kings Oil Tools. The acquired assets, which are located in California, include 36 marketed well service rigs, 10 stacked well service rigs and related support equipment. Management anticipates that the acquired assets will contribute revenue of approximately $36 million in 2008. Total consideration paid for the transaction was approximately $45 million in cash.
Commenting on the acquisition, Dick Alario, Key's Chairman and CEO, stated, "We are excited to expand our presence in California, which today is Key's best performing division. The region is essentially all oil production and thus, has been stable for the last several years. We believe the acquired well service rig assets will allow us to better meet the needs of our California customer base."
Key Energy Services, Inc. is the world's largest rig-based well service company. The Company provides oilfield services including well servicing, pressure pumping, fishing and rental tools, electric wireline and other oilfield services. The Company has operations in all major onshore oil and gas producing regions of the continental United States and internationally in Argentina and Mexico.
Source: Key Energy Services, Inc.
CONTACT:
John Daniel of Key Energy Services, Inc.
+1-713-651-4300
Web site: http://www.keyenergy.com/
