Key Bags $46MM Workover Contract from Pemex

Key Energy Services, Inc. announced that its Mexican subsidiary, Key Energy Services de Mexico S. de R.L. de C.V., has been awarded a 24-month contract valued at $68 million by Pemex to provide field production solutions and well workover products and services.

The new project will cover Pemex' North Region assets and will initially focus on oil wells in the Poza Rica-Altamira and Cerro Azul assets. Under the terms of the contract, Key will initially provide four well service rigs outfitted with its proprietary KeyView system and will install five KeyView systems on Pemex-owned well service rigs. The contract grants Pemex the option to call for additional rigs and KeyView systems in the future. This work is in addition to the $46 million Pemex contract awarded to Key in early 2007. Key currently has nine rigs working for Pemex.

Dick Alario, Key's Chairman and CEO, stated, "We are proud of the working relationship we have established with Pemex over the last 18 months and look forward to providing even more well workover services to Pemex. Our work in Mexico demonstrates Key's ongoing commitment to quality and safety, as well as our determination to provide Pemex with the most technologically advanced well service solutions available to the industry."

Alario continued, "We are in discussions with other international operators about our proprietary KeyView system and believe that our technology, combined with our workover expertise, is of great value to international operators like Pemex."