HOUSTON, Sept. 4 /PRNewswire-FirstCall/ -- Key Energy Services, Inc. (Pink Sheets: KEGS) announced today its selected financial data for the month of July 2007. In addition, the Company provided an update on its financial reporting status. Financial Reporting Update The Company is required under its Senior Credit Facility to file its Quarterly Reports on Form 10-Q for the March 2007 and June 2007 quarters by October 31, 2007. The Company presently believes that both Quarterly Reports will be filed on or before October 31, 2007. Once the March 2007 and June 2007 Quarterly Reports have been filed, the Company will be current with its financial reporting and can be relisted on a national stock exchange. The Company is presently in discussions with both the New York Stock Exchange and the NASDAQ. Selected Financial Data As previously reported, the Company's July activity levels reflected lower utilization levels associated with the July 4th holiday, new industry capacity and minor disruptions from a labor strike in our Argentina operation. The Company's July rig and trucking hours were previously released on August 13, 2007 in conjunction with our activity update conference call. The following selected financial information for the Company is as of and for the month ended July 31, 2007. This unaudited information has been prepared by management in accordance with generally accepted accounting principles. The selected financial data has not been reviewed or audited by the Company's independent accountants. The table does not contain all the financial statement line captions and notes that would be presented in the Company's Quarterly Report on Form 10-Q for the three and nine-months ended September 30, 2007. Month Ended July 31, 2007 Select Statement of Financial Data: (In thousands - Unaudited) Revenue: Well servicing $104,111 Pressure pumping 24,367 Fishing and rental services 8,866 TOTAL REVENUE $137,344 July 31, 2007 Select Balance Sheet Data: (In thousands - Unaudited) Current Assets: Cash and cash equivalents $ 65,390 Short term investments 110,562 The information herein represents the results for only one month and the information herein is not necessarily indicative of the results that may be reported for the quarter ended September 30, 2007 or for the fiscal year ended December 31, 2007. The information herein is select financial data and does not represent a complete set of financial statements, which would include additional financial data and notes to financial statements. 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. Certain statements contained in this news release constitute "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company, the Company's industry, management's beliefs and certain assumptions made by management. Whenever possible, the Company has identified these "forward-looking statements" by words such as "expects," "believes," "anticipates" and similar phrases. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict, including, but not limited to: risks that the Company will be unable to complete its new capital investment plan, including that it will be unable to complete acquisitions and integrate acquired operations and that it will be unable to obtain debt financing on acceptable terms and conditions in order to enable it to complete acquisitions or repurchase stock; possible legal consequences of failure to file compliant SEC filings for 2003, 2004 and 2005; risks that the Company will be unable to satisfy the requirements for re-listing on a national stock exchange or the timing thereof; the effect of on-going financial reporting and restatement-related expenses; possible additional tax liabilities as a result of the restatement of financial results; risks that the Company's efforts to remediate internal control and accounting deficiencies will not be effective; potential financial or other effects of on-going class action and derivative litigation; risks affecting the ability of the Company to maintain or improve operations, including the ability to maintain price increases, possible over supply of new rigs coming into the market and weather risk; and risks that the Company will be unable to achieve budgeted financial targets and risks affecting activity levels for rig hours including the risk that commodity prices decline or the risk that capital budgets from the Company's customers decrease. Readers should also refer to the section entitled "Risk Factors" in the 2006 Annual Report on Form 10-K for discussion of risks arising from the financial reporting process and other risks to which the Company is subject. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company 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 or documents the Company files periodically with the Securities and Exchange Commission. Contact: John Daniel (713) 651-4300 DATASOURCE: Key Energy Services, Inc. CONTACT: John Daniel of Key Energy Services, Inc., +1-713-651-4300 Web site: http://www.keyenergy.com/

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