Key Energy Releases December Rig Hours

HOUSTON, Jan. 17  /PRNewswire-FirstCall/ -- Key Energy Services, Inc. (Pink Sheets: KEGS) announced today its rig and trucking hours for the month December 2006.

Operations Update

Rig hours in recent weeks indicate that activity in oil markets is strong while activity in certain gas markets, notably the San Juan Basin and South Texas, has moderated.  Demand for the Company's pressure pumping services remains strong.

                              OPERATING DATA

                                        For the month ending

                          December 31,       November 30,       December 31,
                             2006                2006                2005
  Working Days                   19                  20                 20
  Rig Hours                 201,704             202,620            209,648
  Trucking Hours            185,330             188,965            194,498



The Company calculates working days as total weekdays for the month less any company holidays that occur that month. For the month of January 2007, there are 22 working days.

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 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; 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 risks; risks associated with technology investments and the receptiveness of customers to the new technology investments; risks that the Company will be unable to achieve budgeted financial targets and potential impact on operations of the Company's ongoing process to complete 2004, 2005 and 2006 financial statements.  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

[phone] 

DATASOURCE: Key Energy Services, Inc.



CONTACT:  John Daniel of Key Energy Services, Inc., [phone]



Web site:  http://www.keyenergy.com/

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