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S-4/A
KEY ENERGY SERVICES INC filed this Form S-4/A on 03/08/1996
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(4)  Investments in Unconsolidated Well Servicing Operations -

         The following is a summary of WellTech's  net investment and the equity
in  the  earnings  (losses)  of  its  unconsolidated   investments  (amounts  in
thousands):


<TABLE>
<CAPTION>


                                 Ownership           Net Investment   Equity in Earnings (Losses)
                                  Percent          1994         1993        1994           1993
<S>                                <C>        <C>             <C>        <C>            <C>   

Dawson WellTech, LLC                39%        $ 6,511         $4,899     $   620        $  711
Key Energy Group, Inc.              24%          8,401              -          47             -
Servicios WellTech, S.A.            50%          2,727          1,906      (1,159)         (623)
                                                 -----          -----      ------          -----
                                               $17,639         $6,805     $ ( 492)       $   88
                                               =======         ======     =========      =======
</TABLE>


         Dawson WellTech,  LLC - Effective November 1, 1992, WellTech and Dawson
Well Servicing,  Inc. formed Dawson WellTech,  LLC ("DWT"),  a limited liability
corporation.  The net book value of the assets contributed  exceeded  WellTech's
share of DWT's net assets at  inception  by $1.1  million.  This amount is being
amortized and charged  against  equity in earnings of DWT over a period of eight
years.

         In January 1995,  WellTech  contributed  an additional  $1.4 million in
cash to  finance  its  share  of the  non-bank  financed  portion  of the  stock
acquisition of Well Solutions, Inc. by DWT for $20 million. Well Solutions, Inc.
is a regional  company  providing  vacuum  truck,  frac tank,  disposal well and
production  testing and rental tool services in Texas.  The  agreement  with the
bank  which  provided  the  financing  for  this  acquisition,  limits  the cash
distributions  from DWT to an amount  equal to  income  before  taxes  times the
statutory tax rate.

         DWT  has  a  fiscal  year  ended  March  31.  The  condensed  financial
information  presented below as of December 31, 1994 and 1993 and for the twelve
month periods then ended is unaudited.  The summary information  presented below
as of March 31, 1995 and 1994 and for the twelve  month  periods  then ended has
been  derived  from  audited  financial  statements.  As stated  above,  DWT was
established  in  November  of 1992.  Its  results of  operations  did not have a
material effect on WellTech's  results of operations for the year ended December
31, 1992. Therefore,  condensed financial information has not been presented for
that period.

                                      F-46