Report of Independent Accountants
To The Board of Directors
Key Energy Group, Inc.
We have audited the accompanying consolidated statements of operations,
stockholders' equity (deficit) and cash flows of Key Energy Group, Inc. and
Subsidiaries for the seven months ended June 30, 1993 and the five months ended
November 30, 1992. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
As discussed in Notes 1 and 3 to the consolidated financial statements, the
Company emerged from bankruptcy on December 4, 1992. The reorganization was
accounted for as of November 30, 1992, at which time Key adopted "fresh start
reporting". As a result, the Company's consolidated financial statements for the
seven months ended June 30, 1993 representing the consolidated results of
operation of the reorganized entity are not comparable to the Company's
consolidated financial statements for the five months ended November 30, 1992.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated results of operations and cash flows of
Key Energy Group, Inc. and Subsidiaries for the seven months ended June 30, 1993
and the five months ended November 30, 1992 in conformity with generally
accepted accounting principles.
Coopers & Lybrand
September 7, 1993