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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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                       BUSINESS AND PROPERTIES OF WELLTECH

General


        WellTech provides a broad range of workover and production  services for
oil and gas wells in Oklahoma, Texas, Michigan,  Pennsylvania and West Virginia.
WellTech is engaged in the business of  providing:  (i)  workover rig  services,
including  completion of new wells,  maintenance  and  recompletion  of existing
wells (including horizontal recompletions) and plugging and abandonment of wells
at the end of their useful lives; (ii) oil field liquid transportation,  storage
and disposal  services,  including  vacuum truck services,  frac tank rental and
salt water injection; and (iii) other services,  including pipeline installation
and testing,  slickline wireline services,  fishing and rental tool services and
general oil field roustabout services. WellTech's services are utilized by major
oil and gas companies as well as independent  producers to optimize  performance
of oil and gas wells. In addition to its domestic operations,  WellTech provides
equipment and services in Argentina and, until November 1995,  conducted certain
operations  in Russia.  For the ten months  ended  October  31,  1995,  WellTech
derived  approximately  65%, 9% and 26% of its  revenues  from its  workover rig
services, liquid services and other services, respectively.


        WellTech  was  established  in 1973  as a well  servicing  business.  It
undertook significant  expansion activities  principally through internal growth
and the  acquisition  of well  servicing  assets in  diverse  geographic  areas.
Commencing in 1992,  WellTech  consolidated  its operations in those  geographic
areas where it believed it could be the dominant or a significant  factor in the
well  servicing  business  and  could  realize   consolidation  savings  through
operation of a greater  number of rigs with lower  management and overhead costs
per rig operated.  In addition to expanding  its workover rig service  business,
WellTech entered into complimentary businesses thereby increasing its asset base
and market share  through  diversification  by service  line.  At the same time,
WellTech commenced to withdraw operations from less profitable  geographic areas
where lower costs could not be realized.

        WellTech  believes  that its  ability to offer a wide range of  services
provides  it  with  a  competitive   advantage  by  allowing  its  customers  to
consolidate  with fewer  vendors  the  procurement  of workover  and  production
services.  Customers  may thereby lower their costs by  streamlining  production
decisions and increasing  operational  efficiencies.  WellTech  believes that no
single  competitor  in  WellTech's  primary  market  areas  provides  a range of
services as extensive as the services  provided by WellTech.  WellTech  believes
that its strategy  creates  cross-marketing  opportunities  for its services and
appeals to a broader  customer  base by  enhancing  its  position  as a one-step
source for workover and production services.

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