Print Page  Close Window

SEC Filings

KEY ENERGY SERVICES INC filed this Form S-4/A on 03/08/1996
Entire Document

                    Producing Wells
                   Oil                      Gas             Developed Acreage
              Gross      Net      Gross       Net         Gross          Net

                 75       42       15          5        21,320          11,037

In addition,  Odessa  Exploration  serves as operator of two injection wells. As
operator, Odessa Exploration receives fees from other working interest owners as
reimbursement  for the  general and  administrative  expenses  attendant  to the
operation of the wells.

         Odessa  Exploration's  oil and gas  properties  are subject to royalty,
overriding  royalty and other outstanding  interests  customary in the industry.
The  properties  are also subject to burdens such as liens incident to operating
agreements,  current taxes, development obligations under oil and gas leases and
other  encumbrances,  easements and restrictions.  Management  believes that the
existence  of such  burdens  does not  materially  detract from the value of its
leasehold interests.  Moreover,  certain of Odessa Exploration's  properties are
subject to liens securing debt.  See Note 5 of Notes to  Consolidated  Financial
Statements of Key.

         Exploration and Development Activities. The following table shows gross
and net wells drilled in which Odessa Exploration had a working interest (all of
which were developed wells) during the years ended June 30, 1995 and 1994:

                             1995                  1994
                     ------------------      ----------------
                     Gross        Net       Gross         Net

    Productive        8.0         6.2        1.0           0.1
    Dry                -           -          -              -

Since  the  beginning  of  the  current  fiscal  year,  Odessa  Exploration  has
participated in or drilled five wells on its operated properties, and it expects
the total number of such wells for the current fiscal year to be 14.

         Oil and Gas  Reserve  Information.  Estimates  of Odessa  Exploration's
proved oil and gas  reserves as of June 30,  1995 and 1994 were  prepared by Key
and  reviewed by Victor J.  Sirgo,  P.E.,  an  independent  petroleum  reservoir
engineer.  All estimates were made in accordance with guidelines  established by
the  Commission.  Proved oil and gas reserves are the  estimated  quantities  of
crude oil and natural gas which geological and engineering data demonstrate with
reasonable  certainty to be  recoverable  in future years from known  reservoirs
under existing economic conditions, that is, prices and costs as of the date the
estimate is made.  Prices utilized reflect  consideration of changes in existing
prices provided by contractual arrangements if any, but not of escalations based
upon future conditions.

         Proved developed oil and gas reserves are reserves that can be expected
to be  recovered  through  existing  equipment  and  operating  methods.  Proved
undeveloped  oil and gas  reserves are proved  reserves  that are expected to be
recovered  from new wells on undrilled  acreage or from  existing  wells where a