Competition and Other External Factors
The need for oil field services fluctuates, in part, from the demand
for oil and natural gas. As demand for those commodities increases, service and
maintenance requirements increase. Yale E. Key competes with other local oil
field service companies as well as national service companies. Yale E. Key
believes it is the largest oil well service company in West Texas (based on
number of workover rigs and employees). Key believes that the reputation that
Yale E. Key (including its predecessors) has developed over its 48 years in oil
field service operations contributes greatly to its competitive position.
Odessa Exploration acquires various oil and gas properties by
purchasing them from independent and major oil companies and competes with other
independent and integrated oil companies for the acquisition of these
Clint Hurt competes with other local oil and gas drilling contractors,
as well as national oil and gas drilling companies. As with Yale E. Key, the
need for drilling oil and gas wells fluctuates, in part, from the demand for oil
and natural gas.
Key leases approximately 1,500 square feet for its principal executive
offices in New Brunswick, New Jersey.
The following table sets forth information with respect to Yale E.
Key's operating facilities at December 31, 1995, all of which were used in the
operations of Yale E. Key and are located in Texas, including those acquired in
August of 1994 as part of the WellTech West Texas acquisition.
Location Square Footage Interest
Lamesa 3,350 Fee
Midland 18,250 Fee
Odessa 10,000 Fee
Seminole 12,500 Fee
Big Lake 3,500 Fee
Odessa * 10,000 Fee
Snyder * 10,000 Fee
Kermit * 7,000 Fee
Forsan * 10,000 Fee
Big Lake * 8,000 Lease
Sterling City 1,400 Lease
Andrews * 5,000 Lease
* Former WellTech locations.