EXHIBIT 99.1



For Immediate Release:                                      Contact: John Daniel
Friday, July 19, 2002                                       (215) 862-7900


           KEY ENERGY ANNOUNCES COMPLETION OF Q SERVICES ACQUISITION

MIDLAND, TX, JULY 19, 2002 - Key Energy Services, Inc. (NYSE: KEG) announced
that it will complete the acquisition of Q Services, Inc. of Houston, Texas
today. Q Services was one of the largest privately held production services
companies in the United States, with operations in Texas, Louisiana, Oklahoma,
New Mexico, and the Gulf of Mexico. In connection with the acquisition, the
Company will issue approximately 17.2 million shares of common stock and assume
approximately $75 million in debt (which was paid off at the closing) and net
working capital. The total consideration to be paid will be approximately $221
million, as compared to the previously announced $265 million plus net working
capital.

      As Key and Q Services operate in adjacent and/or overlapping locations,
the Company expects to realize at least $10 million in annual cost savings and
synergies in connection with the merger. The combined companies will have
approximately $1.5 billion in assets and will operate the largest oilfield
trucking fleet in the U.S. to complement the Company's well service rig fleet,
which is the largest in the world. The Company expects the acquisition to be
immediately accretive to earnings and cash flow. Q Services' fishing and rental
tool and pressure pumping operations provide the Company with the ability to
expand the range of services it offers at the well site.

      Francis D. John, the Company's Chairman and CEO, stated, "The Key Energy/Q
Services combination will transition Key into a full production services
company. With our combined 150 locations in all of the domestic oil and gas
basins in the lower 48 and nearly 9,000 employees, the Company has the most
comprehensive distribution network for oil and gas production services. The
Company is now exceptionally well positioned to grow organically through adding
additional services to our vast geographic presence while at the same time
continuing to exercise financial discipline through reducing debt and
strengthening the balance sheet. We are highly confident of the cost savings and
operating efficiencies that will result from the combination. We expect to
complete a majority of the cost savings and integration initiatives by December
31, 2002.

      KEY ENERGY SERVICES IS THE WORLD'S LARGEST WELL SERVICE COMPANY AND OWNS
APPROXIMATELY 1,478 WELL SERVICE RIGS AND 2,050 OILFIELD SERVICE VEHICLES, AS
WELL AS 79 DRILLING RIGS. THE COMPANY PROVIDES DIVERSIFIED ENERGY OPERATIONS
INCLUDING WELL SERVICING, CONTRACT DRILLING AND OTHER OILFIELD SERVICES AND OIL
AND NATURAL GAS PRODUCTION. THE COMPANY HAS OPERATIONS IN ALL MAJOR ONSHORE OIL
AND GAS PRODUCING REGIONS OF THE CONTINENTAL UNITED STATES AND IN ARGENTINA AND
ONTARIO, CANADA.



      CERTAIN COMMENTS CONTAINED IN THIS NEWS RELEASE CONCERNING THE BUSINESS
OUTLOOK AND ANTICIPATED FINANCIAL RESULTS OF THE COMPANY CONSTITUTE
"FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995 AND ARE SUBJECT TO THE SAFE HARBOR CREATED BY THAT
ACT. WHENEVER POSSIBLE, THE COMPANY HAS IDENTIFIED THESE "FORWARD-LOOKING
STATEMENTS" BY WORDS SUCH AS "EXPECTS", '"BELIEVES", "ANTICIPATES" AND SIMILAR
PHRASES. THE FORWARD-LOOKING STATEMENTS ARE BASED UPON MANAGEMENT'S EXPECTATIONS
AND BELIEFS AND, ALTHOUGH THESE STATEMENTS ARE BASED UPON REASONABLE
ASSUMPTIONS, THERE CAN BE NO ASSURANCES THAT THE FINANCIAL RESULTS OR COMPONENTS
WILL BE AS ESTIMATED. THE COMPANY ASSUMES NO OBLIGATION TO UPDATE PUBLICLY ANY
FORWARD-LOOKING STATEMENTS WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS
OR OTHERWISE.