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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: diana g who wrote (46271)	6/11/1999 9:16:00 AM
From: The Ox	Read Replies (1) \| Respond to of 95453

Key Energy Announces Management Changes; Discusses Improvement in Market Conditions EAST BRUNSWICK, N.J.--(BUSINESS WIRE)--June 11, 1999--Key Energy Services, Inc. (NYSE:KEG) announced today several senior management changes that will enable the company to continue its focus on reducing costs while responding to market changes. Francis D. John, the company's Chairman, President and Chief Executive Officer will also assume the role of Chief Operating Officer. In addition, the company has established a three-person operations committee to deal with day-to-day operations, develop ongoing plans to reduce costs, expand the quality and services provided to existing and new customers and, most significantly, improve employee and customer safety. The operations committee will consist of: (i) James Byerlotzer, who will become Executive Vice President of Domestic Well Service and Drilling Operations; (ii) Thomas K. Grundman, who will be appointed Executive Vice President and Chief Financial Officer and will oversee international operations; and (iii) D. Kirk Edwards, who will become Senior Vice President of Safety, Human Resources and Technology. Mr. John stated, "The company has cut over $20 million in operating costs during the last nine months. We will continue to operate as a low cost, decentralized organization. The company's operations have experienced a steady increase in rig utilization, revenues and EBITDA contribution each month since February. With the successfully completed $192 million equity offering and assuming a successful sale of Odessa Exploration, the company will have significantly strengthened its balance sheet and liquidity. While we believe that the oil and gas industry is improving, it will take several quarters of continued strong improvement before we experience the activity levels of late 1997 and early 1998." Mr. John added, "The new organizational structure is designed to enable senior management to focus intensely on operations and to maximize operating results as market conditions continue to improve. Jim Byerlotzer has extensive senior management well service experience with Pride Petroleum Services, Dawson Production Services and most recently with the company. Tom Grundman, who ran PNC Bank's oil and gas group and was previously with Chase Manhattan Bank, will replace Stephen E. McGregor as Chief Financial Officer. Steve played a significant role in assisting the company in implementing its acquisition and financing strategies. He will return to his home in Washington, D.C. and remain a consultant to the company. Kirk Edwards, who is currently President of Odessa Exploration, will assume responsibility for the company's human resource and safety programs, as well as developing technology improvement to provide better services and well-site information for our customers." Key Energy is the world's largest rig-based well servicing firm, owning approximately 1,420 well service rigs, 1,130 oilfield trucks and 75 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 Canada. CONTACT: Key Energy Services Inc., East Brunswick Jim Dean, 732/247-4822

To: diana g who wrote (46271)	6/11/1999 9:17:00 AM
From: Fitz	Respond to of 95453

News: () Pakistan price cut moves could delay gas projects By Saeed Azhar KARACHI, June 11 (Reuters) - The development of new natural gas finds in Pakistan could be delayed because of a government push for price cuts from producers, industry sources said on Friday. They said the government had indicated it wants to restructure prices and may change a 1994 petroleum policy which kept gas prices relative to the weighted average of the C&F price per barrel of a basket of imported crude oil grades. "Yes, they have given these overtures... The negotiations could delay the development of the new gas," said an official at one foreign exploration company. He said producers were already finding it difficult to finance new projects, adding that negotiations over price cuts had added to the problem. "The ministry (of petroleum and natural resources) is exploring different techniques to the extent that exploration companies agree on a framework for a price cut," another oil company executive said. The budget for the 1999/2000 fiscal year, which will be released on Saturday, could reveal the ministry's plans because it would show the funds available with the government for the oil and gas sector, he said. Industry officials said problem could emerge in the middle Indus region where recent finds are estimated at up to 3 trillion cubic feet (85 billion cubic metres). They said some of the concession blocks in Bhit, Zamzama and Miano located in the provinces of Sindh and Balochistan in Zone 111 could be developed in nine months to one year. Foreign companies involved in the region include LASMO <LSMR.L>, Austria's OMV <OMV.VI>, Australia's BHP <BHP.AX>, Premier <PMO.L>, Tullow <TLW.L> unit Tullow Pakistan Development Ltd and Union Texas <UTH.N>. The foreign company official said the policy gives the government the first option to purchase gas from producers in Zone 111. "It is an option not an obligation under the 1994 policy, but there is no other buyer," he said, adding the government wanted to cap prices at a certain level where a hike in oil prices does not trigger an increase the price it has to pay for gas. "Legally, they have the option (of not buying and seeking price cuts) but it is against the spirit of the policy," he said. Another industry official, who asked not to be named, said the gas producers would now give a "hard look at their money" in view of the request to renegotiate agreements. Pakistan's financial problems, which the government blames on sanctions imposed in the wake of its nuclear tests in May last year, and its fight with independent power producers over tariffs have already discouraged foreign investment, he said. Pakistan has potential gas reserves of up to nine trillion cubic feet (250 billion cubic metres) and industry analysts say $1 billion was required to develop the reserves. "What the government is not realising is the long-term effect on future investment," the official said. Industry sources say Pakistan's gas output totals two billion cubic feet a day, short of demand by 500 million cubic feet a day. Demand is also estimated to be growing by six percent a year. ((Karachi newsroom (9221) 5685192 Karachi.newsroom@reuters.com)) June 11, 1999 2:49am Source: Reuters

To: diana g who wrote (46271)	6/11/1999 9:25:00 AM
From: John Doyle	Read Replies (2) \| Respond to of 95453

Thanks- Both the CPI and the PPI numbers are being influenced by oil/energy prices which have been all over the board recently. The Fed's have to see this. I think it is a 50/50 chance that they will raise rates in two weeks. I guess they will REALLY look at the CPI data next week. That should be OK too, like the PPI. Everyone keeps talking about a Y2K economic shock. I am personally more worried about an oil shock. Now that would mean something to the markets, both stock and bond. When will that occur, who really knows, but I believe it will. Good luck to all in OSX land.