Exhibit 99.1

FOR IMMEDIATE RELEASE

Key Energy Services Generated Second Quarter 2012 Earnings from

Continuing Operations of $0.21 per Diluted Share

HOUSTON, TX, July 26, 2012 – Key Energy Services, Inc. (NYSE: KEG) generated second quarter 2012 income from continuing operations of $31.5 million, or $0.21 per share, compared to first quarter 2012 income from continuing operations of $34.1 million, or $0.23 per share.

Revenue for the second quarter 2012 was $516.0 million, up 6.0% compared to the first quarter 2012 revenue of $486.8 million.

During the first quarter of 2012, Key announced its intention to sell its Argentine operations. As a result, this business has been classified as discontinued operations, and the second quarter 2012 and prior comparable periods reflect this change.

Second quarter 2012 consolidated net income was $29.0 million, or $0.19 per share, which includes a loss from discontinued operations of $2.5 million, or $0.02 per share, compared to first quarter 2012 consolidated net income of $3.2 million, or $0.02 per share, which includes a loss from discontinued operations of $30.9 million, or $0.21 per share.

The following table sets forth summary data from continuing operations for the second quarter 2012 and prior comparable quarterly periods.

U.S. Segment

Second quarter 2012 U.S. revenue was $431.6 million, up 1.6% compared to $425.0 million in the first quarter. Operating income was $82.5 million, or 19.1% of revenue, compared to $91.5 million, or 21.5% of revenue, in the first quarter. Results were burdened by expansion costs ahead of anticipated activity gains in oil markets in addition to the continued decline in earnings from gas markets.

International Segment

Second quarter 2012 international revenue was $84.4 million, up 36.5% compared to first quarter 2012 revenue of $61.8 million. Operating income was $16.1 million, or 19.1% of revenue, compared to first quarter 2012 operating income of $10.4 million, or 16.8% of revenue. The revenue and margin improvement was driven primarily by higher activity in Mexico.

General and Administrative Expenses

General and Administrative (G&A) expenses were $58.1 million, or 11.3% of revenue, compared to first quarter 2012 G&A expenses of $60.9 million, or 12.5% of revenue.

Capital Expenditures and Liquidity

Key’s consolidated cash balance at June 30, 2012 was $28.3 million compared to $31.9 million at March 31, 2012. Capital expenditures were $139.9 million during the second quarter 2012 and $309.3 million through June 30, 2012. Total debt at June 30, 2012 was $874.5 million compared to total debt of $865.1 million at March 31, 2012. At the end of the quarter, there was $190.0 million utilized under the Company’s $550 million senior secured credit facility. Net debt to total capitalization at the end of the second quarter 2012 was 39.9%.

Overview and Outlook

Commenting on the results, Key’s Chairman, President and Chief Executive Officer, Dick Alario, stated, “In the U.S., customer demand in natural gas markets has continued to weaken, but recent indications suggest a stabilizing trend. Demand in oil markets remains favorable. However, activity growth has tempered as oil prices declined last quarter, and oilfield service capacity has become more concentrated in those markets.

“In our coiled tubing business, we essentially reversed half of the revenue and margin decline witnessed in the first quarter with results that improved as the quarter progressed. We believe improvement will continue as we further increase asset utilization in the coming quarters.

“Internationally, our second quarter results improved considerably driven primarily by the full deployment of assets in Mexico where demand for our services continues to grow.”

Alario continued, “For the third quarter, we anticipate continued improvement in operating efficiencies in our coiled tubing business, additional growth and fixed cost absorption as we continue to expand our Edge business into oil markets, and further activity gains in our international markets. We believe these trends will lead consolidated revenue to increase roughly 4% from the second quarter and drive a 20% to 25% increase in operating income. In the fourth quarter, we expect a continuation of these trends, offset somewhat by typical seasonal declines, leading to consolidated results roughly flat with the third quarter. We’ll have additional guidance commentary on our conference call.”

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Conference Call Information

As previously announced, Key management will host a conference call to discuss its second quarter 2012 financial results on Friday, July 27, 2012 at 10:00 a.m. CDT. To access the call in the U.S. and Canada dial 888-794-4637. International callers should dial 660-422-4879. All callers should ask for the “Key Energy Services Conference Call” or provide the access code 91746711. The conference call will also be available live via the internet. To access the webcast, go to www.keyenergy.com and select “Investor Relations.”

A telephonic replay of the conference call will be available on Friday, July 27, 2012, beginning approximately two hours after the completion of the conference call and will remain available for one week. To access the replay, call 855-859-2056 or 800-585-8367. The access code for the replay is 91746711. The replay will also be accessible at www.keyenergy.com under “Investor Relations” for a period of at least 90 days.

Re-casted Prior Period Financial Results from Continuing Operations

Key has recast certain prior period financial information to reflect its results from continuing operations, which exclude the Argentine operations. This recasted financial information is available on Key’s website at www.keyenergy.com under “Investor Relations”.

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		July 26, 2012

Consolidated Statements of Operations (in thousands, except per share amounts, unaudited):

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Condensed Consolidated Balance Sheets (in thousands, unaudited):

Consolidated Cash Flow Data (in thousands, unaudited):

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U.S. and International Revenue and Operating Income (Loss) (in thousands, except for percentages, unaudited):

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Following is a reconciliation of income or loss from continuing operations attributable to Key as presented in accordance with United States generally accepted accounting principles (GAAP) to EBITDA from continuing operations and Adjusted EBITDA from continuing operations (non-GAAP measures) as required under Regulation G of the Securities Exchange Act of 1934.

Reconciliations of EBITDA from continuing operations and Adjusted EBITDA from continuing operations (in thousands, except for percentages, unaudited):

“EBITDA” is defined as income or loss from continuing operations attributable to Key before interest, taxes, depreciation, and amortization.

“Adjusted EBITDA” is EBITDA as further adjusted for certain non-recurring or extraordinary items such as asset retirements and impairments, loss on debt extinguishment, certain other gains or losses, and certain non-recurring transaction or other costs.

“EBITDA” and “Adjusted EBITDA” are non-GAAP measures that are used as supplemental financial measures by the Company’s management and directors and by external users of the Company’s financial statements, such as investors, to assess:

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EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered alternatives to net income, operating income, cash flow from operating activities, or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income and these measures may vary among other companies. Limitations to using EBITDA and Adjusted EBITDA as analytical tools include:

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Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements as to matters that are not of historic fact are forward-looking statements. These forward-looking statements are based on Key’s current expectations, estimates and projections about Key, its industry, its management’s beliefs and certain assumptions made by management, and include statements regarding estimated capital expenditures, future operational expectations, expected increases in activity, the mobilization of equipment into service, international growth, and anticipated financial performance in 2012. No assurance can be given that such expectations, estimates or projections will prove to have been correct. Whenever possible, these “forward-looking statements” are identified by words such as “expects,” “believes,” “anticipates” and similar phrases.

Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict, including, but not limited to: risks that Key will be unable to achieve its financial, capital expenditure and operational projections, including quarterly and annual projections of revenue and/or operating income margins (whether for Key as a whole or for geographic regions and/or business segments individually), which projections are based on uncertain customer activity, pricing and spending levels as well as uncertain short-term and long-term expectations of both U.S. and international market conditions, including in the oil, liquid shale and natural gas markets; risks that market fundamentals in the U.S. could further deteriorate or worsen beyond current expectations and/or that Key could experience further unexpected declines in activity and demand for its rig service, fluid management service, coiled tubing service, and fishing and rental service businesses; risks relating to changes in the demand for or the price of oil and natural gas; risks relating to increases in costs of labor, fuel, equipment and supplies employed and used in Key’s businesses; risks relating to Key’s ability to implement technological developments and enhancements; risks relating to compliance with environmental, health and safety laws and regulations, as well as actions by governmental and regulatory authorities; risks that Key may be unable to achieve the benefits expected from acquisition transactions, and risks associated with integration of the acquired operations into Key’s operations; risks affecting Key’s foreign operations, including risks related to growth in Mexico, other risks affecting Key’s operations in Russia, risks associated with expanding operations in Colombia, Oman and Bahrain, risks involving the possible sale of its Argentina business and assets, and risks that Key may not be able to achieve its overall international growth and mobilization strategy; risks that Key may not be able to execute its capital expenditure program and/or that any such capital expenditure investments, if made, will not generate adequate returns; and other risks affecting Key’s ability to maintain or improve operations, including its ability to maintain prices for services under market pricing pressures, weather risks, and the impact of potential increases in general and administrative expenses.

Because such statements involve risks and uncertainties, many of which are outside of Key’s control, Key’s actual results and performance may differ materially from the results expressed or implied by such forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Other important risk factors that may affect Key’s business, results of operations and financial position are discussed in its most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and in other Securities and Exchange Commission filings. Unless otherwise required by law, Key also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. However, readers should review carefully reports and documents that Key files periodically with the Securities and Exchange Commission.

About Key Energy Services

Key Energy Services is the largest onshore, rig-based well servicing contractor based on the number of rigs owned. Key provides a complete range of well intervention services and has operations in all major onshore oil and gas producing regions of the continental United States and internationally in Mexico, Colombia, the Middle East and Russia.

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