Key Energy Group Inc. announced Tuesday that it has signed adefinitive merger agreement to acquire Dawson Production Servicesfor an estimated $352 million. The terms of the agreement call forKey Energy to purchase 11.5 million outstanding shares of Dawsoncommon stock for a total of $202 million, and to assume Dawson’sexisting debt of $150 million.

Key Energy, headquartered in East Brunswick, NJ, is a holdingcompany with diversified energy operations, including wellservicing, oil field services, contract drilling and oil and gasproduction. Dawson Production of San Antonio, TX, provides workoverrig services, liquid services, and production services to oil andgas operators.

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