Financial thoughts

Key Energy Services Inc. is expanding into the Eastern Hemisphere with a $35 million investment in Moscow-based Geostream Services Group.

The purchase will give Houston-based Key Energy (NYSE: KEG) a 50 percent equity interest in Geostream.

Under the agreement, Key Energy can also purchase the other half of the oilfield services company at a future date.

“This investment is another step in our plan to expand Key’s international business,” said Dick Alario, Key chairman and chief executive officer creditreports. “The Russian market is one of the fastest growing oilfield services markets in the world. “

The capital infusion will go toward purchasing equipment and expanding services.

The deal, which is contigent upon Russian Federation approval, will happen in two parts, with $18 million upon approval and another $17 million in the first quarter of 2009.

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