Production Enhancement Group, Inc.

June 09, 2009 14:12 ET

Production Enhancement Group Announces Related Party Transaction

HOUSTON, TEXAS--(Marketwire - June 9, 2009) - Production Enhancement Group, Inc. ("PEG" or the "Company") today announced it completed a USD $100,000 tranche of 8% Secured Convertible Debentures (the "Debentures") by way of a private placement to Quest Energy Services (Canada) Ltd. which holds 83% of the Company's shares and is a related party transaction under MI 61-101, but is exempt from the valuation and minority approval requirements due to financial hardship. Proceeds will be used for working capital and to resolve creditor claims so PEG can explore its options. PEG shares were suspended on the TSX and will be delisted July 3, 2009 for failure to meet the continued listing requirements of the TSX because of enforcement steps by its senior lender.

Contact Information

  • Production Enhancement Group, Inc.
    Douglas Parker
    Chief Financial Officer
    (713) 806-3048