Production Enhancement Group, Inc.

Quest Energy Services (Canada) Ltd.

June 06, 2008 18:03 ET

Quest Energy Services (Canada) Ltd. and Production Enhancement Group, Inc. Complete Bid and Announce New Board of Directors

HOUSTON, TEXAS--(Marketwire - June 6, 2008) - Quest Energy Services (Canada) Ltd. ("Quest"), an indirect wholly owned subsidiary of Al-Qahtani Marine & Oilfield Services Co. of Saudi Arabia ("Al-Qahtani"), and Production Enhancement Group, Inc. (TSX:WIS) ("PEG" or the "Company") are pleased to announce the successful completion of the acquisition by Quest of 51,046,166 Common Shares of PEG. In connection with the closing of Quest's offer, PEG issued an additional 32,946,861 common shares to Quest at an issue price of Cdn$0.65 a share. In total, Quest now owns 83,993,027 Common Shares of PEG representing approx. 82.7% of the issued and outstanding Common Shares of PEG (72.3% on a fully diluted basis).

Quest and PEG are pleased to announce that Don Cobb, Chief Executive Officer of PEG and President of PEG's wholly-owned subsidiary, Wise Well Intervention Services, Inc., and Jamie Crawford, President of PEG, will remain as Directors of PEG, as will existing Board member Dean Zipse. Omar Rashid, President and Chief Executive Officer of Quest, John Paterson, Treasurer and Chief Financial Officer of Quest, and Brad Pierce have joined the PEG Board. The existing senior management team, including Don Cobb, Jamie Crawford and Doug Parker, Chief Financial Officer of PEG, will continue and no other management or employee changes are planned in connection with the acquisition.

Omar Rashid, President and Chief Executive Officer of Quest stated:

"Quest and the Al-Qahtani Group are pleased to be part of the recapitalization of the Production Enhancement Group, Inc. and are looking forward to advancing the company's existing strategies as well as capitalizing on new international opportunities with this exciting new relationship."

Don Cobb President of PEG confirmed:

"PEG and Wise Well Intervention Services are entering a new era of growth opportunity with excitement at all levels of the Company, the recapitalization and relationships built though the process with Quest and the Al-Qahtani Group will play well into our strategy to expand our businesses into various international market places."

About Production Enhancement Group, Inc.

Production Enhancement Group, Inc., a Houston-based energy services company incorporated in Alberta, Canada, trades on the TSX under the symbol WIS. PEG's wholly owned subsidiary, WISE® Well Intervention Services, Inc., ("WWIS") has developed patented WISE multifunction coiled tubing technologies and markets a full range of coiled tubing, pressure pumping, nitrogen, and wireline services.

WISE® is a registered trademark of Production Enhancement Group, Inc.

About Quest Energy Services (Canada) Ltd. and Al Qahtani Marine & Oilfield Services Co.

Quest was incorporated on February 26, 2008 under the laws of Alberta and is an indirect wholly owned subsidiary of Al-Qahtani. Quest was formed to make the Offer and has not carried on any business other than that incidental to making the Offer.

Al Qahtani is a privately held company incorporated under the laws of Saudi Arabia. Al-Qahtani is part of a larger group of operating companies in Saudi Arabia known as the Abdel Hadi Abdullah Al-Qahtani Group of Companies, all under common ownership.


This release and PEG's website referenced in this release may contain forward-looking information, including expectations of future components of revenue, cash flow and earnings. By their very nature, the preparation of such forward-looking information requires the Company to make assumptions, and involves inherent risks and uncertainties, both general and specific. There is significant risk that express or implied projections contained in such forward-looking information will not materialize or will be inaccurate. A number of factors could cause actual future results, conditions, actions or event to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking information. Such differences may be caused by factors, many of which are beyond PEG's control, which include, but are not limited to, the level of operations carried on by PEG's customers, oil and gas prices, weather conditions in offshore and land markets including natural disasters, availability of capital, access to current or future financing arrangements, manufacturing cycles of new equipment, the effects of competition in the markets in which PEG operates, difficulty in continuing to develop, produce and commercialize technologically advanced services, availability of human resources and PEG's success in anticipating and managing the foregoing risks. The preceding list is not comprehensive, and as such, investors and others who rely on these statements should consider the above factors as well as the uncertainties they represent and the risk they entail. The risks outlined above should not be construed as exhaustive. Investors are cautioned not to place undue reliance on any forward-looking information. PEG nor Quest undertakes no obligation to update or revise any forward-looking information.

The TSX does not accept responsibility for the adequacy or accuracy of this release.

Contact Information