Production Enhancement Group, Inc. (PEG) is a publicly traded* holding company, headquartered in Houston, Texas, that owns 100% of WISE Well Intervention and patented WISE multifunction coiled tubing technology. We are aggressively introducing WISE patented coiled tubing technology to the worldwide oil and gas industry—through growth and acquisitions in North America and through joint ventures in the rest of the world. By exploiting the proven competitive advantages of WISE multifunction technology, we aim to take a significant share of the well-intervention market. Our success is predicated on building and supporting a global fleet of WISE multifunction coiled tubing units. The information given here is intended for owners of well-intervention and related service companies who will consider becoming a partner in our growth.

Here's a brief overview of the many benefits of joining Production Enhancement Group.

What PEG offers you

Industry-leading well intervention technology

Our patented WISE multifunction technology is the most revolutionary development in surface coiled tubing systems in decades. It is based on the simple concept of driving several functions—such as nitrogen pumping, coiled tubing, and a hydraulic crane—from a single power source. The key to the approach is our patented method for allocating hydraulic power as required throughout an intervention job. The multifunction approach delivers important customer benefits that make WISE coiled tubing units the most competitive in the field.

A team of well intervention veterans

Our operations team has extensive well-intervention experience, in some cases dating back to the very beginning of coiled tubing and nitrogen services. All have had successful careers with at least one of the major service companies.

Acquisition professionals

On the financial side, we have seasoned professionals with strong backgrounds in mergers and acquisitions and corporate finance.

Smooth acquisition integration

It is well known that acquiring companies and integrating companies successfully are two different things. PEG has a carefully planned, phased integration approach that is designed to retain your current management team, preserve your company’s strengths, and cause minimum disruption of your business

Financial strength

PEG is a solid, financially strong company. Our initial public offering in April 2006 was a success, and our stock is publicly traded on the Toronto Stock Exchange under the symbol WIS. We also have access to additional financing through G.E. Energy Financial Services

Technical training and support

We are building an advanced training center to support our well intervention operations. This center incorporates the very latest in training technology. Our goal is to have the best-trained coiled tubing operators in the industry.

Global support system

Also well underway is our WISE ONE global support center, where we will be able to monitor fully instrumented WISE units operating anywhere in the world, in real time. All equipment and job parameters will be captured and transmitted back to the support center, as well as to the onsite control consoles. This allows us to provide critical trouble-shooting and problem-solving support from a central location and to maximize service life and utilization of our equipment.

Marketing support

We have developed a solid branding program to support WISE Well Intervention, through trade journal advertising, internet, trade shows, sales presentations, and sales literature. All of these tools will be available to you.

Superior employee benefits

PEG is committed to being the employer of choice in this industry. Toward that end, we offer outstanding employee benefits, including healthcare, savings and retirement plans, and stock options for key individuals. In addition, we believe in promotion from within, giving our employees valuable opportunities for career growth.

Liquidity and an exit strategy for owners

As you are know, ownership of a private company is not a very liquid asset, and you might be looking for the best way to increase your ready assets without substantially changing your business or personal lifestyle. By exchanging your ownership for cash and stock in PEG, you greatly improve your liquidity while continuing to manage your company's operations and participate in its growth.

Retirement and estate planning.

Have you thought about what to do with your company when you are ready to retire? If you've studied the options, you know how complicated they can be, involving a wide range of financial and tax considerations. Perhaps the most appealing aspect of merging your company with PEG is that it will greatly simplify your “exit strategy” and your retirement planning.

Financial opportunity.

An important advantage of joining the PEG organization is that you will receive a significant amount of our stock. If the Company achieves its goals—toward which you and your organization will contribute in a meaningful way—the financial reward for you a s a shareholder will be substantial.

Professional growth.

Of course, it's great to own your own business, and for many people that's the ultimate career goal. If, however, you would like to participate in managing an aggressively growing, international corporation, PEG offers you that opportunity.

Frequently asked questions

How much is your business worth?

Many factors affect the value of your company: sales, profitability, operating trends, quantity and condition of fixed assets, market share, and so on. An initial value is established after a review of your company's financials and other data.

What are the steps in a transaction?

The first step is to sign a confidentiality agreement. Then, as noted above, we review your company's financials and operating performance to establish a fair valuation. After we both agree to the price and terms, we sign a letter of intent that spells out all the agreed-on terms. The next phase, due diligence, verifies key financial and operating information. Finally, all parties sign the purchase contract. A typical transaction takes from 30 to 60 days from the time the letter of intent is signed.

How would you be paid?

Typically, acquisitions are paid for with a combination of cash and stock in the acquiring company. The exact ratio varies with every transaction, with some transactions consisting entirely of stock. Generally, the acquiring company prefers to maximize the amount of stock versus cash, and in many cases, this is to your advantage, especially if the buyer is an aggressive company in a high-growth business sector. PEG strives for a blend of consideration that allows sellers to achieve significant liquidity while still participating in future appreciation.

Would you still be in charge of your company?

We want only competitive, successful companies to join PEG; we are not interested in acquiring weak businesses then trying to turn them around. Because companies who join us are already successful, it makes sense to leave them as independent as possible. Our policy is to provide outstanding equipment, business systems and support, but to stay out of your way in daily operations to the greatest possible extent.

Would you have to sign an employment contract?

Wherever possible, we want current management to remain in place. Exceptions, of course, are when an owner is anxious to retire. If you are one who wishes to continue with the company, you will be an important element in the overall success of the corporation, and we will ask that you agree to stay on for a specified minimum length of time.

 For more information, contact  corporatedevelopment@productionenhancement.com

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