Production Enhancement Group announces termination of Middle East joint venture



    HOUSTON, TX, Dec. 10 /CNW/ - Production Enhancement Group, Inc. ("PEG" or
the "Company") (TSX: WIS) today announced that PEG has allowed its joint
venture agreement with Al Qahtani Maritime & Oil Field Services Co. ("Al
Qahtani"), announced on April 16, 2007, to expire of its own terms. The
purpose of the joint venture was to deploy PEG's patented WISE(R)
multifunction coil tubing well intervention systems in the Middle East.
    Don B. Cobb, President and Chief Operating Officer of WISE Well
Intervention Services, Inc., PEG's operating subsidiary, said "In the final
analysis, the parties were unable to reach mutually agreeable terms under
which to implement the joint venture. As well, at this stage it makes more
sense for PEG to focus on exploiting growth opportunities that we see much
closer to home. We continue to believe that WISE Well Intervention Services
can play a key role in the Middle East, and we will explore alternative
avenues to penetrate that market at the appropriate time."

    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(R) Well Intervention Services, Inc.,
has developed patented WISE multifunction coiled tubing technologies and
markets a full range of coiled tubing, pressure pumping, nitrogen, and
wireline services.

    WISE(R) is a registered trademark of Production Enhancement Group, Inc.

    Disclaimers

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

    This release and PEG's website referenced in this release may contain
forward-looking statements, including expectations of future components of
cash flow and earnings. Investors are cautioned that assumptions used in the
preparation of such information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from those
predicted, a result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of PEG. These risks
include, but are not limited to, the risks associated with the oil and gas
industry, commodity prices, and exchange rate changes. Industry related risks
could include, but are not limited to, operational risks in exploration,
development, and production, delays or changes in plans, and health and safety
risks, including, without limitation, costs and expenses. The risks outlined
above should not be construed as exhaustive. Investors are cautioned not to
place undue reliance on any forward-looking information. PEG undertakes no
obligation to update or revise any forward-looking statements.

    %SEDAR: 00023366E




For further information:

For further information: visit www.productionenhancement.com or contact:
Douglas Parker, Chief Financial Officer, Production Enhancement Group, Inc.,
(281) 282-1851, dparker@wisewellintervention.com; Ken Wetherell, Investor
Relations, Bryan Mills, Iradesso, (403) 503-0144 x224, kwetherell@bmir.com

Organization Profile

PRODUCTION ENHANCEMENT GROUP, INC.

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