HOUSTON, TX, Dec. 11 /CNW/ - Production Enhancement Group, Inc.
(TSX: WIS) ("PEG" or the "Company") today announced the repositioning of the
Company to improve cash flow and profitability. PEG has restructured its
organization to focus exclusively on delivering high quality oil and gas well
intervention services. Assets are being redeployed to maximize fleet
utilization and a renewed focus on technical quality, with increased attention
to health, safety and environment ("HS&E"), is designed to improve access to
major oil and gas producers. The Company has taken action in reducing expenses
for an estimated USD 2.7 million annual savings to-date while improving its
capacity to continue to grow revenue, adding two new product lines in response
to customer demand.
"We realized that we needed to reduce costs significantly and continue to
grow our top line to improve cash flow and make the Company profitable," said
Jaime Crawford, President and Interim CEO of PEG. "We have flattened the
organization by removing several upper and middle management positions and
have right-sized our corporate team for our improved operational focus.
Internal engineering and design activities have been radically downsized, and
key product line managers have been changed out to facilitate efficient
operations and deliverable technical quality. As well, human resources
activities have been centralized, and field sales and marketing reporting
responsibilities have been redirected from operations to business development.
The board of directors is making progress in its search for a CEO, and once
that position is filled I will be able to focus more on leading an executive
sales and marketing team created to focus on strategic clients and future
"Since joining PEG in October, my job has been to build a well
intervention services organization that can deliver improved cash flow today,
this quarter, next year and on into the future," said Don Cobb, President of
Wise Well Intervention Services, PEG's operating subsidiary. "The difficult
part of this process is always the human side, as we have had to lay off many
good people, mostly engineers and equipment designers, because their roles
were no longer required as we narrow our focus to becoming a profitable,
quality-driven well intervention business. We are also redeploying our
equipment to improve fleet utilization, and we are growing our business by
creating two new product lines: the Self Generating Nitrogen Division and the
WISE Tools Division. The Self Generating Nitrogen Division will include our
three recently deployed jumbo nitrogen generation units for land operations
and two skid-mounted nitrogen generation units for offshore work. The WISE
Tools Division will include new downhole drilling motors and other assemblies.
It is expected to generate earnings in its own right and as well as through
increasing utilization of our coil tubing units."
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
WISE(R) is a registered trademark of Production Enhancement Group, Inc.
The TSX does not accept responsibility for the adequacy or accuracy of
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.
For further information:
For further information: visit www.productionenhancement.com or contact:
Douglas Parker, Chief Financial Officer, Production Enhancement Group, Inc.,
(281) 282-1851, firstname.lastname@example.org; Ken Wetherell, Investor
Relations, Bryan Mills Iradesso, (403) 503-0144 x224, email@example.com