IPS and Schlumberger Form Joint Venture

Integrated Production Services Ltd. has signed a Memorandum of Understanding with Schlumberger Canada Limited. The MOU allows SLB Wireline Specialty Services to be run as joint operations using IPS service units for E-Line and Slickline conveyance.

The wireline Specialty Services covered by the MOU include Production Logging, Reservoir Evaluation, Casing Corrosion/Inspection, Mechanical Plug Back services, Perforating, Memory Production Logging and Downhole Memory Gauges. The tools will be conveyed into and from wellbores using IPS's 54 unit fleet of E-Line and Slickline units.

Schlumberger is recognized worldwide as the premier provider of wireline technology, these technologies are regularly employed by oil and gas producing companies to analyze and enhance production from existing wellbores. While Schlumberger will continue to run services using their own service units, this MOU will enable IPS's customers to access this technology.

Schlumberger selected IPS because of its broad market delivery capabilities, the quality of its equipment, the experience of its field operators, its strong safety performance, and its commitment to excellent service and value-added solutions for its customers.

It is anticipated that the IPS/Schlumberger agreement will be commercially operational by December 1, 2001 after training of IPS technical sales representatives and field operators on the use and application of the equipment and technology has been completed.