P.E.G. Board Endorses Offer to be Purchased by Quest Energy

Production Enhancement Group, Inc. and Quest Energy Services (Canada) Ltd., an indirect wholly owned subsidiary of Al Qahtani Marine & Oilfield Services Co. of Saudi Arabia have entered into a definitive agreement under which Quest has agreed to make an offer to purchase all the outstanding common shares of PEG for CDN $0.65 per share.

The Offer is conditional upon, among other things, there having been validly deposited under the Offer and not withdrawn at least 51% of the outstanding Common Shares calculated on a diluted basis.