Wireline Segment . Our wireline segment operated a fleet of 59 cased-hole wireline trucks, 15 offshore wireline skids and 4 plug and abandonment ("P&A") packages as of June 30, 2006. All of our wireline trucks and offshore skids are equipped with top-of-the-line computer systems. We primarily provide services in cased-hole environments. Cased-hole wireline services are performed during and after the completion of the well, and from time to time thereafter during the life of the well. Wireline services are performed using a wire cable that is lowered from a truck or skid into a well with various types of tools and instruments attached to the end of the cable. Once in the well, the instruments can transmit data back to a computer system in the truck or skid for analysis. Specific wireline services include: logging services such as cement bond evaluation, production logging and other measurements; pipe recovery services; and perforating and mechanical services such as setting plugs and packers. We believe we are a leading provider of pipe recovery services in the U.S. , which requires significant experience, expertise and specialized equipment. Other services in the wireline segment include P&A services, which are used at the end of a well's productive life, and tubing conveyed perforating ("TCP"), which is a method of perforating the casing in order to open the flow path in a well for hydrocarbons.

Cased Hole Wireline Unit

Open-hole wireline services are performed after the drilling of the well but prior to its completion. We do not perform traditional open-hole logging services because of the advanced technology and research and development requirements. Cased-hole wireline services are performed during and after the completion of the well, as well as from time to time thereafter during the life of the well. Our services primarily relate to providing cased-hole wireline services. With our fleet of wireline and P&A equipment we provide the following services:

Logging Services. The truck or skid-mounted wireline logging services are used to evaluate downhole well conditions such as production patterns, the cement bonding effectiveness between the casing and the formation and formation characteristics such as lithology and porosity. These logging services are provided at various stages of the process of drilling and completing natural gas and oil wells as well as at various times thereafter until the well is depleted, plugged and abandoned. Such services are provided using a wireline unit equipped with an armored cable that is lowered by winch into an existing well. The cable lowers instruments and tools into the well to perform a variety of services and tests. The wireline unit's instrument cab contains electronic equipment to supply power to the downhole instruments, to receive and record data from those instruments in order to produce the "logs" which define specific characteristics of each formation and to display the data received from downhole. Each of our wireline units is equipped with a top-of-the-line computer system.

Pipe Recovery Services. Experienced pipe recovery specialists use specialized "free-point" wireline tools to find the point at which the tubing or drill pipe is stuck in a well. Once the "free-point" (the lowest point in the well where the pipe is still free to move) is located, then the pipe recovery specialist uses his judgment and experience to determine how best to free the pipe. Generally the pipe will be "backed off" (un-screwed) at the joint just above the free-point or the pipe may be cut with explosives, chemical or mechanical cutters just above the free point. Once the pipe is cut it can be removed from the well, allowing the rig crew to go back to "fish" the remaining portion of the tubing or drillpipe with grapples, jars and other specially made tools.

Perforating Services. Perforating involves positioning a perforation "gun" that contains explosive jet charges down the wellbore next to a productive zone. A detonator is fired and primer cord is ignited, which then detonates the jet charges. The resulting explosion creates holes through the casing and cement and into the formation, thus allowing the formation fluid to flow into the wellbore and be produced to the surface. We primarily deploy our perforation gun by a conventional wireline cable, if appropriate, or using conventional tubing or drill pipe, which is called tubing conveyed perforating or "TCP".

Mechanical Services. Cased-hole wireline equipment is often used to set plugs, packers, dump cement and make other physical changes to a well bore. The mechanical tools (such as plug setting tools) are usually combined with a logging tool to ensure proper placement of the plug or packer in the well. Mechanical services are often provided along with logging or perforating services on the same trip to the well site and are an integral part of the drilling and completion process.

Plugging and Abandonment. Cased-hole wireline equipment, pumping equipment and hydraulic jacks are used in the process of permanently closing natural gas and oil wells no longer capable of producing in economic quantities at the end of their productive life. A typical P&A job will include cutting the tubing and/or casing with wireline explosives or other cutters, removing the salvageable tubing with hydraulic jacks and then setting plugs and cementing the well bore. The P&A process generally takes several days to complete. Plugging and abandonment work can provide favorable operating margins and is less sensitive to natural gas and oil pricing than drilling and workover activity since well operators must plug a well in accordance with state or federal regulations when it is no longer productive.