Oil States’ Well Site Services segment is a leading North American provider of critical services at the well site, including remote site accommodations, completion and production rental equipment and land drilling rigs. Our focus in Well Site services is to serve exploration and production companies in the U.S. and Canada and the oil sands developers and their contractors in northern Canada.

Our accommodations business provides remote site accommodations primarily in Canada but also in the Rockies, Fayetteville Shale region and offshore in the United States. These mobile, modular accommodations provide first-class, scalable accommodations for employees in remote areas where traditional hotels and accommodations are not feasible or accessible. An increasing focus of our accommodations business is our growing presence in the oil sands region of northern Alberta, Canada. Since mid year 2006, Oil States through its Canadian subsidiary, PTI Group Inc., has installed over 3,000 rooms in three major lodges to support oil sands operations with plans to expand its presence in these lodges to over 3,600 rooms by June 2008.

In the U.S., Oil States provides well site services in many of the active basins. Through our rental tool operations, we provide completion and production related rental equipment throughout the United States. Our equipment is critical in improving the efficiency and safety of the operations of wireline, coiled-tubing, gravel pack and pressure pumping companies. We have augmented our operations through over twenty acquisitions over the past seven years. Most recently, we completed the acquisitions of Well Testing Inc and Schooner Petroleum Services, Inc. These acquisitions are consistent with the strategic focus on completion and production products and services in the U.S.

In addition to completion and production rental tools, Oil States, through its CapStar subsidiary, provides land drilling services in Texas, the Rockies and in Ohio. The CapStar fleet of 35 rigs is standardized on highly mobile, efficient rigs with small to medium depth capabilities. These rigs provide operators with a cost-effective option for development drilling applicable to many of the active basins in the United States.