Enerflex Systems Income Fund
TSX : EFX.UN

Enerflex Systems Income Fund

January 07, 2008 19:16 ET

Enerflex Announces Dismissal of Arbitration Proceedings

CALGARY, ALBERTA--(Marketwire - Jan. 7, 2008) - Enerflex Systems Income Fund ("Enerflex") (TSX:EFX.UN) announces that arbitration proceedings initiated by Western Gas Resources Inc. ("Western") before the American Arbitration Association in the second quarter of 2006 against Enerflex Systems, Inc. ("ESI"), a wholly-owned United States subsidiary of Enerflex, have been dismissed by the arbitration panel, with prejudice to the right of Western or its successors to re-file its claims.

Western and ESI have mutually agreed to release all claims and counterclaims, without either party paying any damages or compensation to the other and with each party bearing its own legal costs.

Western had asserted that compressor packages purchased from ESI did not function at optimum efficiency, and that ESI was responsible for alleged consequential damages. ESI's contract terms excluded liability for consequential damages. Prior to dismissal of the entire arbitration, the arbitration panel granted ESI's motion to dismiss all claims for consequential damages, based on the contract.

"The dismissal of these arbitration proceedings is important, not just for ESI but for our industry as a whole" said P. John Aldred, Enerflex's Executive Chairman. "This vindicates our position that supply contracts are for the protection of all parties, and a supplier has the ability to exclude liability for consequential damages from such a contract," Aldred concluded.

Enerflex is a leading Canadian supplier of products and services to the global oil and gas production industry. Our core expertise lies between the wellhead and the pipeline. Enerflex provides natural gas compression, power generation and process equipment for sale, rent or lease, hydrocarbon production and processing facilities, electrical, instrumentation and controls services and a comprehensive package of field maintenance and contracting capabilities. Through our ability to provide these products and services in an integrated manner, or as stand-alone offerings, Enerflex offers its customers a unique value proposition.

Headquartered in Calgary, Canada, Enerflex has approximately 2,600 employees. Enerflex, its subsidiaries, interests in affiliates and joint-ventures operate in Canada, Australia, the Netherlands, the United States, Germany, Pakistan, Egypt, Indonesia and Malaysia. Enerflex's trust units trade on the Toronto Stock Exchange under the symbol "EFX.UN".

Contact Information

  • Enerflex Systems Income Fund
    J. Blair Goertzen
    President and Chief Executive Officer
    (403) 236-6852
    (403) 720-4385 (FAX)
    or
    Enerflex Systems Income Fund
    P. John Aldred
    Executive Chairman
    (403) 236-6806
    (403) 720-4385 (FAX)
    or
    Enerflex Systems Income Fund
    D. James Harbilas
    Vice-President & Chief Financial Officer
    (403) 236-6857
    (403) 720-4385 (FAX)