Enseco Energy Services Corp.
TSX VENTURE : ENS

Enseco Energy Services Corp.

November 13, 2009 07:43 ET

Enseco Energy Services Ccorp. Announces a Strategic Acquistion

CALGARY, ALBERTA--(Marketwire - Nov. 13, 2009) - Enseco Energy Services Corp. ("Enseco" or the "Company")(TSX VENTURE:ENS) is pleased to announce the Company has signed a definitive agreement to acquire all of the outstanding common shares of a private directional services company with operations in United States and Canada. 

The private company will be acquired for consideration consisting of $5.0 million cash, 45 million common shares of Enseco and an earnout of up to $5.0 million. Payment of the earnout will be time based and performance related. Enseco expects to close the acquisition within the next two weeks.

The private directional services company operates 18 directional drilling kits and related equipment throughout Canada and the United States and has been owned and operated by its existing management team since it was set up in 2004. This management team has grown the company into one of the premier private directional drilling companies, providing directional drilling services to some of the most active oil and gas companies in the Western Canadian Sedimentary Basin.

Enseco's CEO Mr. Lane Roberts stated, "We are very excited that the original ownership and management team will continue with Enseco and play a key role in managing Enseco's Directional Drilling division going forward. The combination of Enseco's current operating divisions and the newly expanded directional drilling division will achieve significant scale and mass resulting in operational synergies and economies of scale for Enseco. The combined Directional Drilling business will operate 24 Directional Drilling kits and related equipment going forward." 

Corporate Strategy

The Company, while continuing to optimise its existing business lines, will be aggressively expanding its key businesses both organically and through strategic acquisitions domestically and internationally. Mr. Roberts stated, "Today, Enseco, with it's very capable board of directors and experienced combined senior management, is now well positioned to take advantage of a strengthening business cycle to maximise our shareholder value. There are excellent opportunities in USA, Canada and outside North America that will allow Enseco to grow significantly in the future." Of particular focus will be increasing the Company's presence in both the growing market for horizontal well technology and services, and the high technology formation logging services, outside of Canada.

Enseco is a growing supplier of energy related services operating throughout Western Canada and the United States, with operational centres in Red Deer, Whitecourt, Edmonton, Beaverlodge, Grande Prairie, Fort St. John, Midale (Saskatchewan), Minot (North Dakota) and Gillette (Wyoming) as well as a corporate and sales office located in Calgary. Enseco is led by an experienced management team currently offering directional drilling services, well swabbing, production testing and open hole logging, with a focus on continued value creation through accretive acquisitions and organic growth.

FORWARD-LOOKING STATEMENTS

Certain information and statements contained in this press release constitute forward-looking information. Specifically their press release contains forward-looking statements relating to the closing date of the acquisition, the anticipated purchase price, the payment of the purchase price, the combined business of the private directional services company and Enseco the ability to achieve significant scale and mass, expected synergies and economies of scale, and Enseco's ongoing focus and business plans. The forward-looking statements contained in this press release speak only as of the date of this press release and are expressly qualified by this cautionary statement. These forward-looking statements are based on certain key assumptions regarding, among other things, the value of the private directional services company and it's assets and the benefits to be achieved therefrom, the timing of closing, the satisfaction of closing conditions and the receipt of applicable regulatory approvals. Furthermore, these forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Such factors include, but are not limited to general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations and changes in how they are interpreted and enforced, increased competition, volatility of commodity prices, and the inability to complete the transactions or to obtain required regulatory approval. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Enseco's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, or if any of them do so, what benefits that Enseco will derive therefrom. Enseco disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Enseco Energy Services Corp.
    Lane Roberts
    President and CEO
    (403) 806-0088