Enseco Energy Services Corp.
TSX VENTURE : ENS

Enseco Energy Services Corp.

October 28, 2009 08:15 ET

Enseco Energy Services Corp. Announces Appointment of New Chief Executive Officer

CALGARY, ALBERTA--(Marketwire - Oct. 28, 2009) - Enseco Energy Services Corp. (TSX VENTURE:ENS) ("Enseco" or the "Company") is pleased to announce the appointment of Lane Roberts as the new President and Chief Executive Officer and as a director of the Company. Mr. Roberts was appointed to replace David A. Hawkins as the President Chief Executive Officer of the Company. Mr. Hawkins will continue in a senior management role with the Company utilizing his industry knowledge and experience.

Enseco Chairman, Scott Ratushny noted "The Board of Directors wishes to thank David for all of his hard work and dedication to Enseco which has allowed us to streamline the Company and bring us to this important juncture."

Mr. Roberts was previously the Managing Director of Sondex plc ("Sondex"), a UK based leading supplier of downhole technologies to the oil and gas industry from 2004 to 2008. With the purchase of Sondex by General Electric, Roberts spent the last 12 months ensuring a smooth integration of Sondex into GE Energy, a division of General Electric. Prior to that, Mr. Roberts served in various senior management roles at Computalog, USA which later became a division of Precision Drilling Ltd.

In connection with Mr. Roberts' appointment, Enseco has agreed to complete a private placement (the "Private Placement") of common shares of Enseco ("Common Shares") with Dewar Lake Ranch Inc. ("Dewar Lake"), a company controlled by Mr. Roberts. The private placement will consist of issuing 8.5 million Common Shares at an issue price of $0.10 per share. The consideration for the private placement will be satisfied by the transfer and assignment of a mortgage (the "Mortgage") over certain real property in British Columbia, in the aggregate principal amount of $850,000, from Dewar Lake to Enseco. The shares issued to Dewar Lake in connection with the private placement will be subject to a contractual escrow, with the shares only being released on a pro-rata basis based on the proceeds realized by the Company on the Mortgage. Closing of the Private Placement is expected to occur on or about October 30, 2009.

The Common Shares issued to Dewar Lake pursuant to the Private Placement will be subject to a four-month hold period.

In addition, the Company has granted Mr. Roberts 800,000 options ("Options") to acquire Common Shares pursuant to the Company's stock option plan. The Options will expire five years from the date of grant and have an exercise price equal to $0.13 per Option and will vest as to one-third on each of the first, second and third anniversaries of the grant date. In connection with the grant of the Options the Company has reserved 800,000 Common Shares for issuance pursuant to the exercise thereof. Furthermore, the Company granted Mr. Roberts 400,000 share appreciation rights ("SARS"). The SARS will expire five years from the date of grant and have a grant price (the "Grant Price") equal to $0.13 and will vest as to one-third on each of the first, second and third anniversaries of the grant date. Each SAR will entitle Mr. Roberts to receive a cash payment equal to the amount by which the closing price of one Common Share on the date of exercise of a SAR exceeds the Grant Price of such SAR multiplied by the number of SARS so exercised.

The board of directors of Enseco going forward will consist of Scott Ratushny, John Brussa, John Aldred, Greg Tisdale, David A. Hawkins and Lane Roberts.

Enseco is an 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 and Minot, North Dakota, Montana, Wyoming as well as a corporate and sales office located in Calgary. Enseco is led by an experienced management team currently offering well swabbing, production testing, open hole logging, and directional drilling services 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 of the Private Placement, the issuance of Common Shares, the consideration for the Private Placement, the terms of the escrow of the Common Shares issued pursuant to the Private Placement and the composition of the board of directors of the Corporation following the appointment of Lane Roberts. 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 timing of closing of the Private Placement, the value of the Mortgage and the composition of the board of directors. 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