Enseco Energy Services Corp.

Enseco Energy Services Corp.

February 17, 2010 21:56 ET

Enseco Energy Services Corp. Announces the Closing of Its Previously Announced Acquistion

CALGARY, ALBERTA--(Marketwire - Feb. 17, 2010) - Enseco Energy Services Corp. ("Enseco" or the "Company") (TSX VENTURE:ENS) is pleased to announce that it has closed its previously announced acquisition of the assets (the "Directional Drilling Assets") of a private directional services company (the "Private Company") with operations primarily in the United States (the "Acquisition"). The payment for the Directional Drilling Assets consisted of aggregate consideration of approximately $7.8 million consisting of: (i) the payment of approximately $4.0 million in cash to settle payments owing to certain secured creditors of the Private Company; (ii) the issuance of a one-year $3.0 million 12% convertible secured subordinated debenture with a conversion price of $0.30 per share, and a one year extension at the option of the Company, with each of the interest rate and conversion price being subject to adjustment in certain circumstances, including an event of default, to settle outstanding payments to a secured creditor of the Private Company; and (iii) the issuance of 4.1 million common shares ("Common Shares") of Enseco, at a deemed issue price of $0.20 per share, to settle additional payments owing to secured creditors of the Private Company. The Common Shares and the debenture to be issued pursuant to the Acquisition will be subject to a four-month hold period.

Corporate Strategy

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


Certain information and statements contained in this press release constitute forward-looking information. Specifically this press release contains forward-looking statements relating to Enseco's business following the Acquisition 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 benefits to be achieved from the Acquisition and prevailing commodity prices. 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 realize benefits from the Acquisition. 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