Enseco Energy Services Corp.
TSX VENTURE : ENS

Enseco Energy Services Corp.

October 19, 2007 19:44 ET

Enseco Energy Services Corp. Announces Completion of Private Placement

CALGARY, ALBERTA--(Marketwire - Oct. 19, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Enseco Energy Services Corp. (TSX VENTURE:ENS) ("Enseco") is pleased to announce that it has completed a private placement of 8,001,497 common shares ("Common Shares") of Enseco at a price of $0.50 per Common Share. Directors, management and employees of Enseco acquired an aggregate of approximately 5.7 million Common Shares.

The Common Shares are subject to a hold period and may not be traded until February 20, 2008 except as permitted by applicable securities laws and the rules of the TSX Venture Exchange. The private placement was non-brokered.

The funds from the private placement will be used in connection with Enseco's development of its "Open Hole Logging" business. Enseco announced that on January 23, 2007 it signed a formal agreement with an established multinational down-hole tool manufacturer to obtain exclusive Canadian rights to a new suite of open-hole logging tools (the "Technology"). Full commercialization of the Technology is expected to occur prior to the next winter drilling season. Enseco believes that the Technology will provide it with access to a market currently dominated by a small group of large multi-national oilfield service providers. In addition, the company developing and manufacturing the Technology has an established and committed research and development department. Through its relationship with this company, Enseco is excited about the potential of the Technology's functionality and capability to evolve, as well as having access to other new generation down-hole tools that could benefit Enseco's wireline division.

Enseco is an emerging supplier of energy related services operating throughout the Western Canadian Sedimentary Basin with operational centres in Red Deer, Whitecourt, Edmonton, Beaverlodge, Grande Prairie, and Fort St. John, as well as corporate and sales offices located in Calgary. Enseco is led by an experienced management team currently offering well swabbing, production testing, cased hole logging, perforating and propellant stimulation services and directional drilling services with a focus on continued value creation through accretive acquisitions and organic growth.

This news release does not constitute an offer to sell or solicitation of an offer to buy any securities in the United States. The subscription receipts and common shares have not been and will not be registered under the United States Securities Act of 1933 or any state securities laws and may not be offered or sold within the United States unless an exemption from such registration is available.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Enseco Energy Services Corp.
    David A. Hawkins
    President and CEO
    (403) 806-0088
    or
    Enseco Energy Services Corp.
    Aly Khan Musani
    Senior Vice President and CFO
    (403) 806-0088