Enseco Energy Services Corp.

Enseco Energy Services Corp.

January 30, 2007 08:00 ET

Enseco Energy Services Corp. Announces Open Hole Exclusivity Agreement, First Directional Drilling Engagement, Completion of Acquisition, and Board Update

CALGARY, ALBERTA--(CCNMatthews - Jan. 30, 2007) - Enseco Energy Services Corp. ("Enseco") is pleased to announce that on January 23, 2007 it signed a formal agreement (the "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"). The Agreement relates to a previously signed development proposal. 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's well swabbing and production testing divisions continue to maintain utilization rates commensurate with calendar first quarter activity levels. In conjunction with this, our directional drilling division commenced operations in January and has recently completed its first directional well using its new electromagnetic measurement while drilling tool.

Enseco also is pleased to disclose that it has completed its previously announced acquisition of all of the issued and outstanding shares of a private company owned by Mr. Hawkins and another arm's length party for total consideration of $981,250, payable with $250,000 in cash and 225,000 common shares of Enseco. The private corporation has assets of $340,000 in cash and purchase orders to acquire certain oilfield service assets aggregating approximately $900,000 and no liabilities.

Enseco further announces that Steve Soules has resigned as a director of Enseco in order to pursue other interests. Enseco would like to thank Mr. Soules for his contributions and wish him all the best in his future endeavors.

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 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, wireline, and directional drilling services with a focus on continued value creation through accretive acquisitions and organic growth.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Enseco Energy Services Corp.
    Kelly M. Nichol
    President and CEO
    (403) 806-0088
    or
    Enseco Energy Services Corp.
    Dave A. Hawkins
    Senior Vice President and CFO
    (403) 806-0088