Enterprise Oilfield Group, Inc.
TSX : E

Enterprise Oilfield Group, Inc.

August 14, 2009 16:45 ET

Enterprise Oilfield Group, Inc. Announces Second Quarter Results

ST. ALBERT, ALBERTA--(Marketwire - Aug. 14, 2009) - Enterprise Oilfield Group, Inc. (TSX:E) -

For the three months ended June 30, 2009, the consolidated revenue of Enterprise amounted to $5 million, compared to $6.8 million for the same period last year, a decrease of $1.8 million. The consolidated revenue for the six month period ended June 30, 2009 was $13.9 million compared to $19.4 million for the six months ended June 30, 2008, a decrease of $5.5 million. The decrease in revenue is attributed to less than anticipated projects in the industry resulting from tight capital markets, decreased capital expenditures in the industry and lower oil and natural gas prices. The Company had negative EBITDAS of $696 thousand and a net loss of $1.2 million during the three month period ended June 30, 2009, compared to negative EBITDAS of $696 thousand and net loss of $1.1 million for the three month period ended June 30, 2008. Negative EBITDAS for the six months ended June 30, 2009 was $208 thousand with a net loss of $1.2 million compared to EBITDAS of $2.6 million and a net income of $740 thousand for the six months ended June 30, 2008. The reduction of EBITDAS is partially attributable to costs relating to the downsizing of the Company's Wainwright operation combined with start-up and integration costs of the Peace River facilities maintenance operations and lower than expected margins on the projects to date.

The Company continues to manage its equipment fleet efficiency, purchasing new equipment and selling older or underutilized equipment in order to maintain a more efficient fleet. For the three and six months ended June 30, 2009, proceeds on disposal of older/underutilized equipment totaled $221 thousand and $259 thousand respectively.

In addition to managing our equipment fleet, we continued with aggressive repayment of our long term debt, repaying $1.5 million in the second quarter of 2009, and $2.4 million for the six months ended June 30, 2009.

The Company is currently re-negotiating its long term debt, credit facilities and associated covenants with its lender in an effort to have a more conventional debt repayment plan, which will result in increased cash flow and will enable the Company the flexibility to implement its strategic initiatives as well as preserve cash. Recent discussions with our lenders have indicated our required principal payments on long term debt will be reduced by approximately $79 thousand per month, with an anticipated effective date in August 2009.

(1) EBITDAS = Earnings Before Interest, Taxes, Depreciation, Amortization and Stock Based Compensation

Forward Looking Statements

This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release

Contact Information

  • Enterprise Oilfield Group, Inc.
    Leonard D. Jaroszuk
    President & CEO
    (780) 418-4400 or Toll Free: 1-888-303-3361
    (780) 418-1941 (FAX)
    or
    Enterprise Oilfield Group, Inc.
    Desmond O'Kell
    Vice President, Corp. Development
    (780) 418-4400 or Toll Free: 1-888-303-3361
    (780) 418-1941 (FAX)
    Email: contact@EnterpriseOil.ca
    Website: www.EnterpriseOil.ca