Enterprise Oilfield Group, Inc.
TSX : E

Enterprise Oilfield Group, Inc.

November 16, 2009 18:00 ET

Enterprise Oilfield Group, Inc. Announces Third Quarter Results

ST. ALBERT, ALBERTA--(Marketwire - Nov. 16, 2009) - For the three months ended September 30, 2009, the consolidated revenue of Enterprise (TSX:E) amounted to $6.6 million, compared to $8.7 million for the same period last year, a decrease of $2.1 million. The consolidated revenue for the nine month period ended September 30, 2009 was $20.1 million compared to $28.1 million for the nine months ended September 30, 2008, a decrease of $8.0 million. The decrease in revenue is attributed to less than anticipated projects in the industry resulting from tight capital markets, decreased capital expenditures and lower oil and natural gas prices. The Company had negative EBITDAS of $183 thousand and a net loss of $1.1 million during the three month period ended September 30, 2009, compared to EBITDAS of $1.6 million and net income of $588 thousand for the three month period ended September 30, 2008. Negative EBITDAS for the nine months ended September 30, 2009 was $391 thousand with a net loss of $2.3 million compared to EBITDAS of $4.2 million and a net income of $1.3 million for the nine months ended September 30, 2008. The reduction of EBITDAS is attributable to lower than expected revenue and margins on energy sector projects. The low margins in the energy sector were offset by significantly higher margins in the utilities and infrastructure sector.

The company continues to monitor its overheads and reduce costs where necessary while maintaining the effectiveness of the operations. Equipment costs, operational costs and G&A costs are all under review. For the third quarter ended September 30, 2009 management targeted old, redundant and underutilized equipment. This equipment was sold resulting in proceeds on disposal of $788 thousand. These proceeds were used to pay down long term debt and contribute towards operating capital. For the nine months ended September 30, 2009, proceeds on disposal of equipment totaled $1.0 Million. In addition to managing our equipment fleet, we continued with aggressive repayment of our long term debt, repaying $1.1 million in the third quarter of 2009, and $3.4 million for the nine months ended September 30, 2009. The company intends eliminate its long term debt bank debt inside of the 2010 fiscal year.

(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)
    contact@EnterpriseOil.ca
    www.EnterpriseOil.ca