Enterprise Oilfield Group, Inc.

Enterprise Oilfield Group, Inc.

April 21, 2010 09:04 ET

Enterprise Oilfield Group, Inc. Provides Corporate Update

ST. ALBERT, ALBERTA--(Marketwire - April 21, 2010) - Enterprise Oilfield Group, Inc ("Enterprise" or "the Company") (TSX:E) is pleased to update shareholders on several items.

Industry activity has improved considerably. The Company is experiencing bid flow at levels not seen since 2007. As communicated in the Company's news release dated March 4, 2010 the Company was successful in negotiating a multi-year agreement to provide construction and maintenance services to one of Canada's premier electricity providers. The value will be approximately $25 million over the duration of the agreement. The Company was recently successful in being awarded approximately $1.4 million in new infrastructure construction projects. Enterprise's oilfield division has completed or been recently awarded over $3 million in new pipeline and facility construction.

Sustained funding for infrastructure from all levels of government is resulting in numerous opportunities for the Company in its core construction competencies. Relating to the oilfield sector, sustained higher commodity prices specifically for oil has stimulated Canada's producers to increase spending on high grade producing assets. Project and bid flow has increased significantly in the recent period and the outlook for this division appears to be much better for the remainder of 2010 and increasing further in 2011. Increased activity, coupled with the fact that the competitive landscape has been dramatically reduced over the last two years would indicate that as contractor utilization rates increase, margins may soon follow.

As described in the Company's recently filed Management Discussion & Analysis for the period ending December 31, 2009 the Company experienced the most challenging year in recent memory for the energy services sector. Having said that, Enterprise was able to exit the year in a much stronger position with a greatly improved balance sheet; highlighted by a $4.3 million reduction of long term debt. Management will continue with its aggressive pay down of the Company's long term debt and intends to become virtually free of any long term bank debt by the end of this fiscal year.

In 2009, as the Company was experiencing lower activity levels, management was successful in reducing its surplus overheads. Sales were down approximately 30% from the previous year and management was able reduce its G&A by approximately the same ratio. Management believes that corporate operations are in the right proportion to return to profitability in 2010.

About the Company: Enterprise Oilfield Group, Inc. is a construction services company operating in the energy, utility and transportation infrastructure industry. The Company's focus is primarily underground construction and maintenance and above ground plants and facilities. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management and human resources to support continued growth.

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.

Contact Information

  • Enterprise Oilfield Group, Inc
    Leonard D. Jaroszuk
    President & CEO
    780-418-4400 or TF: 888-303-3361
    780-418-1941 (FAX)
    Enterprise Oilfield Group, Inc
    Desmond O'Kell
    Vice President, Corp. Development
    780-418-4400 or TF: 888-303-3361
    780-418-1941 (FAX)
    Financial Corp.
    Keir Reynolds
    Vice President