Enerflex Systems Income Fund

Enerflex Systems Income Fund

March 03, 2009 16:05 ET

Enerflex Awarded Contracts Totalling Approximately C$165 Million

CALGARY, ALBERTA--(Marketwire - March 3, 2009) - Enerflex Systems Income Fund (TSX:EFX.UN) is pleased to announce that over the first two months of 2009 it has been awarded contracts in all four of its geographic regions totalling approximately $165 million. Out of this total, two contract wins are of particular importance.

The first is a compression order relating to Coal Bed Methane (CBM) destined for the Powder River Basin in the United States. Enerflex also supplied processing equipment for this project during the fourth quarter of 2008.

The second contract is for the provision, operation and maintenance of an onshore natural gas compression facility and associated services provided for BP in the Sultanate of Oman valued in our target range of $50 to $100 million. The facility will be constructed as part of the appraisal of the Khazzan and Makarem gas fields.

The remainder of the balance includes product export from Canada to all of our international regions, construction and environmental work completed by our Australasia business units, the installation of Combined Heat and Power (CHP) units in Europe and the delivery of compression units in our Americas region.

"The CBM order to the U.S. demonstrates that we are still being awarded large contracts in the region despite decreased capital expenditures from many exploration and production companies. This leads us to believe that currently, capital spending for some unconventional plays in the Americas is preserved" commented Blair Goertzen, President and CEO of Enerflex.

"The Build, Own, Operate and Maintain contract represents a first for Enerflex and is very important to our business development in the region as it will position Enerflex as a viable turnkey solutions provider in the Middle East and North Africa (MENA). The project will be completed through a collaboration of Enerflex's different regional business units with Australasia providing overall project management, design, construction management and procurement, Americas undertaking design and fabrication of the major equipment supply, commissioning and operations and MENA providing co-ordination support within its region" concluded Goertzen.

The development of the Khazzan and Makarem fields will provide the supply of natural gas to meet Oman's rising energy demand.

The project is expected to achieve first gas during 2010. The compression facility is designed to deliver up to 75 million standard cubic feet per day of treated sweet gas.

About Enerflex

Enerflex Systems Income Fund is a leading supplier of products and services to the global oil and gas production industry. Our core expertise is the supply of products and services between the wellhead and the pipeline. Enerflex provides natural gas compression and process equipment for sale or lease, hydrocarbon production and processing facilities, electrical, instrumentation and controls services and a comprehensive package of field maintenance and contracting capabilities. Through our ability to provide these products and services in an integrated manner, or as standalone offerings, Enerflex offers its customers a unique value proposition.

Headquartered in Calgary, Canada, Enerflex has approximately 2,985 employees. Enerflex, its subsidiaries, interests in affiliates and joint-ventures operate in Canada, Australia, the Netherlands, the United States, Germany, Pakistan, the United Arab Emirates, Egypt, Indonesia and Malaysia. Enerflex's trust units trade on the Toronto Stock Exchange under the symbol "EFX.UN".

Forward-Looking Statements

Certain information contained herein constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that we expect or anticipate may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "potential", "targeting", "intend", "could", "might", "should", "believe" or similar words suggesting future outcomes or outlook. The following discussion is intended to identify certain factors, although not necessarily all factors, which could cause future outcomes to differ materially from those set forth in the forward-looking information. The risks and uncertainties that may affect the operations, performance, development and results of Enerflex's businesses include, but are not limited to, the following factors: the impact of general economic conditions; industry conditions, including the adoption of new environmental and other laws and regulations and changes in how they are interpreted and enforced; volatility of oil and gas prices; oil and gas product supply and demand; risks inherent in Enerflex's ability to generate sufficient cash flow from operations to meet its current and future obligations; increased competition; the lack of availability of qualified personnel or management; labour unrest; fluctuations in the foreign exchange or interest rates; stock market volatility; opportunities available to or pursued by Enerflex and other factors, many of which are beyond the control of Enerflex.

The reader is cautioned that these factors and risks are difficult to predict and that the assumptions used in the preparation of such information, although considered reasonably accurate by Enerflex at the time of preparation, may prove to be incorrect or may not occur. Accordingly, readers are cautioned that the actual results achieved will vary from the information provided herein and the variations may be material. Readers are also cautioned that the foregoing list of factors and risks is not exhaustive. Additional information on these and other risks, uncertainties and factors that could affect Enerflex's operations or financial results are included in our filings with the securities commissions or similar authorities in each of the provinces of Canada, as may be updated from time to time. There is no representation by Enerflex that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof, and Enerflex does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by law. Any forward-looking information contained herein is expressly qualified by this cautionary statement.

Contact Information

  • Enerflex Systems Income Fund
    D. James Harbilas
    Vice-President & Chief Financial Officer
    (403) 236-6857
    (403) 720-4385 (FAX)
    Enerflex Systems Income Fund
    Berk Sumen
    Manager, Investor Relations & Communications
    (403) 720-4308
    (403) 720-4385 (FAX)