Enerflex Systems Income Fund

Enerflex Systems Income Fund

November 16, 2005 23:59 ET

Enerflex Systems Ltd. Completes Strategic Investment

CALGARY--(CCNMatthews - Nov. 16) - J. Blair Goertzen, President and Chief Operating Officer of Calgary-based Enerflex Systems Ltd. (TSX:EFX) and Mr. Clayton Roska, President of Total Production Services Inc. ("Total") of Grande Prairie announced today that Enerflex has purchased a 40% equity interest in Total, a private Canadian service company. The undisclosed purchase price will be funded through Enerflex's existing bank lines. Future earnings generated specifically from the acquisition are not expected to significantly impact Enerflex's ongoing results.

Total provides contract production and personnel services to oil and gas producers throughout western Canada. A key element of Total's service is a database of over 2,000 personnel for operating field facilities. Enerflex's investment in Total represents an important step forward in the development of the Company's Variable Cost Compression strategy.

Mr. J. Blair Goertzen stated, "Total provides Enerflex with access to the skills to operate compression equipment for producers, a critical step in our 'Variable Cost Compression' initiative."

Variable Cost Compression is a strategic initiative that involves Enerflex owning, operating and maintaining compression equipment for a variable fee, based on throughput and uptime. "The goal of this product offering is to optimize compression equipment for the benefit of the producer. With the Western Canadian Sedimentary Basin expected to enter decline, optimization will allow producers to maximize production while at the same time, increasing their return on invested capital," explained Mr. Goertzen.

"This investment will help to strengthen all of our Canadian operations," added Mr. P. John Aldred, Chairman and Chief Executive Officer of Enerflex, "we will gain a far better understanding of the issues our customers face."

The new business relationship between Total and Enerflex will result in the operations of Total being re-branded as "Total Enerflex".

Enerflex Systems Ltd. is a leading supplier of products and services to the global oil and gas production industry. Our core expertise lies between the wellhead and the pipeline. Enerflex provides natural gas compression, power generation 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, the Company has approximately 2,400 employees and operations in Canada, Australia, the Netherlands, Indonesia, the United States, Pakistan and Germany. The Company's shares trade on the Toronto Stock Exchange under the symbol EFX.

Forward-Looking Statements

This document contains forward-looking statements. The words "anticipate", "expect", "project" and similar expressions identify forward- looking statements. Such statements are subject to certain risks, uncertainties and assumptions pertaining to operating performance, economic conditions and other factors. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected.

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

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