EnQuest Energy Services Corp.

EnQuest Energy Services Corp.

May 19, 2009 21:27 ET

EnQuest Announces Sale of Non-Core Assets

CALGARY, ALBERTA--(Marketwire - May 19, 2009) - EnQuest Energy Services Corp. ("EnQuest" or the "Corporation") (TSX VENTURE:ENQ) announces that it has entered into an Asset Purchase Agreement (the "Agreement") with Terracore Specialty Drilling Ltd. ("Terracore"), an arm's length party, for the disposition of substantially all of the assets of the Corporation's wholly-owned subsidiary, Northwell Oilfield Hauling Ltd. ("Northwell"). Under the terms of the Agreement, Terracore has agreed to acquire substantially all of the assets of Northwell, which include primarily oilfield trucking equipment and related contracts for an agreed sum of $4,800,000CDN in cash, to be paid to the Corporation in the form of an initial deposit equal to $250,000 upon signing of the Agreement, with the balance of required to be paid on closing, which is expected to occur by May 22, 2009. Lightyear Capital Inc., as the financial advisor to the Corporation, shall receive a finder's fee in the amount of 1.5% of the purchase price in respect of the sale of the Northwell assets.

The Corporation previously announced on January 15, 2009, that it had struck a Special Committee to consider and evaluate various proposals for the reduction of debt. Northwell has not been a core focus of the Corporation and the sale of its assets will result in a permanent reduction of EnQuest's consolidated debt. The Special Committee will continue its consideration of debt reduction proposals.

EnQuest provides energy services throughout North America in the following primary business segments: transportation services, rig moving, crane services, specialized heavy hauling, oilfield equipment rentals, retailer of new and refurbished Oil Country Tubular goods and pipe storage.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • EnQuest Energy Services Corp.
    W.T. David Murray
    Chief Executive Officer
    (970) 241-3420
    (970) 242-5078 (FAX)
    Email: wtdmurray@enquestenergy.com