Enseco Energy Services Corp.
TSX VENTURE : ENS

Enseco Energy Services Corp.

May 17, 2010 09:18 ET

Enseco Energy Services Corp. Announces the Acquisition of a US Based Private Directional Drilling Company and the Purchase of Additional Directional Drilling Equipment

CALGARY, ALBERTA--(Marketwire - May 17, 2010) - Enseco Energy Services Corp. (TSX VENTURE:ENS) ("Enseco" or the "Company") is pleased to announce the Company has signed a letter agreement to acquire (the "Acquisition") all of the outstanding securities of a private directional services company ("Privateco") with operations in North Dakota and Wyoming.

The purchase price for the Acquisition is U.S.$2.35 million comprised of $1.5 million in cash payable at closing, an additional $550,000 in cash payable on December 31, 2010 and a $300,000 earnout amount which will be payable over a two-year period provided certain performance thresholds have been met. The Acquisition is subject to a number of closing conditions, including completion of satisfactory due diligence, and is expected to be completed on or before June 14, 2010. 

Privateco currently operates seven measurement while drilling (MWD) kits and related equipment primarily in the Bakken shale of North Dakota and is an industry leader in unmanned MWD operations. The existing management team, and Privateco's sales presence in Houston and Denver, are expected to remain with Enseco and will be an integral part of Enseco's growth in the Bakken and Rocky Mountain regions.

Due to continuing industry demand for directional and horizontal drilling services Enseco has also purchased an additional six MWD kits and 28 motors to be delivered within the second and third quarters of 2010.

Enseco's CEO, Mr. Lane Roberts stated "This acquisition and equipment purchase are continued steps in Enseco's growth particularly in the North American oil resource plays. We believe that the steps we have taken over the last six months have positioned Enseco to be a leader as a North American directional drilling service provider. To date, Enseco has grown it's job capacity from 6 to 47."

Enseco is a growing supplier of energy related services operating throughout United States and Canada providing directional drilling, production testing and swabbing services to the industry. 

FORWARD-LOOKING STATEMENTS

Certain information and statements contained in this press release constitute forward-looking information, including the completion of the Acquisition and the expected timing of closing, the anticipated purchase price for the Acquisition, expectations regarding the retention of Privateco's management team and existing sales presence in Houston and Denver, Enseco's ongoing focus, strategy, and growth plans, including its plans in the Bakken and Rocky Mountain regions and to be a leading North American directional drilling service provider, expectations regarding demand for directional and horizontal drilling services and the expected timing of delivery of the six MWD kits and 28 motors recently purchased by Enseco. The forward-looking statements contained in this press release speak only as of the date of this press release and are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are provided by management to enable investors to better understand our business, and such information may not be appropriate for other purposes. These forward-looking statements are based on certain key assumptions regarding, among other things, the value of the Acquisition, the benefits to be achieved from the Acquisition, the timing of closing, the satisfaction of closing conditions, including execution of definitive agreements and completion of satisfactory due diligence, the Company's current budget (which is subject to change), expectations regarding the Company's ability to continue its operations, the continued support of the Company's lender, expectations relating to future economic and operating conditions, commodity prices, foreign exchange rates and interest rates, Enseco's marketing, operational and business plans, the competitive environment and opinions of third-party analysts respecting anticipated economic and operating conditions. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, an inability to satisfy the conditions required to complete the Acquisition or to achieve the anticipated benefits of the acquisition, fluctuations in the market for oil and gas and related products and services, political and economic conditions, the demand for services provided by Enseco, industry competition, Enseco's ability to attract and retain both customers and key personnel, Enseco's ability to continue its operations and the continued support of the Company's lender. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Enseco's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, or if any of them do so, what benefits that Enseco will derive therefrom. Enseco disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Enseco Energy Services Corp.
    Lane Roberts
    President and CEO
    (403) 806-0088
    or
    Enseco Energy Services Corp.
    Blair Layton
    CFO
    (403) 806-0088